Property and Real Estate Disputes in Thailand. The dynamic and diverse Thai property market, while attractive to both local and foreign investors, is not without its complications. With growing real estate development, transactions, and foreign participation, disputes are an inevitable reality. Property and real estate disputes in Thailand often arise due to title irregularities, breach of contract, land encroachments, co-ownership conflicts, and lease disagreements.

Understanding the legal infrastructure governing such disputes—and the processes through which they are resolved—is essential for anyone involved in real estate in Thailand.

1. Legal Foundations Governing Property Rights

Property and real estate rights in Thailand are primarily governed by:

• The Civil and Commercial Code (CCC) – governs ownership, leases, sale and purchase agreements, usufruct, superficies, and servitudes.
• The Land Code Act B.E. 2497 (1954) – outlines rules on land registration and land ownership.
• The Condominium Act B.E. 2522 (1979) – governs shared ownership and common property in condominium developments.
• The Land Development Act B.E. 2543 (2000) – regulates the subdivision and development of land.

Real estate disputes are litigated primarily in the Civil Court or Provincial Courts, and in some cases, the Administrative Court or Consumer Protection Board (for consumer-based real estate disputes involving developers).

2. Common Types of Property Disputes

A. Title and Ownership Disputes

These disputes often arise from:

• Conflicting title deeds (e.g., Nor Sor 3 vs. Chanote).
• Forgery or fraud in land title documents.
• Unregistered inheritance claims where title transfer from a deceased relative was never formalized.
• Overlapping land boundaries, particularly in rural or undeveloped areas where cadastral surveys may be outdated or incomplete.

Thai courts require a Land Office-issued title search and may commission expert land surveyors to verify boundaries.

B. Breach of Sale and Purchase Agreements

These are contractual disputes where:

• A party fails to transfer ownership despite receiving payment.
• A buyer defaults on agreed-upon installment terms.
• The developer delays project completion beyond the agreed schedule or fails to obtain required permits.

Remedies include specific performance, damages, or contract rescission. In many such cases, courts enforce contract clauses provided they are not contrary to Thai public policy.

C. Land Encroachment and Boundary Disputes

Disputes occur when:

• A neighbor’s structure or fence encroaches on adjoining land.
• One party unlawfully occupies or uses land registered to another.

The Land Office plays a critical role in demarcation, but in contested claims, civil litigation or injunctive relief may be necessary. Under Section 1304 of the CCC, the rightful owner may seek restitution and damages.

D. Lease Disputes

Lease conflicts often involve:

• Failure to honor lease duration (e.g., premature termination by landlord).
• Disputes over deposit refunds.
• Lack of registration (for leases over 3 years), which renders the lease unenforceable against third parties.

Foreigners, limited to leasehold arrangements, often enter into long-term leases, which—if not registered—can be challenged in court or not upheld in succession planning.

E. Developer and Off-Plan Disputes

Under the Condominium Act and Consumer Protection laws, buyers may sue developers for:

• Failure to deliver the unit as specified in the brochure or contract.
• Misuse of co-ownership fees.
• Misrepresentation of unit size or quality.

Buyers may take action via the Office of the Consumer Protection Board (OCPB) or initiate civil litigation for contractual breach or unfair trade practices.

3. Litigation Process in Thailand

A. Filing a Lawsuit

Most property disputes are adjudicated in Civil or Provincial Courts. The plaintiff must:

1. File a complaint.
2. Serve the summons and complaint to the defendant.
3. Attend preliminary hearings and submit evidence (e.g., land title, contract, maps).

The burden of proof lies with the plaintiff, and documentary evidence is critical.

B. Evidence and Experts

In real estate disputes, courts often require:

• Certified land title records from the Land Department.
• Survey reports or geospatial evidence.
• Translation and legalization of any foreign-language contracts.
• Witness testimony (e.g., neighbors, surveyors, legal consultants).

Expert opinions, especially from registered land surveyors or civil engineers, carry significant weight in determining factual land boundaries and construction issues.

C. Court Judgment and Remedies

Typical remedies include:

• Specific performance (e.g., transfer of title).
• Injunctions (to stop encroachment or unauthorized construction).
• Compensatory damages (for financial loss or emotional distress).
• Rescission of contracts and return to original state.

Some disputes may end with mediation ordered by the court or mutually agreed-upon settlement.

4. Alternative Dispute Resolution (ADR)

A. Mediation

Thai courts often encourage mediation before trial, especially in civil and land disputes. Mediators may be court-appointed or chosen by the parties.

Mediation allows for:

• Faster resolution.
• Preserved relationships between neighbors or business partners.
• Confidential settlement terms.

B. Arbitration

Real estate disputes involving high-value investments or foreign parties may be referred to arbitration under clauses in the contract.

• Thailand recognizes arbitration under the Arbitration Act B.E. 2545 (2002).
• Arbitral awards can be enforced under the New York Convention, to which Thailand is a signatory.

5. Real Property Disputes Involving Foreigners

Foreigners are generally restricted from owning land under Thai law. However, they may:

• Own condominium units (up to 49% of total saleable area).
• Enter 30-year leaseholds.
• Hold property through BOI-promoted companies or Treaty of Amity provisions (in rare cases).

Disputes involving foreigners often stem from:

• Invalid nominee structures (which may be challenged by authorities).
• Unregistered lease agreements.
• Verbal contracts or informal arrangements.
• Failure to use a licensed legal adviser or property lawyer.

Foreigners involved in disputes must ensure compliance with land laws, documentary registration, and contract translation to avoid adverse rulings.

6. Key Agencies in Property Disputes

• Land Department / Provincial Land Office – manages title verification, boundary demarcation, and title transfers.
• Department of Business Development (DBD) – when company ownership of land is involved.
• Office of the Consumer Protection Board (OCPB) – in developer disputes with consumers.
• Administrative Courts – when governmental action or permits are challenged.
• Courts of Justice (Civil/Provincial) – for most private property disputes.

Conclusion

Property and real estate disputes in Thailand require a strong understanding of the country’s legal framework, title registration system, and dispute resolution mechanisms. Whether the issue involves title inconsistencies, encroachment, lease violations, or contract breaches, timely legal advice and proper documentation are key.

Proactive due diligence, legally sound contracts, and awareness of both rights and obligations can significantly reduce the likelihood of protracted disputes. When conflicts arise, Thailand’s legal system offers multiple paths—litigation, mediation, or arbitration—for achieving enforceable and equitable resolutions.