Section Code: 0728 - 0735

Thai Civil and Commercial Code


Chapter 4: Enforcement of Mortgage

Section 728. Notice to Debtor prior to Court Action

For enforcement of mortgage the mortgagee must notify the debtor on writing to perform his obligation within a reasonable time to be fixed in the notice. If the debtor fails to comply with such notice, the mortgagee may enter an action in Court for a judgment ordering the mortgaged property to be seized and sold by public auction.

Section 729. Additional Reasons to foreclose on mortgage

In addition to the remedy provided in the foregoing section, the mortgagee is entitled to claim foreclosure of the mortgage, subject to the following conditions:

  1. The debtor has failed to pay interest for five years;
  2. The mortgagor has not satisfied the Court that the value of the property is greater than the amount due; and
  3. There are no other registered mortgages or preferential rights on the same property.

Section 730. When Same Property is mortgaged, earlier mortgagee is satisfied first

When one and the same property is mortgaged to several mortgagees, they rank according to the respective dates and hours of registration, and the earlier mortgagee shall be satisfied before the later one.

Section 731. A later mortgagee cannot sue earlier mortgagee

A later mortgage cannot enforce his right to the injury of an earlier one.

Section 732. Distribution of Proceeds from Sale

The net proceeds of the auction shall be distributed to the mortgagees according to their ranks, and the surplus, if any, shall be delivered to the mortgagor.

Section 733. If value of property is less than the amount due, the debtor is not liable for difference.

If the estimated value of the property, in case of foreclosure, is or the net proceeds, in case of auction, are less than the amount due, the debtor of the obligation is not liable for the difference.

Section 734. Several Properties Mortgaged for same obligation

When several properties have been mortgaged to secure one and the same obligation and no order has been specified, the mortgagee may enforce his right against all or any of the properties; provided that he does not do so upon more properties than is necessary for the satisfaction of his right.

If the mortgagee enforces his right against all properties at the same time, the burden of the obligation is divided according to the respective value of the properties, except where the amounts of the mortgages have been specified for each property, in which case the division is made according to the respective amounts of the mortgages on such properties.

If, however, the mortgagee enforces his right against one of the properties, the mortgagee may receive performance of his entire obligation from such property. In that case the mortgagee who is next in rank shall be considered as being subrogated to the prior mortgagee and may enforce the mortgage in his stead to the amount which the prior mortgagee would have received from the other properties according to the provisions of the foregoing paragraph.

Section 735. 1 Month Written Notice Prior to Enforcement

When the mortgagee intends to enforce the mortgage against the transferee of a mortgaged property, the latter must be served with a written notice one month before the enforcement of the mortgage.