Property Mortgages in Thailand. Mortgages are the main form of secured lending against immovable property in Thailand. They are registrable real rights: the lender takes a non-possessory security interest which must be created in writing and registered at the local Land Office to bind third parties and establish priority. Below I explain the legal mechanics, registration and fees, how priority works, enforcement routes, lender and borrower practice, release of security, special issues for foreigners, and a practical checklist you can use on a deal.
Legal framework — what the law requires
Mortgages are governed by the Civil & Commercial Code and administered through the Department of Lands (Land Office). A mortgage contract must be in writing, specify the property and state either a sum certain or a maximum secured amount in Thai currency; the mortgage is only perfected when the official mortgage form is signed and the entry is made at the Land Office for the district where the property sits. The mortgage extends to interest, contractual compensation and enforcement costs unless the parties agree otherwise.
Creating the mortgage — form, language and supporting documents
Practically, lenders prepare two documents: (a) the official mortgage form (the form the Land Office will register) in Thai, and (b) a supplemental loan/mortgage agreement containing the detailed lender/borrower commercial terms. Land Office practice commonly requires the official form in Thai; supplemental English documents are typically attached but a certified Thai translation is required or the Thai version must prevail. The mortgagor must be owner of the property (or have authority to encumber it) and sign before the Land Office registrar (or by power of attorney where permitted).
Registration mechanics and fees
To be effective against third parties and to establish priority, the mortgage must be registered at the Land Office where the title is held. Registration is performed by presenting the original title deed, the signed mortgage form, ID/passport/corporate documents and paying the statutory fees. The Land Office charges a registration fee equal to 1% of the secured amount (commonly capped in practice at THB 200,000) plus stamp duty on the mortgage instrument; note the Thai government has in recent policy rounds temporarily reduced transfer and mortgage registration fees in specific low-value owner-occupied cases (for example, reduced rates for transactions up to THB 7 million under temporary notifications). Always check current Land Office notices because fee concessions have been introduced and extended in recent years.
Perfection & priority — the simple rule
Priority between competing mortgages is determined by order of registration at the Land Office — “first in time, first in right.” That ordering governs entitlement to sale proceeds on enforcement: senior mortgagees are paid first, then junior mortgagees and other creditors. For lenders this makes an early, correctly executed Land Office entry the single most important act of perfection.
Enforcement — how mortgage security is realized
Thai law provides two principal enforcement paths: (a) bring court proceedings to obtain an order for seizure and sale by public auction, or (b) in prescribed circumstances institute foreclosure by the mortgagee where statutory conditions are met. Before commencing judicial enforcement a lender must give written notice to the mortgagor requiring performance within a reasonable period fixed in the notice (amendments and guidance in recent years set minimum notice expectations — commonly not less than 60 days). If the mortgagor does not comply, the mortgagee may file in court for seizure and sale; the court then supervises advertising, auction and distribution of proceeds. Enforcement is ultimately judicial and can be time-consuming, so lenders build remedies (guarantees, cross-collateral, accelerated interest, assignment of rents, insurance) into loan packages.
Lender protections and standard bank practice
Thai banks and institutional lenders typically require the following as part of mortgage finance:
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an up-to-date certified Land Office extract and a licensed surveyor’s verification of boundaries;
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original title deed to be produced at registration and the Land Office appointment for signature;
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corporate approvals, board resolutions, legalized POAs where a company borrower or guarantor is involved;
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borrower/guarantor personal guarantees and/or corporate guarantees from related entities;
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mandatory collateral insurance (fire/property insurance) with the bank named as loss payee or with assignment to the bank; and
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prudential covenants (loan-to-value limits, financial covenants, material adverse change clauses).
Banks will typically manage the Land Office registration themselves or with local counsel to ensure correct official forms and timely annotation on the title. Foreign borrowers often face stricter underwriting (proof of remitted funds, work permit/visa requirements) and fewer banks will provide land loans to non-residents compared with condo financing.
Release and discharge of mortgage
A mortgage is released only by registering a release deed (a Land Office discharge entry) once the underlying obligation is satisfied. Lenders should prepare a clear discharge procedure in the loan documentation (conditions for release, evidence to be supplied, who pays release fees) and ensure the release is registered promptly; failure to record discharge can leave a cloud on title and prevent resale or refinancing. The Land Office will normally require the original title and proof of payment before processing the release.
Special issues for foreigners & asset types
Foreigners may hold condominiums in freehold and these can be mortgaged in practice, but foreigners cannot generally own land freehold, so land financing for foreigners relies on leasehold structures, Thai-owned vehicles, or BOI/exemption routes — each option carries legal, tax and practical constraints. Lenders and buyers should check whether the title type (chanote, Nor Sor 3, possessory documents) is acceptable to banks; many lenders will only accept chanote or upgraded titles for first-ranking security.
Practical due diligence checklist (for lender or buyer)
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Obtain certified Land Office extract and back-of-title encumbrance table.
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Commission boundary survey and check for encroachments.
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Confirm deed type (chanote preferred) and whether title can support mortgage.
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Require corporate/board authorizations and certified corporate documents where relevant.
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Lock in insurance, guarantees and an agreed release procedure in the facility agreement.
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Check current Land Office fee rules (temporary reductions may apply) and budget for registration + stamp duty.
Conclusion
Mortgages in Thailand are powerful but formal instruments: registration at the Land Office (with Thai-language official forms), early perfection to secure priority, clear enforcement mechanics and robust ancillary protections (insurance, guarantees, covenants) are the pillars of safe lending. For borrowers, the key practical rules are transparency on title type and obligations; for lenders, getting the Land Office mechanics right—early and precisely—is the fastest route to protecting repayment. For any sizeable mortgage transaction use specialist local counsel to prepare official forms, confirm current Land Office fee notifications and run the required Land Office and survey checks before funding