Property mortgages in Thailand are the standard way lenders take security over real estate and related rights. Practically speaking, a mortgage creates a real right in favour of the lender that is registered against the land title at the Land Department; on borrower default the mortgagee must follow statutory enforcement steps (usually court proceedings) to seize and sell the mortgaged asset. This guide explains how mortgages are created and registered, types of mortgage security you’ll see in practice, enforcement and priority rules, foreign-buyer realities, recent policy trends affecting mortgage availability, and a practical checklist for borrowers and lenders.
Legal framework and what a mortgage does
Thai mortgage law is contained in the Civil and Commercial Code (Book III, Title 12). A mortgage is a contract by which property is assigned as security for an obligation; the mortgagee gains priority against unsecured creditors and—if properly registered—against subsequent purchasers. Registration at the Land Department is the essential step that converts the private agreement into a public, enforceable real right. Without registration a mortgage cannot have full legal effect against third parties who acquire an interest in the property.
Types of mortgage security commonly used
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Mortgage of land (freehold title / chanote / Nor Sor 4 Jor) — the most straightforward mortgage: owner pledges land and improvements. Lenders prefer chanote titles because of precise survey boundaries.
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Mortgage of rights / leasehold mortgage — when land ownership is restricted (for example foreign ownership) or the property is already subject to restrictions, lenders commonly take security over leasehold estates or other registrable rights.
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Mortgage of condominium units — condominiums are popular for foreigners; mortgage rights over condo units can be registered with the Land Department and are widely used by Thai banks for lending against units. Condominium purchases by foreigners must also follow foreign-exchange (FET) documentary requirements for bank financing.
Registration, fees and formalities
A mortgage must be registered at the Land Office covering the property. Typical document requirements include the original title deed, a signed mortgage agreement (Thai or bilingual with Thai prevailing), identity/corporate documents, and payment of fees. In practice lenders and conveyancers also require an up-to-date title search, survey plan where relevant, and certified corporate documents when the mortgagor is a company. Statutory costs commonly seen in practice include stamp duty and registration fees—many practitioner guides cite a registration fee of 1% of the mortgage amount (subject to a cap) plus stamp duty (historically 0.05% on the secured amount), although exact figures and caps should be checked with the Land Department or your conveyancer.
Priority, subordination and multiple mortgages
Priority among competing security interests generally follows registration date: earlier registered mortgages take priority over later ones. Lenders often require express subordination agreements or priority letters if a junior mortgage will be permitted. For sophisticated finance, intercreditor arrangements define remedies, sharing of sale proceeds, and enforcement mechanics. Because registration is decisive, an unregistered security interest is vulnerable against bona fide purchasers or later registrants.
Enforcement and foreclosure: the statutory route
Thailand’s enforcement regime is predominantly judicial. Before seizing and selling mortgaged property, the mortgagee must give the mortgagor written notice fixing a reasonable time to perform (the Code and standard practice require a reasonable cure period; many guides indicate this is commonly not less than 60 days). If the debtor fails to comply the mortgagee may file a court action for a judgment ordering seizure and sale by public auction. Courts supervise the sale process, and proceeds are distributed according to priorities. This judicial route contrasts with some jurisdictions’ non-judicial power-of-sale mechanisms and tends to take longer and be more document-intensive.
Consumer protection and recent reforms
In recent years Thailand has adopted measures to strengthen borrower protection and stabilize the mortgage market. Notably, the government and central bank have signaled policy moves to ease loan-to-value constraints and otherwise support the housing market during downturns. In 2025 the Bank of Thailand moved to relax some LTV rules to stimulate housing transactions, and fiscal measures reducing transfer/registration fees were discussed to increase affordability. These policy changes affect both borrower access and lenders’ underwriting calculations. Always confirm current LTV and regulatory guidance before modelling a loan.
Mortgages and foreign buyers
Foreigners face two practical constraints: first, foreigners generally cannot own freehold land in Thailand (with limited exceptions), and second, Thai banks require documentary proof and immigration/work/residency status to approve loans. For condominiums, foreigners may own units but funds for purchase in a foreigner’s name must be transferred to Thailand in foreign currency with a clean paper trail (FET form) for the title transfer; banks will typically insist on employment, work permit, tax history or local residency when lending to non-nationals. Lenders also commonly require guarantees, larger down payments, or shorter amortization for foreign borrower profiles.
Practical due diligence and valuer/lender checks
Lenders perform thorough technical and legal due diligence: updated Land Department title search, site inspection, valuation by a licensed valuer, corporate checks for company mortgagors (including share registers and beneficial owner inquiries), and searches for outstanding encumbrances. For developments with multiple units, lenders often require condo juristic person confirmation and review of building regulations. Borrowers should expect pre-commitment conditions, insurance requirements (fire, title protection where available), and covenant packages covering maintenance, transfer restrictions and reporting.
Practical checklist for borrowers & lenders
For borrowers: obtain certified title documents, confirm any foreign-exchange documentation (if a foreign buyer), expect valuation and legal costs, and budget for registration fees and stamp duty. For lenders: confirm chain of title, survey/plan alignment with title, confirm the proper form of mortgage for the asset (land vs leasehold vs condo unit), obtain corporate/individual identity checks and draft enforcement playbook consistent with Thai procedure.
Conclusion
Mortgages in Thailand provide robust creditor protection when correctly documented and registered, but enforcement is a judicial process that requires careful preparation, clear notice procedures and an understanding of priorities and title formalities. For foreigners the key practical issues are property type (condominium vs land), foreign-exchange documentation, and local lending criteria. Given changing regulatory settings (LTV relaxations and fee adjustments in 2024–25), borrowers and lenders should verify current rules and work with experienced Thai counsel, valuers and Land Department specialists when creating, registering or enforcing mortgage security.