Best Mortgage Lawyers in Bangkok Noi

About Mortgage Law in Bangkok Noi, Thailand

A mortgage in Thailand is a security interest over property that secures the repayment of a debt or the performance of an obligation. In practice, a mortgage is commonly registered over land, houses, and condominium units. The legal framework is national, so the same rules apply in Bangkok Noi as elsewhere in Thailand, but registration and practical procedures are handled by the Bangkok Metropolitan Land Office branch that has jurisdiction over Bangkok Noi.

Under the Thai Civil and Commercial Code, a mortgage over immovable property must be made in writing and registered with the competent official at the Land Office to be valid against third parties. The mortgage gives the lender the right to cause the property to be sold by public auction through the court process if the borrower defaults. The borrower keeps possession and use of the property during the mortgage period unless a court directs otherwise.

Mortgages are widely used for home purchases, refinancing, construction loans secured by land and building, and business borrowing secured by real estate. Fees, taxes, and formalities apply at registration, and additional consumer protections apply when a financial institution lends to an individual.

Why You May Need a Lawyer

To conduct title due diligence. A lawyer can verify the title deed type, confirm the land boundaries, identify encumbrances and servitudes, and obtain an official search from the Land Office to ensure the property can legally be mortgaged.

To structure and review the mortgage and loan documents. A lawyer can draft or review the loan agreement, mortgage deed, and ancillary documents, align repayment and interest clauses with Thai law, and flag unfair or non compliant terms.

To manage the Land Office process. Registration requires precise forms, correct descriptions, and timely submission. A lawyer can prepare the application package, arrange powers of attorney if any party is absent, and coordinate with officials at the Bangkok Metropolitan Land Office that serves Bangkok Noi.

To address family law and corporate issues. Spousal consent may be required for marital property. For companies, director authorities, shareholder approvals, and corporate seals must be in order. A lawyer can ensure compliance and avoid rejection at registration.

To navigate foreign ownership and exchange control. Foreign individuals generally cannot own land but may own condominium units and may be lenders secured by mortgage. A lawyer can advise on eligibility, funds remittance evidence, and documentary requirements.

To handle refinancing, restructuring, or subordination. Moving to a new lender or adding a second mortgage involves careful sequencing of discharges, priorities, and filings that a lawyer can plan and document.

To deal with default and enforcement. If payments are missed, a lawyer can negotiate workout solutions or, if needed, commence or defend foreclosure proceedings and coordinate with the Legal Execution Department.

Local Laws Overview

Civil and Commercial Code. Mortgages are governed primarily by sections on Mortgage, which require a written instrument and registration for immovable property. The mortgage follows the property, so a buyer takes the property subject to any registered mortgage unless it is discharged at transfer. Appropriation by the mortgagee is not allowed, and foreclosure is through a court ordered public auction.

Land Code and Department of Lands regulations. The Land Office supervises registration of mortgages over land, houses, and condominium units. Mortgage ranking is determined by the order of registration. Accurate property identifiers, measurements, and deed numbers must match the Chanote or other title document.

Condominium Act. Condominium units can be mortgaged and are registered at the Land Office with the condominium title deed and the juristic person certificate of debt free status where applicable.

Interest laws and Bank of Thailand rules. The Interest Rate Act caps contractual interest at 15 percent per year unless another law permits otherwise. Licensed financial institutions follow Bank of Thailand notifications for interest calculation, late charges, and default interest, including rules that default interest is typically calculated only on overdue principal and that certain penalty fees are restricted.

Civil Procedure and Legal Execution Department. Foreclosure requires filing in court and, if judgment is granted, sale by public auction managed by the Legal Execution Department. Timeframes vary with caseload and complexity.

Unfair Contract Terms Act and consumer protections. Standard form loan contracts must not contain unfair terms and must present key information clearly. Certain clauses that overly burden consumers may be unenforceable.

Family and matrimonial property rules. If the property is marital property, spousal consent is typically required for a mortgage. Lack of required consent can render the mortgage voidable.

Foreign ownership restrictions. Foreigners generally cannot own land, but they may own condominium units within foreign quota limits and may be mortgagees. Foreign lenders should consider foreign business licensing and exchange control reporting for cross border loans.

Business Security Act. For businesses that need to secure obligations over movable assets or certain rights, a business security agreement may be used and registered with the Department of Business Development. This is distinct from a mortgage and can sometimes be an alternative when a mortgage is not available, such as for lease rights.

Fees and taxes at registration. Typical government charges include a mortgage registration fee of 1 percent of the secured amount, capped at 200,000 baht, and stamp duty of 0.05 percent, capped at 10,000 baht. Local practices and small administrative fees can vary, so confirm with the Land Office that serves Bangkok Noi.

