THAILAND Law and Practice Contributed by: Olaf Duensing, Jerrold Kippen and Weeraya Kippen, Duensing Kippen, Ltd.
1. General 1.1 Main Sources of Law
effectively invalidated the long-standing practice of “30+30+30” lease structures. The recent shift in the legal framework governing leasehold structures is occurring alongside increased regulatory oversight of corporate entities. Authorities are placing greater scrutiny on company frameworks, particularly those suspected of using Thai nominees to facilitate free - hold land ownership by foreigners. From an economic perspective, the Bangkok condo - minium sector continues to see a downward trend in new project launches. This slowdown is largely driven by persistent market challenges, including high levels of household debt, elevated mortgage rejection rates, and a substantial surplus of unsold developer inven - tory. 1.3 Proposals for Reform With regard to environmental law, the previously pro - posed changes for Phuket were enacted in December 2024. These regulations now permit private develop - ment on land at altitudes between 80 and 140 metres above mean sea level, which was previously restrict - ed. However, such developments are subject to cer - tain density controls, including a six-metre building height cap and a requirement that 70% of the land parcel remains as green space. In Bangkok, the Bangkok Metropolitan Administration (BMA) is advancing the fourth revision of its compre - hensive city plan, which is now scheduled for enact - ment in 2027. Significant updates include a 23% expansion of medium-density “orange zones” and the removal of height limits for certain high-rise devel - opments located within 800 metres of mass-transit interchanges.
Thailand is a civil law country. Therefore, although Thai Supreme Court opinions have a strong persua - sive value, the source of all law in all areas, including real estate, is statutory. Civil and Commercial Code The Civil and Commercial Code (CCC) is perhaps the single most important law applicable to real estate in Thailand. Besides governing contracts, the CCC also creates ownership of immovable property and dictates how it may be transferred. It also creates and controls the various rights that may be registered over immovable property, such as mortgage, lease, super - ficies, usufruct, charge and servitude. Land Act The Land Act creates and controls the various titles of use and ownership of land. Condominium Act The Condominium Act creates a licensed develop - ment in which condominium units may be owned on a freehold basis and regulates the relationships between the owners. Land Allocation Act The Land Allocation Act does the same with respect to land, or land with a house on it. Land Use Laws Thailand’s three main land use laws are: • the Enhancement and Conservation of National Environmental Quality Act, which restricts land use in certain ways in various areas; • the Town and City Planning Act, which controls what may be built and where; and • the Building Control Act, which permits and dic -
2. Sale and Purchase 2.1 Categories of Property Rights
tates the requirements for structures. 1.2 Main Market Trends and Deals
There are five main real estate titles. The chanote is one of only two true ownership titles in Thailand and is issued for land. The second is the Condominium Unit Title issued for a condominium unit. There are also three possessory rights title documents for land. In order of preference they are:
The Thai real estate sector continues to navigate the impact of Supreme Court Judgment No 4655/2566. By ruling that pre-arranged, long-term lease renew - als violate the Civil and Commercial Code, the Court
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