Property and Real Estate Disputes in Thailand

Property and real estate disputes in Thailand are governed by a robust legal framework rooted in the Thai Civil and Commercial Code (CCC), the Land Code B.E. 2497 (1954), and the Land Development Act B.E. 2543, alongside specialized regulations for condominiums, leases, usufructs, servitudes, and land registration. These disputes can involve issues of ownership, contractual breaches, boundary conflicts, fraudulent transfers, co-ownership disputes, lease violations, or inheritance-related claims.

Litigation in property matters is handled by the Civil Court or Provincial Courts, depending on the location and complexity of the case. The Land Office also plays a crucial quasi-judicial role in resolving registration-based issues. Foreigners involved in Thai property transactions—especially through leasehold, company structures, or co-ownership—must be acutely aware of the unique legal rules and procedural challenges in Thailand.

This article provides a deep-dive legal analysis of real estate disputes in Thailand, covering the common types of conflicts, relevant laws, court procedures, evidentiary requirements, and enforcement mechanisms.

1. Legal Framework Governing Real Estate Disputes

1.1 Core Legislation

• Civil and Commercial Code (Book IV – Property and Book III – Obligations)

• Land Code B.E. 2497

• Condominium Act B.E. 2522

• Land Development Act B.E. 2543

• Land Reform for Agriculture Act

• Civil Procedure Code (for litigation and enforcement)

1.2 Competent Authorities

• Land Department (Department of Lands)

• Civil Court / Provincial Court

• Administrative Court (in cases involving official acts or state-owned land)

• Central Intellectual Property and International Trade Court (for foreign-related disputes involving jurisdiction clauses)

2. Common Types of Property Disputes

2.1 Ownership and Title Disputes

• Conflicts over:

  • Land encroachment

  • Double-title issuance

  • Forged title deeds

  • Misuse of Nor Sor 3 or Nor Sor 3 Gor land

• May involve disputes over:

  • Chanote (Nor Sor 4 Jor) vs. possessory rights

  • Validity of past transfers or inheritance

Remedies may include cancellation of registration, possession claims (Section 1336 CCC), or quiet title action.

2.2 Boundary and Encroachment Disputes

• Arise when neighboring plots are improperly demarcated or encroachments occur

• Requires survey evidence, aerial photographs, or official boundary measurements

• Relief includes injunctions or orders to remove structures

2.3 Breach of Sale and Purchase Agreements

• Issues may involve:

  • Failure to transfer title

  • Breach of payment terms

  • Defective property disclosures

  • Unlawful deposit retention or refusal to return

• Litigation may seek specific performance or damages under contract law (Section 420 CCC)

2.4 Co-ownership and Partition Disputes

• Disputes between:

  • Heirs over inherited land

  • Joint purchasers of land or condo units

  • Couples (married or otherwise) without clear separation of ownership

• Remedies:

  • Partition by court order

  • Forced sale and distribution of proceeds

  • Injunctions to prevent use or sale without consent

2.5Condominium Disputes

• Between co-owners and juristic person (management office) regarding:

  • Building management

  • Allocation of common expenses

  • Use of shared facilities

• Governed by:

  • Condominium Act

  • Condominium regulations and co-owner meeting resolutions

• Courts may nullify unlawful resolutions or compel compliance

2.6 Lease and Tenancy Disputes

• Common causes:

  • Breach of payment terms

  • Illegal subletting

  • Failure to maintain premises

  • Disputes over lease termination or deposit refund

• Enforceable only if:

  • The lease is in writing

  • If >3 years, it must be registered at the Land Office to be enforceable beyond 3 years

Evictions require a court judgment and enforcement by the Legal Execution Department (LED).

2.7 Foreign Ownership Violations

• Foreigners holding land through:

  • Nominee Thai shareholders (in companies)

  • Unregistered long-term leaseholds with ownership-like control

  • Inheritance through restricted pathways

• Such arrangements may be challenged by authorities and subject to forfeiture or nullification

3. Procedural Path for Litigation

3.1 Filing the Complaint

• Plaintiff files a plaint in the competent court

• Must identify:

  • Parties

  • Title or contractual rights

  • Nature of dispute

  • Legal basis (ownership, lease, tort, contract)

  • Requested remedies

3.2 Injunctions and Temporary Relief

• Injunction to stop:

  • Construction

  • Encroachment

  • Sale or transfer pending litigation

• Court may require security bond for potential damages

3.3 Evidence and Documentation

• Land title documents (Chanote, Nor Sor 3)

• Land surveyor reports

• Construction permits or building plans

• Lease or sale agreements

• Witness testimony, expert opinions, aerial photography

All foreign-language documents must be translated and certified into Thai

4. Time Limits (Statutes of Limitation)

5. Enforcement of Judgments

Judgments related to property are enforced by the Legal Execution Department (LED):

• Eviction and possession of land or property

• Demolition of unauthorized structures

• Registration of title change based on court order

• Seizure and sale of property (in monetary claims)

Failure to comply with court orders can result in civil contempt, fines, or additional enforcement costs.

6. Alternative Dispute Resolution (ADR)

• Mediation is often required or encouraged by the courts prior to trial

• For construction and development disputes, arbitration clauses are frequently used

• Arbitration in Thailand is governed by the Arbitration Act B.E. 2545 (2002)

Enforcement of arbitral awards requires court recognition, unless under New York Convention (for foreign awards)

7. Special Considerations for Foreign Litigants

• Foreigners must be represented by Thai-licensed lawyers

• All court documents and evidence must be in Thai

• Foreign plaintiffs may be required to post a security bond under Section 143 of the Civil Procedure Code

• Litigation involving foreign companies may fall under the jurisdiction of the IP & IT Court if cross-border agreements are involved

8. Risk Management and Prevention Strategies

• Conduct comprehensive due diligence before property transactions

• Ensure leases are properly drafted, signed, and registered

• For co-investment, execute clear co-ownership or joint venture agreements

• Use surveyors to confirm boundaries and title accuracy

• Avoid using nominee structures to circumvent foreign land ownership restrictions

• Record and retain all correspondence, receipts, and photos for evidentiary support

Conclusion

Property and real estate disputes in Thailand are governed by a structured but formal legal regime. While the judiciary provides a reliable mechanism for the enforcement of rights, parties must carefully navigate complex rules on title registration, leasehold formalities, foreign ownership limits, and procedural requirements.

Whether you are a Thai national, foreign investor, developer, co-owner, or lessee, understanding your legal position, the evidentiary standards, and procedural framework is critical in resolving disputes or avoiding them altogether.

Litigation is available, but the best strategy remains preventive structuring, clear documentation, and adherence to Thai land and civil law principles.