Property and Real Estate Disputes in Thailand

Property and real estate disputes in Thailand are a recurring feature of the legal landscape, particularly given the country’s booming tourism, investment potential, and land ownership restrictions for foreigners. Whether involving Thai nationals or international parties, such disputes arise from complex intersections of contract law, land law, zoning regulations, family law, and foreign ownership restrictions.

Understanding how Thai law structures land ownership, leaseholds, co-ownership rights, and contractual obligations is essential for resolving or avoiding these disputes. This article provides an in-depth legal and procedural analysis of property disputes in Thailand.

1. Legal Framework

1.1 Core Statutes

The legal regulation of real estate in Thailand is governed by:

The Civil and Commercial Code (CCC) – Book IV (Property) and Book V (Obligations)
The Land Code B.E. 2497 (1954)
The Condominium Act B.E. 2522 (1979)
The Foreign Business Act B.E. 2542
The Environmental and Building Control Acts
The Land Development Act B.E. 2543

Dispute resolution is conducted within the general Thai court system, though specialized courts (e.g., Administrative Court or Intellectual Property and International Trade Court) may be involved depending on the subject matter.

2. Common Types of Property Disputes

2.1 Title and Ownership Conflicts

Land disputes often involve claims over ownership rights, especially where:

Title documents are unclear, forged, or duplicate
Possession does not reflect registered ownership
Adverse possession or long-term occupation is asserted

Thailand recognizes multiple classes of land titles, including:

Chanote (Nor Sor 4 Jor) – full ownership title with GPS coordinates
Nor Sor 3 Gor / Nor Sor 3 – confirmed use rights but not full ownership
Possessory rights (S.K.1) – very weak claims with no right to transfer

Ownership disputes usually require a land title search, witness evidence, and in many cases expert testimony from land surveyors.

2.2 Boundary and Encroachment Issues

Boundary disputes are common due to errors in old title maps, unclear demarcation, or informal land use agreements. Encroachment may involve:

Unlawful construction on adjacent land
Fences or roads built beyond the property line
Overhanging structures or utility encroachment

Litigation may seek injunctive relief, damages, or demolition orders. Relief is granted under CCC Sections 1308–1310.

2.3 Leasehold and Usufruct Conflicts

Thai law limits leaseholds to 30 years (renewable) under Section 540 CCC. Disputes arise from:

Invalid or unregistered lease agreements
Conflicts over renewal clauses
Breach of maintenance or use conditions
Death of the lessor (impacting long-term rights)

Usufruct (Section 1417 CCC) and superficies agreements may also be disputed, especially when the owner sells the land.

2.4 Co-ownership and Partition

Where multiple parties co-own land (e.g., inheritance, joint investment), disputes may involve:

Disagreement over sale or development
Use rights and profits from rental income
Partition demands or forced sale requests

Under Section 1357 CCC, co-owners may seek judicial partition. The court may divide land physically or order a public sale.

2.5 Breach of Real Estate Contracts

Common contractual disputes include:

Developer failing to complete construction
Delay in transferring land or condominium ownership
Buyer defaulting on installment payments
Misrepresentation in pre-sale marketing

Legal claims are often brought under CCC Sections 369–394 for breach, rescission, or damages.

2.6 Foreign Ownership and Nominee Structures

Foreigners may not own land in Thailand unless authorized by BOI privileges, the Industrial Estate Authority, or specific treaties (e.g., U.S. Amity Treaty in certain contexts). However, disputes often arise where:

Land is purchased using a Thai nominee (illegal under Land Code Section 96 bis)
Foreign parties fund the purchase but hold no legal title
“Sham” marriage or corporate structures are used

Thai courts will pierce the arrangement to determine beneficial ownership and may order cancellation of the transaction and forfeiture of the land.

3. Litigation Procedure

3.1 Jurisdiction and Filing

Property disputes are generally filed in the Civil Court with territorial jurisdiction over the land. Claims must be supported by:

Verified pleadings
Copies of title documents
Photographs, maps, and expert assessments

If a dispute involves administrative decisions (e.g., Land Office approvals or zoning permits), the Administrative Court may have jurisdiction.

3.2 Pre-trial and Trial Procedure

The court may order pre-trial mediation
Evidence submission is in writing; oral hearings follow
Surveyors, engineers, and witnesses often testify
Land Office representatives may be subpoenaed

Judges actively question parties and experts. Proceedings are conducted in Thai, and foreign parties must provide translations and be represented by licensed Thai attorneys.

4. Remedies and Court Orders

Depending on the nature of the dispute, remedies may include:

Declaratory judgments confirming ownership or usage rights
Injunctions to stop encroachment or construction
Compensatory damages for contractual breaches
Restitution and cancellation of illegal transactions
Demolition orders in cases of unlawful structures
Partition orders for co-owned land

Interest may be awarded on damages at the statutory rate (currently 5% annually), and enforcement is pursued through the Civil Procedure Code’s execution process.

5. Evidence and Challenges

Property disputes often hinge on:

Title deed integrity – verified with the Land Office
Aerial photography and survey data – from licensed land surveyors
Boundary markers and government maps
Contracts and payment records – including bank transfers
Witnesses to possession, transfer, or use

For foreign litigants, issues of language, document authentication, and lack of title registration may complicate proceedings.

6. Alternative Dispute Resolution (ADR)

Thailand encourages ADR, particularly in:

Condominium disputes (under the Condominium Act)
Developer-buyer disputes (under Consumer Protection mechanisms)
Complex land development disputes

Mediation may be ordered by the court or initiated voluntarily. Arbitration clauses are increasingly found in joint venture or construction agreements.

7. Enforcement and Appeals

7.1 Enforcement of Judgments

Once final, judgments may be enforced by:

Seizure of property
Auction of assets
Registration changes at the Land Office
Eviction or demolition through court bailiffs

The execution stage can be delayed if assets are contested or hidden.

7.2 Appeals

Appeals from civil judgments go to the Court of Appeal, and legal issues may be further appealed to the Supreme Court (Dika Court). Appeals are allowed as of right in property disputes, unless explicitly excluded by contract.

8. Practical Risk Factors and Prevention

Key causes of disputes include:

Unregistered or poorly drafted agreements
Failure to conduct proper due diligence
Use of informal or nominee arrangements
Ignoring zoning or building regulations
Lack of professional legal advice at acquisition

Due diligence should involve a full title search, contract review, land use verification, and compliance checks.

Conclusion

Property and real estate disputes in Thailand reflect the complex interaction of statutory property rights, contractual obligations, and regulatory oversight. Although Thai law provides mechanisms for protecting ownership, enforcing leasehold rights, and resolving boundary conflicts, the process is formalistic and can be slow.

For foreign investors and litigants, additional complications such as ownership restrictions, evidentiary barriers, and nominee prohibitions demand particular attention. Engaging experienced local counsel, ensuring all rights are properly documented and registered, and selecting the right forum (court or ADR) are crucial in resolving property disputes effectively.