Property and Real Estate Disputes in Thailand

Property and Real Estate Disputes in Thailand. Thailand’s property sector is governed by a mix of statutory law, customary usage, and judicial interpretation. Disputes concerning property and real estate are adjudicated within a highly structured legal framework defined by the Civil and Commercial Code (CCC), Land Code B.E. 2497 (1954), and a series of administrative regulations. Due to the diversity of land tenure documents and foreign ownership restrictions, real estate disputes in Thailand often involve complex interactions between private rights, administrative law, and public policy.

II. Governing Legal Framework

A. Key Legislation

1. Civil and Commercial Code (Sections 1298–1434): Governs ownership, co-ownership, lease, servitude, superficies, possession, and contractual obligations.

2. Land Code B.E. 2497 (1954): Regulates land registration, title issuance, and restrictions on foreign ownership.

3. Land Development Act B.E. 2543 (2000): Applies to subdivision and zoning disputes.

4. Condominium Act B.E. 2522 (1979): Applies to disputes involving condominium units and juristic entities.

5. Building Control Act B.E. 2522 (1979): Used in disputes involving illegal construction or zoning violations.

B. Jurisdiction

III. Common Types of Property and Real Estate Disputes

1. Ownership and Title Disputes

These are disputes over who holds legal title to land or buildings. Issues may involve:

• Conflicting title deeds (e.g., Chanote vs. Nor Sor 3)

• Forged or fraudulently transferred title

• Overlapping land parcels or cadastral map inconsistencies

• Adverse possession claims under Sections 1382–1385 CCC

Legal resolution often involves forensic title deed tracing, land surveys, and judicial cancellation or rectification.

2. Boundary and Encroachment Disputes

Arise where:

• The physical use of land exceeds title boundaries

• There is no fixed survey marker or an imprecise survey (common with NS3 titles)

• A building or structure intrudes into a neighboring plot

Resolution often requires:

• Survey by the Department of Lands

• Application for boundary demarcation

• Action for removal, damages, or injunction under Section 1311 CCC

3. Leasehold Disputes

Common in both residential and commercial contexts, especially where:

• Lease duration exceeds 3 years but remains unregistered (unenforceable beyond 3 years)

• Lessee fails to vacate after lease expiration

• Lessor breaches covenants or prematurely terminates lease

• Subleasing or lease assignment is contested

Registered lease rights can be enforced in court; unregistered leases may be defensible only as short-term tenancies.

4. Co-ownership and Partition Disputes

Under Sections 1356–1364 CCC, disputes between co-owners may involve:

• One co-owner refusing to sell or develop the property

• Disagreement over proportionate shares

• Partition of jointly owned land or buildings

Courts may order partition in kind or partition by sale through public auction, distributing proceeds accordingly.

5. Condominium and Juristic Person Disputes

Under the Condominium Act:

• Unit owners may challenge mismanagement by the juristic person

• Juristic persons may sue owners for defaulting on common fees

• Unauthorized alterations to shared spaces or exclusive use rights may trigger litigation

These matters often require judicial interpretation of the condominium’s bylaws and developer declarations.

6. Developer–Buyer Disputes

• Failure to transfer land or unit title on completion

• Use of substandard materials or deviation from the approved plan

• Misrepresentation during the pre-sale period

• Disputes over escrow accounts or late-stage project abandonment

Buyers may seek rescission, specific performance, or damages under contract law.

IV. Procedural Mechanisms for Dispute Resolution

A. Civil Court Proceedings

To initiate a lawsuit, the plaintiff must:

• File a plaint with supporting evidence (contracts, title deeds, surveys)

• Provide translated documents if parties or documents are foreign

• Request interim measures (e.g., injunctions, asset freezes) where appropriate

Procedures are governed by the Civil Procedure Code, with typical litigation timelines extending from 6 months to 2 years, depending on complexity and appeals.

B. Interim and Provisional Relief

Courts may issue interim injunctions to:

• Stop construction

• Prevent transfer or registration of disputed land

• Preserve the status quo pending final judgment

The applicant must demonstrate urgency and probable success on the merits.

C. Administrative Appeals

For matters involving:

• Title rectification

• Survey complaints

• Zoning and land use restrictions

An administrative appeal must first be filed with the Director of the Provincial Land Office, and subsequently with the Minister of Interior. These must precede any judicial review.

V. Evidentiary Requirements and Land Surveys

A qualified land surveyor may be appointed by the court, or parties may submit independent expert reports.

VI. Enforcement of Judgments

A. Civil Judgments

Enforced through a court execution officer, who may:

• Register title changes at the Land Office

• Evict unlawful occupants

• Sell land via public auction

Judgments must be final and enforceable—interlocutory rulings or pending appeals generally preclude enforcement.

B. Criminal Judgments (e.g., Forgery, Encroachment)

Upon conviction:

• The court may order rectification of land title

• Compensation to victims

• Restoration of damaged property

Criminal findings often support subsequent civil claims, particularly where ownership fraud is involved.

VII. Special Issues for Foreign Parties

Foreign individuals and entities may face additional challenges:

• Inability to own land (except under limited exceptions, such as BOI investment)

• Limitations on court-appointed executors or estate administrators

• Requirement for certified Thai translations of all documents

• Difficulties in enforcing foreign judgments related to Thai land

Foreign leaseholders, superficiaries, or condominium owners must ensure their rights are registered and clearly documented, as unregistered agreements are unenforceable beyond 3 years under Thai law.

VIII. Alternative Dispute Resolution (ADR)

Thailand allows property disputes to be resolved by:

• Mediation, which is increasingly encouraged by courts

• Arbitration, particularly where foreign developers or multinational investors are involved

• Private negotiation, backed by written settlements registered with the court

Arbitration awards are enforceable in Thailand under the New York Convention, provided the subject matter (e.g., lease rights) is arbitrable under Thai law.

IX. Conclusion

Real estate disputes in Thailand are governed by a structured legal regime that protects registered property rights while offering judicial recourse for parties with legitimate claims. However, the type of land document, the existence and registration of rights, and procedural compliance heavily influence the outcome.

Practical and legal diligence—at the time of acquisition, development, and contract drafting—is essential. When disputes arise, success often depends on the quality of documentation, availability of cadastral records, and litigant strategy in both civil and administrative forums.