Property and Real Estate Disputes in Thailand

Property and Real Estate Disputes in Thailand. Thailand’s real estate sector has long been a pillar of economic activity, attracting both domestic and foreign investors. However, the sector’s complexity, combined with overlapping legal frameworks, traditional practices, and evolving regulatory standards, gives rise to property and real estate disputes. Such disputes can involve individuals, companies, government entities, and foreign investors, often centering on ownership, boundaries, contracts, or development rights. Successfully navigating these disputes requires a detailed understanding of Thai property law, litigation procedures, and practical challenges.

This article provides an in-depth guide to the common types of property disputes in Thailand, the legal framework governing them, remedies available, and key procedural and practical considerations.

Legal Framework Governing Property Disputes

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

The Civil and Commercial Code (CCC) — particularly Books IV (Obligations) and V (Property).
The Land Code B.E. 2497 (1954) — governing land title registration, transfer, and ownership.
The Condominium Act B.E. 2522 (1979) — governing condominium ownership and management.
The Building Control Act B.E. 2522 (1979) — for construction-related matters.
The Land Development Act B.E. 2543 (2000) — regulating subdivision and development of land.
The Trade Competition Act B.E. 2560 (2017) — in cases of anti-competitive conduct in the real estate sector.

Disputes are adjudicated primarily by the Civil Courts, though some matters may involve the Administrative Court (e.g., disputes against government decisions) or arbitration, especially in commercial contracts.

Common Types of Property Disputes

1️⃣ Ownership and Title Disputes

Conflicting claims to ownership, often arising from unclear title history or alleged forgery of documents.
Cases involving double sales (where one seller unlawfully sells the same property to two parties).
Invalid or fraudulent title deed issuance.
Disputes over inheritance of land or buildings.

2️⃣ Boundary and Encroachment Disputes

Disputes regarding overlapping land plots, often due to inaccuracies in land surveys.
Encroachment by neighboring structures or unauthorized use of land.
Adverse possession (prescription) claims by long-term occupants.

These cases often require court-ordered land surveys or expert evidence.

3️⃣ Contractual Disputes

Breach of sale and purchase agreements (e.g., failure to transfer title after payment).
Developer-buyer disputes in off-plan condominium or housing projects (e.g., construction delays, deviation from approved plans).
Lease or usufruct disputes (e.g., eviction, non-payment, breach of use conditions).

4️⃣ Co-ownership and Condominium Disputes

Disputes among co-owners regarding use of common property or payment of common expenses.
Claims against the juristic person (condo management body) for failure to maintain the building or misuse of funds.
Unauthorized alterations to common areas.

5️⃣ Construction and Development Disputes

Defective construction claims (e.g., structural defects, substandard materials).
Disputes between developers and contractors regarding contract performance.
Disputes over zoning, planning permission, or environmental compliance.

Dispute Resolution Forums

Civil Court

Most property disputes are filed with the Civil Court or Provincial Courts, depending on the location and value.
Judges rely heavily on documentary evidence (e.g., title deeds, contracts) and expert opinions (e.g., surveyor reports).

Administrative Court

Disputes against administrative actions, such as revocation of title deeds or permits.

Arbitration

Common in disputes arising under construction contracts or commercial property development agreements.
Governed by the Arbitration Act B.E. 2545 (2002).

Legal Remedies Available

Depending on the nature of the dispute, available remedies include:
✅ Specific performance — ordering transfer of title or fulfillment of contractual obligations.
✅ Injunctions — ordering cessation of encroachment or unlawful construction.
✅ Damages — monetary compensation for breach of contract or tort.
✅ Demolition/removal orders — for structures built on encroached land.
✅ Correction of title records — e.g., cancellation or amendment of improperly issued title deeds.

Key Procedural Considerations

Evidence

Title deeds (Chanote, Nor Sor 3 Gor, Nor Sor 3) and Land Office records form the foundation of most property disputes.
Surveys, maps, and aerial photographs may be critical in boundary cases.
Expert testimony (e.g., surveyors, engineers) is frequently required.

Court-ordered site inspection

Courts often order an on-site inspection or survey to assess the physical aspects of the dispute.

Duration

Real estate litigation in Thailand can take several years, particularly when appeals are involved.

Challenges in Real Estate Disputes

⚠ Inaccurate or outdated land surveys

Many disputes arise from historical inaccuracies in land boundaries or improper demarcation.

⚠ Forgery and fraud

Cases involving forged title deeds or improper Land Office registrations are complex and may require parallel criminal proceedings.

⚠ Foreign ownership restrictions

Foreigners cannot own land directly in Thailand, and disputes sometimes arise from attempts to circumvent this restriction via nominee structures, which are unlawful.

⚠ Complex inheritance claims

Disputes over inherited property can be prolonged due to the need to establish legal heirs and resolve competing claims.

Prevention and Risk Mitigation

While this article focuses on disputes, prevention is critical:

Due diligence before purchase, including full title search at the Land Office.
Boundary survey before purchase or construction.
Clear and comprehensive contracts, especially in joint ventures and co-ownership arrangements.
Proper registration of all rights (e.g., leases exceeding three years, usufructs, superficies).

Case Example

👉 A landowner alleges that a neighboring developer has encroached on their land by constructing a wall 2 meters beyond the true boundary. The owner files suit seeking:

A court-ordered survey.
An injunction to stop further construction.
Demolition of the encroaching structure.
Damages for loss of use.

The court appoints a survey expert, holds hearings, and after 2 years, rules in favor of the landowner, ordering removal of the wall and compensation for damages.

Enforcement of Judgments

When a party prevails:

The judgment can be registered at the Land Office to effect title corrections.
Enforcement officers may supervise demolition or removal of encroaching structures.
Asset seizure may occur to satisfy damage awards.

Alternative Dispute Resolution (ADR)

Mediation: Increasingly encouraged by Thai courts at pre-trial or trial stage.
Arbitration: Common in large-scale development disputes, particularly involving foreign investors or contractors.

Conclusion

Property and real estate disputes in Thailand are as varied as the country’s complex legal and regulatory environment. Whether arising from boundary issues, ownership claims, contractual breaches, or development conflicts, these disputes demand careful navigation of Thai law, procedural requirements, and practical realities. Success in such disputes hinges on thorough evidence, skilled legal strategy, and, where possible, proactive prevention through sound planning and contractual safeguards.