Public auctions held by the Legal Execution Department, the central enforcement authority under the Ministry of Justice, are one of the most overlooked entry points into the Thai real-estate market. The properties offered at these auctions, drawn from defaulted mortgages, bankruptcy estates, and assets seized in money-laundering cases, regularly trade at prices well below the open-market level for comparable units. The trade-off is a procedural and legal framework that punishes the unprepared bidder and, in the case of foreign buyers, layers in restrictions from the Land Code and the Condominium Act on top of the auction rules themselves.
This guide is built from the Legal Execution Department's publications, the relevant Ministerial Regulations, the Civil Procedure Code as amended by Act No. 30 B.E. 2560 (2017) and the Section 309 quater amendment of B.E. 2558 (2015), and the Condominium Act B.E. 2522 as amended. It walks through the legal basis of the auction, the documents and deposits required to bid, the price-reduction mechanism that often makes a third or fourth auction the most attractive, the title-transfer mechanics at the Land Office afterwards, and the points at which a foreign bidder needs to plan ahead.
The Legal Basis of Public Auctions in Thailand
Public auctions of seized property are conducted under the authority of Title II of Book IV of the Civil Procedure Code, which regulates compulsory execution following a final court judgment. After a judgment creditor obtains a writ of execution, the Legal Execution Department seizes the judgment debtor's movable and immovable property and offers it for sale by public auction in order to satisfy the judgment debt, with the surplus, if any, returning to the debtor. The same mechanism is used in bankruptcy proceedings under the Bankruptcy Act B.E. 2483 (1940) and in the disposal of property forfeited under the Anti-Money Laundering Act B.E. 2542 (1999).
The 2017 amendment to the Civil Procedure Code (Act No. 30 B.E. 2560) re-numbered and modernised the auction sections. The auction rules now sit principally in Sections 331 to 335. Section 331 confirms that the Legal Execution Department may conduct auctions on weekends and outside office hours without prior court permission. Section 333 allows an interested person, including the bidder, the debtor, or the creditor, to file an objection to the conduct of the auction within fifteen days. The earlier Section 309 quater, added in 2015, is the rule that has done the most to make condominium auctions attractive to private buyers, because it relieves the winning bidder of the previous owner's outstanding common-area maintenance fees and fines.
Both Thai citizens and foreign nationals may register as bidders. Foreign participation, however, must comply with the Land Code Act B.E. 2497 (1954) for land, and with the Condominium Act for condominium units. Those rules are not waived merely because the sale is conducted under a court order. Our team at Juslaws & Consult routinely advises foreign buyers on these intersections under our Property & Investment practice.
Where to Find Auction Listings
The Legal Execution Department publishes its public auction announcements (ประกาศขายทอดตลาด) on its central listings portal at asset.led.go.th, with separate calendars by execution office. The provincial offices each maintain their own announcement boards as well. Each announcement specifies the case number, the type of property (condominium, land with structure, vacant land, factory, or movable asset), the title-deed details, the appraised value, the date and venue of the sale, the deposit required, and any encumbrances or warnings. The announcement is the contract. Bidding conditions printed in the announcement bind the winning bidder, so reading the document end to end before the sale day is the single most important due-diligence step.
The Department also operates an e-Service portal for online registration, deposit submission, and remote bidding in selected provinces, which has progressively replaced cash-only attendance for higher-value lots.
Pre-Auction Due Diligence
Property sold at auction is sold on an as-is basis. The Legal Execution Department offers no warranty as to physical condition, occupancy, or hidden encumbrances beyond what is disclosed in the announcement. The bidder must conduct independent due diligence in advance. A complete pre-auction file should cover, at a minimum, the title deed (chanote, นส.4), the land-office encumbrance certificate, the building permit, any registered leases, the condominium juristic person's outstanding-fee report where applicable, a physical inspection of the site, a check of current occupancy and any squatter or tenant in possession, and confirmation of the appraised value used to set the starting bid.
For a condominium unit specifically, the buyer must also verify the foreign-quota status under Section 19 of the Condominium Act if a foreign buyer intends to register the unit in his or her own name. The 49 percent aggregate foreign-ownership ceiling per building applies regardless of whether the unit is acquired through a private sale or at a public auction. A unit located in a building that has already exhausted its foreign quota cannot be transferred to a foreign winning bidder in a foreign-quota slot, and the bidder will be forced either to register the unit under the 51 percent Thai quota through a Thai counterparty or to forfeit the deposit. Our Corporate Due Diligence team routinely runs this check before our clients commit a deposit.
Who May Register as a Bidder
Both Thai nationals and foreign nationals may register, in person or through a duly authorised attorney. Juristic persons, both Thai and foreign, may also register, subject to the same land-ownership and condominium-quota restrictions that apply to a transaction in the open market.
