Reviewed by ThaiLawOnline, a licensed Thai law firm practising in Thailand since 2006. Thai lawyer of record: Wichuda Atthamethakon, LL.M., Thai Bar Licence 3149/2556.
Last updated on September 5, 2026
A mortgage (จำนอง, jamnong, also romanised chamnong) in Thailand is a security right over immovable property, or certain registrable movables such as ships and registered machinery, created under Sections 702 onwards of the Civil and Commercial Code and registered at the Land Office. The mortgagor keeps ownership and possession of the property; the mortgagee obtains the right, if the secured debt is not paid, to have the property sold by court order and to be paid from the proceeds ahead of ordinary creditors. Foreigners meet mortgages as condominium borrowers, as lenders to a Thai partner, and as buyers checking that a deed is unencumbered.
Table of Contents
How a mortgage works under the Civil Code
Section 702 defines the mortgage as a contract by which the mortgagor assigns property to the mortgagee as security without delivering it. Under Section 714 the contract must be in writing and registered by the competent official, which for land and condominium units means the Land Office; the mortgage is then written on the back of the chanote or condominium title. The registration states the amount secured, and Section 733 provides that if the sale proceeds fall short the debtor is not liable for the balance unless the contract says otherwise, a rule banks routinely contract out of.
Enforcement goes through the court. The mortgagee must first give the debtor written notice to pay within a reasonable period, and only then sue for an order that the property be seized and sold at public auction (Section 728). Foreclosure, where the mortgagee takes the property instead of a sale, is available only in narrow cases under Section 729. A person who mortgages property to secure someone else’s debt is liable only to the extent of that property (Section 727/1, added in 2014).
Practical points for a foreigner
Registration is done by both parties, or their attorneys under a Tor Dor 21 power of attorney, at the Land Office holding the title. The fee is 1% of the amount secured, capped at 200,000 baht, and there is no stamp duty on the mortgage itself. A foreigner may be the mortgagee: the Land Code bars foreigners from owning land, not from lending against it, so a foreigner who advances money to a Thai spouse or business partner can take a registered mortgage over their land and, on default, be paid out of the auction proceeds. What the foreigner cannot do is buy in at the auction.
As a borrower, a foreigner can mortgage a condominium unit held in their own name, and a small number of lenders offer such loans, usually at higher rates and lower loan-to-value ratios than for Thai borrowers. The common mistake among buyers is the reverse one: paying for a plot or unit without a fresh title search, then discovering a mortgage on the back page. A registered mortgage follows the property to the new owner, who must clear it or lose the property at auction. A later buyer can redeem it only by paying the full secured amount.
Mortgage compared with kaifak and pledge
| Feature | Mortgage (jamnong) | Kaifak (sale with right of redemption) | Pledge (jamnam) |
|---|---|---|---|
| Sections of the CCC | 702 onwards | 491 to 502 | 747 onwards |
| Who owns the property during the loan | Borrower | Lender, until redeemed | Borrower |
| Who holds the property | Borrower | Usually the lender | Lender |
| Registered at the Land Office | Yes | Yes, as a sale | No, movables only |
| Consequence of non-payment | Court-ordered auction | Ownership consolidates with the lender | Sale of the pledged item |
Informal lenders in Thailand prefer kaifak because it hands them the land without a lawsuit if the borrower misses the redemption date, whereas a mortgage always requires a court sale. For the borrower the mortgage is the safer instrument, and the interest is subject to the 15% per year ceiling of Section 654, above which the whole interest is forfeited. When a mortgage is repaid, the release must also be registered at the Land Office; a paid-off mortgage that is still on the deed will hold up any later sale.
Frequently asked questions
Can a foreigner get a mortgage in Thailand?
A foreigner can mortgage a condominium unit registered in their own name, and a few Thai and Singapore-linked lenders offer such loans, typically for a shorter term and a lower percentage of the price than Thai borrowers get. A foreigner cannot mortgage land, because a foreigner cannot own it, but can be the lender secured by a mortgage over Thai-owned land.
How much does it cost to register a mortgage at the Land Office?
The registration fee is 1% of the amount secured, capped at 200,000 baht. There is no transfer fee or stamp duty on the mortgage itself, and the release, once the loan is repaid, is registered for a small fixed fee.
What is the difference between a mortgage and kaifak?
Under a mortgage the borrower stays owner and the lender can only have the property sold by court order on default. Under kaifak the borrower sells the property to the lender and keeps a right to buy it back within an agreed period; if the date passes, the lender keeps the land without any court process. Kaifak is faster for the lender and far riskier for the borrower.
See also: kaifak, encumbrance on a title deed, loan agreement, suretyship, title deeds in Thailand and property guide for foreigners in Thailand.
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