Property and Real Estate Disputes in Thailand

Property and real estate disputes in Thailand are common, commercially consequential and often document-driven. Because Thailand’s Land Department registry system, title classes and administrative procedures determine legal priority and enforcement, disputes typically turn on title type, registration status, documentary proof and whether parties followed Land Office and statutory formalities. This guide explains the main causes and legal issues in Thai real-estate disputes, how the courts and enforcement agencies treat them, practical interim remedies, alternatives to litigation, and sensible avoidance and mitigation strategies.

Common causes of disputes

1. Title defects and competing claims. Chanote (freehold) titles are strongest, but Nor Sor 3/3 Gor and agricultural certificates carry weaker protections; gaps in chains of title, unregistered conveyances and earlier unrecorded interests lead to competing claims.

2. Boundary and encroachment disputes. Surveyor errors, missing boundary markers, or neighbors’ encroachments on land parcels frequently trigger litigation.

3. Forged instruments and fraud. Forged signatures, fabricated transfer deeds, sham notarizations and nominee-share arrangements to circumvent foreign-ownership rules occur and create criminal and civil claims.

4. Unreleased mortgages and creditor claims. Failure to discharge registered mortgages, undisclosed pledges and enforcement actions by creditors of a seller are recurring problems at closing.

5. Lease disputes and landlord/tenant claims. Disputes regarding unregistered long leases, renewal clauses, compensation for improvements, and termination rights are common—especially where foreign occupants rely on long-term lease structure.

6. Condominium conflicts. Issues over common-area management, foreign quota infringements, and developer liabilities for defects are typical in condo projects.

7. Zoning, land-use and conversion problems. Purchasing agricultural land without formal conversion for commercial use or overlooking permitted uses can block intended projects and spur administrative and civil actions.

8. Developer insolvency and project delays. Buyers in pre-sale projects face claims for delays, refund disputes, and competing creditor priorities when developers become insolvent.

How Thai law treats property disputes — key legal anchor points

• Registration principle and priority: Registered rights at the Land Department usually prevail against later claims. A registered chanote confers the most secure title; absence of registration for a long lease (>3 years) or a mortgage exposes the lessee to third-party risk.

• Evidence and burden: Courts emphasize documentary proof. The person asserting a right (title, separate property, release of mortgage) must produce original documents, transfer stamps, and Land Office extracts.

• Criminal overlap: Forgery, use of forged documents and fraudulent land transfers are criminal offenses—civil claims often accompany criminal complaints to the police and public prosecutor.

Typical procedural paths and remedies

1. Civil litigation

Filing a civil action in the competent court (trial court, sometimes specialized commercial or IP court for certain disputes) seeks declarations of title, injunctions, damages, or orders to register transfers. Expect pleadings, document exhibits, witness testimony and expert surveys. Timeframes vary widely—simple cases may resolve in a year; contested complex disputes and appeals can stretch for several years.

2. Provisional and interim relief

Early interim relief is crucial: preservation orders, provisional injunctions, orders to suspend registration at the Land Office, or attachment of assets can prevent dissipation. Courts typically require showing a prima facie case, urgency and risk of irreparable harm; security (bond) is sometimes required.

3. Enforcement

Final judgments are enforced via the Department of Legal Execution (seizure, bank garnishment, auction). Enforcing against land needs Land Department coordination and careful title checks; third parties with prior registered rights can complicate execution.

4. Criminal remedies

Where forgery, embezzlement or fraud exists, criminal prosecution runs in parallel. A successful criminal conviction can strengthen a civil claim, but criminal processes have different standards and timelines.

5. Arbitration and alternative dispute resolution (ADR)

Commercial parties commonly use arbitration for contract disputes. Thailand recognizes domestic and international arbitration, and arbitral awards can be enforced in Thailand under the New York Convention. However, disputes over land title sometimes require court recognition because the Land Office’s registries and public-order issues may not be fully remediable by arbitral awards alone.

Practical strategy for plaintiffs and defendants

• Plaintiffs: Move quickly to preserve evidence and obtain provisional measures (freeze, attachment, suspension of Land Office registration). Secure originals of title documents and obtain a certified Land Department extract. Commission a licensed surveyor and prepare a clear chain-of-title timeline.

• Defendants: Check procedural defenses—jurisdiction, laches, good-faith purchaser for value (if applicable), and registered interests that may trump the claimant. Preserve documents proving payment, release, or prior registration.

Special concerns for foreigners

Foreigners cannot normally own land freehold; common workarounds (Thai company holding land, long leases, condominium purchases under foreign quota) create particular transactional and dispute risks. Nominee arrangements to conceal foreign beneficial ownership are legally risky and can produce invalid transfers or criminal exposure. Foreign parties should favor transparent structures and local legal advice, and avoid relying solely on informal assurances.

Due-diligence checklist to avoid disputes

1. Obtain an original certified Land Department extract and verify owner identity against ID/passport.

2. Confirm title class (chanote vs Nor Sor types), coordinates, and a licensed surveyor’s on-site verification.

3. Search for registered mortgages, pledges, caveats, or court notices. Check Department of Legal Execution records for attachments.

4. Require seller warranties and indemnities in the SPA; insist on delivery of original title deed at closing.

5. Make closing conditional on mortgage release and production of clear Land Office register.

6. For company sellers, obtain up-to-date corporate extracts, board resolutions, and shareholder approvals.

7. Verify land-use conversion, zoning permits and development papers—especially for commercial projects.

8. Use escrow or Land Office deposit mechanisms to hold funds until registration is complete.

9. Consider title insurance (limited availability) or escrowed indemnities for known risks.

10. Have robust dispute-resolution clauses (governing law, seat of arbitration, emergency relief procedures).

Drafting protections to include in contracts

• Express seller representations and warranties about title, absence of encumbrances, and authority to sell.

• Seller covenant to obtain mortgage release and indemnify buyer for any undisclosed encumbrances.

• Condition precedent requiring delivery of original title and clean Land Department extract.

• Escrow or deposit with staged release upon registration.

• Liquidated damages for developer delay and clear mechanism for refund.

• Choice-of-forum clause (Thai courts or international arbitration) and interim relief protocol (court or emergency arbitrator).

Conclusion — pragmatic priorities

Real-estate disputes in Thailand are resolvable but often document-heavy and time-consuming. The single most important protective step is thorough, early due diligence: secure original Land Department extracts, confirm boundaries with a licensed surveyor, insist on registered protections, and use conditional closings and escrow mechanisms. When disputes arise, seek immediate provisional relief to stop dissipation, coordinate civil and criminal remedies where fraud is suspected, and consider arbitration for commercial contract issues while preserving court remedies needed for title registration and enforcement. Local counsel with experience in Land Office practice, survey evidence and enforcement procedure is essential to navigate Thailand’s distinctive property landscape.