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Mortgage

Glossaries

Term	Definition
Mortgage	Section 702 of the Thai Civil and Commercial code describes a mortgage is a contract whereby a person, called the mortgagor, assigns a property to another person, called the mortgagee, as security for the performance of an obligation, without delivering the property to the mortgagee. The mortgagee is entitled to be paid out of the mortgaged property in preference to ordinary creditors regardless as to whether or not the ownership of the property has been transferred to a third person. Explore more of 'Mortgage' in the Civil and Commercial Code Mortgage (Thailand) In Thailand, mortgages are commonly used to secure loans from financial institutions against immovable property. Thai banks and lenders require the mortgage to be registered at the Land Office when property is taken as security. Because foreigners are restricted from owning land in Thailand, the most practical mortgage option for a foreign buyer is for a condominium unit, which foreigners are permitted to own in freehold under the Condominium Act and can be used as collateral for financing. Thai mortgage facilities for foreigners are typically limited, may involve stricter conditions, and are offered by select institutions. Thai banks and licensed lenders require the condominium unit to be owned in freehold by the foreign buyer in their own name and registered under the Condominium Act in order to qualify for mortgage financing. Note on mortgage financing for foreigners: Mortgage financing in Thailand is generally limited for foreign buyers. Standard Thai retail home-loan products are often restricted to Thai nationals, and foreign ownership of land is prohibited. As a result, where mortgage financing is available to foreigners, it is typically confined to freehold condominium units and may be offered only through specialist or offshore bank programs, rather than ordinary domestic mortgages. ← Previous: Buying A Condo In Thailand Next: Loan Agreement (Th-En) →

Term

Definition

Section 702 of the Thai Civil and Commercial code describes a mortgage is a contract whereby a person, called the mortgagor, assigns a property to another person, called the mortgagee, as security for the performance of an obligation, without delivering the property to the mortgagee. The mortgagee is entitled to be paid out of the mortgaged property in preference to ordinary creditors regardless as to whether or not the ownership of the property has been transferred to a third person.
Explore more of 'Mortgage' in the Civil and Commercial Code

Mortgage (Thailand)

In Thailand, mortgages are commonly used to secure loans from financial institutions against immovable property. Thai banks and lenders require the mortgage to be registered at the Land Office when property is taken as security. Because foreigners are restricted from owning land in Thailand, the most practical mortgage option for a foreign buyer is for a condominium unit, which foreigners are permitted to own in freehold under the Condominium Act and can be used as collateral for financing. Thai mortgage facilities for foreigners are typically limited, may involve stricter conditions, and are offered by select institutions.

Thai banks and licensed lenders require the condominium unit to be owned in freehold by the foreign buyer in their own name and registered under the Condominium Act in order to qualify for mortgage financing.

Note on mortgage financing for foreigners:

Mortgage financing in Thailand is generally limited for foreign buyers. Standard Thai retail home-loan products are often restricted to Thai nationals, and foreign ownership of land is prohibited. As a result, where mortgage financing is available to foreigners, it is typically confined to freehold condominium units and may be offered only through specialist or offshore bank programs, rather than ordinary domestic mortgages.