Frequently Asked Questions

What is a mortgage in Thailand and how does it work

A mortgage is a registered security interest over immovable property that secures a loan or obligation. The borrower keeps using the property. If the borrower defaults, the lender can ask the court to order a public auction. The lender does not automatically own the property and cannot take possession without due process.

Do I have to register a mortgage at the Land Office

Yes, for land, houses, and condominium units, the mortgage must be in writing and registered at the competent Land Office to be effective against third parties. Unregistered agreements do not create a valid mortgage over immovable property.

Which Land Office handles mortgages in Bangkok Noi

Mortgages over properties located in Bangkok Noi are registered at the Bangkok Metropolitan Land Office branch with jurisdiction over that district. Your lawyer or the property owner can confirm the correct branch when booking the appointment.

What documents are needed to register a mortgage

Commonly required items include the original title deed, identification cards and house registration books for individual parties, corporate documents and affidavits for companies, the loan and mortgage instruments in the Land Office format, spousal consent if applicable, building permits for stand alone buildings, and a power of attorney if a party cannot attend in person.

How much are the government fees

As a general guide, the mortgage registration fee is 1 percent of the secured amount capped at 200,000 baht, plus stamp duty of 0.05 percent capped at 10,000 baht, along with small administrative charges. Fees can change, so verify the current schedule with the Land Office.

Can foreigners be parties to a mortgage

A foreigner may be a lender secured by a mortgage. A foreigner may also mortgage a condominium unit that the foreigner legally owns. Foreigners generally cannot own land, so they typically cannot be mortgagors of land in their personal capacity. Cross border loans may involve exchange control and tax considerations.

Can there be more than one mortgage on the same property

Yes, multiple mortgages are allowed. Priority is determined by the order of registration. A later mortgagee ranks behind earlier registered mortgages unless the earlier mortgage is discharged or subordinated.

What happens if I default on my mortgage

The lender can issue a demand and, if payment is not made, file a case in court seeking foreclosure. If the court grants the claim, the property is sold at public auction by the Legal Execution Department, and proceeds are applied to costs, taxes, and the debt in order of priority. Timelines vary and can range from several months to more than a year.

Can I sell property that has a mortgage on it

Yes, but the buyer takes the property subject to the mortgage unless it is discharged on or before transfer. In practice, the sale closing is coordinated at the Land Office so that sale proceeds are used to pay off and discharge the mortgage, after which the transfer is registered.

How do I remove a mortgage after repayment

The lender issues a release, and both parties or their attorneys attend the Land Office to register the discharge. The Land Office endorses the title deed to show the mortgage has been canceled and returns the original title deed. A small discharge fee applies.

Additional Resources

Bangkok Metropolitan Land Office. Handles mortgage registration, title searches, endorsements, and discharge registrations for properties located in Bangkok Noi.

Department of Lands. Sets nationwide procedures and forms for title and mortgage registrations and maintains regulations that Land Offices follow.

Legal Execution Department. Conducts court ordered auctions of mortgaged properties after foreclosure judgments.

Civil Court in Bangkok. Hears mortgage enforcement and foreclosure cases arising from properties in Bangkok Noi.

Bank of Thailand. Issues rules and supervisory guidance for financial institutions on interest calculation, default interest, and fees for retail lending.

Lawyers Council of Thailand. Provides directories of licensed attorneys who can advise on property and finance matters.

Office of the Consumer Protection Board. Oversees unfair contract term issues in standard form consumer loan contracts.

Next Steps

Clarify your objective. Identify whether you are buying with finance, refinancing, lending against a property, or restructuring an existing loan.

Engage a local lawyer early. Ask for a scope that includes title due diligence, document drafting or review, fee estimates, and Land Office support for Bangkok Noi.

Gather documents. Collect the original title deed, personal or corporate IDs, marital status and spousal consent documents, loan term sheet, and any building permits or condominium paperwork.

Conduct due diligence. Have your lawyer obtain an official title search, confirm encumbrances, verify property particulars, and check that there are no legal impediments to registration.

Finalize terms. Agree on interest, repayment schedule, security amount, events of default, and prepayment rules. Ensure terms comply with Thai law and any Bank of Thailand rules that apply.

Book the Land Office. Coordinate an appointment at the appropriate Bangkok Metropolitan Land Office branch, prepare Land Office forms, and arrange powers of attorney if anyone cannot attend.

Register the mortgage. Attend the Land Office with all originals, pay the government fees, and ensure the mortgage is endorsed on the title deed. Lenders commonly hold the original title deed during the mortgage term.

After registration. Keep copies of all documents, set up payments, and monitor compliance with covenants. If you later refinance or sell, plan the discharge and new registration steps in advance.

If problems arise. Contact your lawyer promptly to negotiate with the lender, consider restructuring options, or prepare for legal action if necessary.

This guide provides general information only. For advice tailored to your situation in Bangkok Noi, consult a qualified Thai lawyer experienced in mortgage and property law.