Property Contracts in Thailand

A lease of immovable property (house, condo unit, commercial premises, or land) is a specific contract under Thailand’s Civil and Commercial Code. For foreigners, leasing is one of the practical ways to secure lawful use of real estate, especially where freehold land ownership is not available. This section highlights the main legal points only; a separate article covers details and case law.

• Contractual right: A lease is primarily a contractual right of use (not ownership). Subletting or permitting others to use the property depends on the lease terms.
• Evidence in writing: To sue on a lease, there must be written evidence signed by the liable party.
• Registration (over 3 years): A term exceeding 3 years should be registered at the Land Office to be enforceable against third parties.
• Maximum term: A registered lease term cannot exceed 30 years; any longer period is reduced to 30 years by law.
• Transfer / assignment: Assignment of the remaining term usually requires the lessor’s consent; for registered leases, any assignment should also be registered to be effective against third parties.
• Death and continuity: By default, a lease ends upon the lessee’s death. Continuity is typically addressed by careful drafting (e.g., continuation clauses, co-lessees, or an appropriate juristic-person lessee, where suitable).
• Change of owner: A properly registered lease generally binds a new owner, but not every clause automatically “runs with the lease”; some obligations remain personal between the original parties.

For readers considering a lease arrangement, the relevant contract templates are listed elsewhere on this site, with the detailed legal explanation in the separate lease article.

Mortgages (จำนอง) and loans (กู้ยืมเงิน) for real estate in Thailand operate under the Civil and Commercial Code. A mortgage secures a debt against property; a loan records the debt and repayment terms. Together, they form a practical framework for private lending secured by land, houses, or condos.

Mortgage (จำนอง): key points

• Nature: security over property without delivering possession to the mortgagee; gives priority over ordinary creditors.
• Registration: must be in writing, specify the property, and state a sum certain or maximum secured amount in THB; register at the Land Office to be effective against third parties.
• Eligible property: immovables (land/house/condo). (Certain registered movables may also be possible by law.)
• Who can mortgage: the current owner; conditional titles may be mortgaged subject to the condition.
• Multiple/third-party security: one obligation can be secured by multiple properties or by a third-party mortgagor.
• Enforcement safeguards: no automatic transfer of ownership on default (no pactum commissorium); enforcement proceeds per mortgage rules.
• Second mortgages: later mortgages may be registered; priority generally follows registration order unless agreed otherwise.

Loan (สัญญาให้กู้ยืมเงิน): key points

• Evidence: loans should be evidenced in writing (especially for larger sums) to be enforceable in court.
• Terms: principal, interest, repayment schedule, and default/late-payment clauses should be clearly stated.
• Secured vs unsecured: an unsecured loan can be paired with a registered mortgage over land/house/condo for stronger protection.
• Practical tip: attach copies of IDs/title deed, and keep proof of fund transfers together with the signed agreement.

See also

• Loan Agreement (Thai–English) — template
• Mortgage to Secure a Loan (Thai–English) — template
• Mortgage — Civil & Commercial Code overview
• Loan — Civil & Commercial Code overview

Home building and renovations in Thailand commonly involve the Building Control Act, the Town and City Planning Act, and related local regulations. The employer–contractor relationship is primarily governed by your written construction contract and the Civil & Commercial Code rules on hire of work.

Construction disputes are often caused by vague scope, unclear change orders, weak payment evidence, and missing acceptance/defects procedures. A good contract reduces risk by fixing the scope, price model, timing, quality standards, and remedies in writing.

Key points to include (practice checklist)

• Scope & documents: drawings, specifications, bill of quantities; set document precedence to resolve conflicts.
• Permits & approvals: allocate responsibility for building permits, inspections, and coordination with local authorities.
• Price model: lump sum, unit rate, or cost-plus; define provisional sums and how adjustments are valued.
• Payments: milestones/progress claims, retention (e.g., 5–10%), and what evidence must be submitted with each claim.
• Variations (change orders): written instruction, pricing method, and impact on time/cost (no “verbal” variations).
• Time for completion: program, extensions of time (EOT) criteria, and liquidated damages for delay.
• Quality & defects: standards, inspection/testing, Defects Liability Period (DLP), and rectification deadlines.
• Warranties & materials: brand/grade approval, substitution rules, and handover of manufacturer warranties.
• Insurance & safety: CAR (if any), third-party liability, and site safety obligations.
• Handover: practical completion, snag/punch list, as-built drawings, manuals, keys/utilities.
• Security: performance bond/guarantee (if used) and release conditions.
• Termination & disputes: default/cure steps, termination rights, governing law (Thai), venue, and a language-control clause (Thai–English).

See also

• Hire of Work — Civil & Commercial Code
• Building Construction Contract (Thai–English) — template

A land sale in Thailand is governed by Thailand’s Civil and Commercial Code rules on sale (Book III: Specific Contracts). In practice, the transaction usually involves both (1) a private Sale & Purchase Agreement (SPA) between the parties and (2) a final transfer at the Land Office where the official transfer form is executed.

Private SPA vs. Land Office transfer

• Private SPA (your contract): a detailed agreement that sets the commercial deal and legal protections—party details, land/title details, purchase price and payment terms, deposit, conditions precedent, transfer date, taxes/fees allocation, warranties, default remedies, and handover obligations.
• Land Office transfer (official form): the final step where ownership is transferred and registered. The Land Office document is typically brief and administrative in nature.
• Important: the Land Office’s standard transfer form is not a substitute for a well-drafted SPA and does not automatically override the parties’ private agreement. Your SPA remains the primary document governing the parties’ detailed rights and obligations, to the extent consistent with law.

See also

• Land Sale & Purchase Agreement — download
• Land Sale Contract — preview

A Deed of Assignment allows the assignor to transfer specific contractual rights or claims to an assignee (with or without consideration). The document should clearly identify which rights are assigned, from which underlying contract or property, the effective date, and any conditions.

In practice, an assignment is typically effective against the original counterparty only after proper notice or acceptance, depending on the contract. Where registered lease rights are assigned, the assignment usually must also be registered at the Land Office to be enforceable against third parties.

Key points

• What you can assign: rights under a contract (e.g., a buyer’s rights under a sale & purchase agreement before title transfer), or a registered lease’s remaining term (subject to the lease terms).
• Consent & notice: to be effective against the other party to the original contract, an assignment generally requires notice or acceptance by that party. For leases, the lessor’s consent is commonly required by the lease.
• Registration for leases: assigning a registered lease (over 3 years) should be registered at the Land Office to bind third parties and (typically) the new owner of the property.
• Rights vs. obligations: an assignment transfers rights/benefits. Transferring obligations usually needs a novation (tripartite agreement), not a simple assignment.
• Scope & deliverables: specify the assigned rights, effective date, any consideration, and attach/hand over copies of the underlying contract, IDs, and supporting documents.

Examples

• SPA rights: Assignor transfers all rights under a condo SPA to Assignee before Land Office transfer (with seller’s notice/consent).
• Lease term: Lessee assigns the remaining registered lease term to a new lessee, with lessor’s consent and Land Office registration.