Property Mortgages in Thailand. Mortgages are the principal form of real-estate security in Thailand. They create a real right in favor of a creditor and, when properly documented and registered, give the lender priority against other claimants. This guide explains how Thai mortgages are created and registered, the different mortgageable interests (land, structures, leaseholds, condo units), enforcement and priority rules, typical fees and recent policy shifts that affect lending, plus practical due-diligence and risk-management steps for borrowers and lenders.
Under Thai law a mortgage is a contract by which immovable property (or rights over immovable property) is assigned as security for an obligation. The mortgagee obtains a real right that runs with the land and — once registered at the local Land Department — gives constructive notice to third parties. For lenders, registration is the decisive act that converts a private security agreement into a public, enforceable right against later purchasers and creditors.
Common mortgage collateral in Thailand includes:
Freehold land (chanote) — the preferred security because chanote titles show precise survey coordinates;
Condominium units — frequently mortgaged and registrable at the Land Department;
Leasehold interests — when freehold ownership is restricted (e.g., foreign ownership constraints), lenders often take security over the lease term;
Rights and business assets — mortgages can secure obligations of a third party, and multiple properties may secure the same loan. The Civil and Commercial Code allows flexibility so long as statutory formalities are respected.
Draft the mortgage deed — typically in Thai (or bilingual with Thai prevailing). The deed must state the secured amount (or maximum) in Thai currency.
Assemble supporting documents — original title deed, ID/passport of parties, company documents for corporate mortgagors, power of attorney (if used), and an up-to-date title extraction from the Land Department.
Execute and notarize where required (especially if any party signs abroad).
Submit to the Land Department where the property is located and pay registration fees and any stamp duty. Registration is performed at the relevant Land Office and the back of the title will record the mortgage entry (date, parties, amount). Registered mortgages are publicly visible on the title.
Historically the registration fee for a mortgage has been 1% of the mortgaged amount (subject to statutory caps) plus stamp duty (0.05% in many cases). However, the Thai government has in recent years introduced temporary stimulus measures that drastically lower transfer and mortgage registration fees for eligible transactions (e.g., 0.01% on certain transfers and mortgage registrations under limited programs). These relief measures are temporary and target specific categories — check the Land Department / Royal Gazette for current applicability to your transaction.
Priority among competing security interests generally follows registration order: first registered mortgage bites first. Lenders commonly insist on sole first-priority registration or intercreditor/subordination agreements when junior security is permitted. Because registration is decisive, an unregistered security is weak against a later bona-fide purchaser or registrant.
Thailand’s enforcement route for mortgages is predominantly judicial. The mortgagee must normally issue a written notice to the mortgagor fixing a reasonable time to perform (practice and statute commonly treat 60 days as a reasonable minimum), and if the borrower fails to cure the default the mortgagee may file suit for seizure and public auction of the mortgaged property. The courts supervise the sale and distribute proceeds according to priority. Contract terms that would allow the mortgagee to seize ownership directly or sell outside the statutory process are invalid.
There have been legislative and procedural updates (notably amendments implemented around 2014 and ongoing practice refinements) that refine timelines and sale procedures, so lenders must plan their enforcement playbook with Thai counsel early.
Good due diligence reduces enforcement friction:
Title search: inspect the original title at the Land Office and obtain a current extract showing encumbrances. Check the back of the deed for prior entries.
Survey and boundaries: for land, compare the registered cadastral plan to physical boundaries; engage a licensed surveyor where there’s any doubt.
Corporate checks: for company mortgagors, verify board resolutions, authorized signatories, share registers and any corporate encumbrances.
Valuation: use a licensed valuer to assess market value and replacement cost; lenders typically underwrite to a conservative loan-to-value (LTV) ratio.
Environmental & planning: for development land confirm zoning, planning consent and risk of public encumbrances.
Tax and title history: ensure all land and building taxes and dues are paid and check for pending tax attachments or court liens.
Foreigners cannot own freehold land in Thailand (with limited exceptions), so lenders often rely on mortgageable alternatives: mortgage of leaseholds, condominium units (where foreigners may own units), or security over corporate shares (with care for anti-circumvention rules). Banks also require clear foreign-exchange documentation and may insist on larger down payments, local guarantors, or shorter amortization schedules for non-resident borrowers. Confirm bank policy early when structuring finance for a foreign buyer.
Policy can materially affect mortgage availability. In response to property-sector weakness and high household debt, the Bank of Thailand and the government have at times relaxed loan-to-value (LTV) and related lending constraints to stimulate activity (including temporary measures in 2025 that increased LTV allowances). Such regulatory moves improve credit access but lenders still underwrite prudently given household-debt and macro risks. Always verify current BOT guidance before modelling financing or accepting assumed LTVs.
Don’t rely on photocopies: insist on original title inspection at the Land Office.
Register promptly: a signed mortgage not lodged promptly may be displaced by a later registrant.
Be careful with informal security: agreements that aren’t registered or that attempt to bypass foreclosure rules are vulnerable or void.
Plan enforcement logistics: judicial sale is slower than power-of-sale regimes in some jurisdictions — structure cashflows, covenants and rescue options accordingly.
Mortgages in Thailand are powerful and protective for lenders when documentation, registration and enforcement procedures are followed carefully. Registration at the Land Department, an enforceable mortgage deed drafted in accordance with the Civil and Commercial Code, conservative valuation and title checks, and a realistic enforcement strategy (including judicial sale timelines) are the pillars of sound mortgage lending. Recent temporary fee relief and periodic LTV easings can alter the cost and availability of mortgage finance — but they do not change the fundamental need for good legal and technical due diligence. If you plan to lend against or borrow with Thai real estate, coordinate early with experienced local counsel, a licensed valuer and a Land Department specialist to reduce risk and avoid costly delays.