Section Code: 0702 - 0714
Thai Civil and Commercial Code
Chapter 1: General Provisions
Section 702. Mortgage
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.
Section 703. Immovables of any kind can be mortgaged.
The following movables can also be mortgaged provided they are registered according to law:
- Ships of five tons and over
- Floating houses.
- Beast of burden
- Any other movables with regard to which the law may provide registration for that purpose.
A contract of mortgage must specify the property mortgaged.
No property can be mortgaged except by the owner for the time being.
A person whose right of ownership over a property is subject to a condition may mortgage such property only subject to such condition.
The provisions of Section 681 concerning Suretyship apply mutatis mutandis.
Section 708. Used Thai Currency in Mortgages
A contract of mortgage must contain, in Thai currency, either the sum certain or a maximum amount for which the mortgaged property is assigned as security.
Section 709. Security for Performance
A person may mortgage his property as security for the performance of an obligation by another person.
Section 710. Several Properties may be secured with multiple mortagages
The performance of one and the same obligation may be secured by the mortgage of several properties belonging either to one or to several owners.
The parties may agree:
- That the mortgagee shall enforce his right against the mortgaged properties on a specific order.
- That each property is security only for a specified part of the obligation.
Section 711. Before the Obligation is due, transfer of property is invalid
Before the obligation is due, any agreement that the mortgagee shall, in case of non-performance, become the owner of the mortgaged property or dispose of it otherwise than in accordance with the provisions concerning Enforcement of Mortgage, shall be invalid.
Section 712. Mortgage to a third person
Notwithstanding any clause in the contract to the contrary, a property mortgaged to one person may be mortgaged to another person during the continuance of the previous contract.
Section. 713. Payoff by Instalments
Unless otherwise agreed in the contract of mortgage, the mortgagor may pay off the mortgage by instalments.
Section 714. Mortgage must be written and registered
A contract of mortgage must be made in writing and registered by the competent official.