What is a mortgage?
A mortgage is a document that is normally used to
support a loan agreement. The document allows the
lender to foreclose on a property to be paid for a
loan that a debtor has defaulted on. In Thailand,
a mortgage agreement must be in Thai language, registered
and meet other requirements of Thai law.
How
is a land mortgage registered?
A
land mortgage must be executed in writing and registered
with a relevant office of the Land Department. However,
a land mortgage does not cover the rights over buildings
built on the land after the mortgage date, unless
it has been explicitly stated in the mortgage agreement.
Buildings and other immovable property may be mortgaged
separately from the land.
Where
can I register mortgages for buildings and immovable
property?
Registrations of mortgages of buildings and other
immovable property can be performed at a local District
(amphur) Office if the property is located outside
Bangkok. If there is a Land Department office in the
province where the land is located, however, this
office will undertake the duty of registration.
What
documents do I need to register my mortgage at the
Land Department?
The
documents required at the Land Department vary based
on whether the lender is a foreigner, a Thai national
or company, or other juristic entity. There are several
government forms which must be completed in addition
to the private mortgage agreement.
How
does a mortgage protect me?
A
mortgage allows the lender to foreclose on land if
a debt on the land is unpaid. The land will typically
be sold by public auction. If the funds realized from
a sale are not sufficient to pay the underlying loan,
a deficiency judgment for the unpaid amount may be
obtained.