The identification documents required at registration are, in summary, a Thai national identity card or a passport for an individual bidder, with a certified true copy of each page used; a Power of Attorney with a 30 baht duty stamp affixed under the Revenue Code, plus the principal's and the attorney's identity documents, where the bidder appoints a proxy; and, for a juristic person, a certified company affidavit (หนังสือรับรอง) issued by the Department of Business Development not more than one month before the auction date, the authorised director's identity documents, and the proxy's documents if applicable. A foreign juristic person must produce equivalent corporate certificates duly notarised and legalised, accompanied by certified Thai translations.
Bid Deposit Schedule
To register as a bidder for a lot whose appraised value is at least 500,000 baht, the bidder must lodge a bid deposit before the auction starts. The deposit is set out in a Ministerial Regulation under the Civil Procedure Code and is calibrated to the appraised value of the lot. The current schedule applied by the Legal Execution Department is the following.
| Appraised value of the lot (THB) | Required bid deposit (THB) |
|---|---|
| Up to 500,000 | 5 percent of the appraised value, minimum |
| More than 500,000 up to 1,000,000 | 50,000 |
| More than 1,000,000 up to 3,000,000 | 150,000 |
| More than 3,000,000 up to 5,000,000 | 250,000 |
| More than 5,000,000 up to 10,000,000 | 500,000 |
| More than 10,000,000 up to 20,000,000 | 1,000,000 |
| More than 20,000,000 up to 50,000,000 | 2,500,000 |
| More than 50,000,000 up to 100,000,000 | 5,000,000 |
| More than 100,000,000 up to 200,000,000 | 10,000,000 |
| Above 200,000,000 | As fixed by the Director-General or his delegate |
The deposit may be lodged in cash, by cashier's cheque drawn on a Thai bank in favour of the relevant execution office, by an unconditional bank letter of guarantee, or, in offices that have rolled out the EDC system, by an EDC card payment at the venue. A losing bidder receives the deposit back at the close of the session. A winning bidder's deposit is credited toward the purchase price. If the winning bidder fails to complete payment within the deadline set in the announcement, the deposit is forfeited and the bidder is liable for any shortfall in price on the renewed sale, under the principle reflected in Section 516 of the Civil and Commercial Code.
The Starting Price and How It Falls Across Successive Sales
The starting price for the first auction is determined by the Price Fixing Committee (คณะกรรมการกำหนดราคาทรัพย์) of the Legal Execution Department on the basis of the official appraisal. If no Price Fixing Committee value is available, the appraisal value set by the property valuation officer is used; failing that, the executing officer fixes a reasonable starting price.
If no bidder bids at or above the starting price at the first auction, the lot is rolled to a second sale. The starting price drops in steps that are decisive for buyers who track a particular lot through multiple sessions.
| Auction round | Starting price as a percentage of the appraised value |
|---|---|
| First auction | 100 percent (the Price Fixing Committee figure) |
| Second auction | 90 percent |
| Third auction | 80 percent |
| Fourth auction and any subsequent round | 70 percent |
This step-down structure is what gives the patient bidder an edge. A unit appraised at 5,000,000 baht that fails to clear in the first three sessions will be offered at a starting price of 3,500,000 baht in the fourth session and at every later session until it sells. Combined with the Section 309 quater protection on outstanding maintenance fees, this is the rule that has made fourth-round condominium auctions one of the most active corners of the secondary market.
The Auction Day, Step by Step
On the morning of the sale, registration opens at the Legal Execution Department office or at the announced venue and closes at the time stated in the announcement. The bidder presents the registration form, the identity documents, the deposit receipt, and the power of attorney where applicable. After registration, the bidder receives a numbered bidder's sign and is shown to the seating area. Registration constitutes acceptance of the bidding conditions, so refusing to bid after the hammer has fallen carries deposit-forfeiture consequences.
Before bidding starts, the executing officer reads the case number, the property details, and the sale conditions, and confirms the presence of the judgment creditor and judgment debtor. The starting price is announced. Bidders raise the bidder's sign to bid the starting price, then to bid in increments fixed by the executing officer. Bidders may bid in larger increments if they wish.
When the highest bid is reached and no further bids are made, the executing officer calls the price three times. Before the third call, the executing officer asks the judgment creditor and the judgment debtor whether either of them objects. An objection at this point can pause the sale and triggers Section 333 procedures. If there is no objection, the executing officer makes the third call and brings down the gavel. The auction is closed.
Payment and Title Transfer After the Hammer Falls
The winning bidder must pay the balance of the price within the deadline set in the announcement. For most immovable property auctions, the deadline is fifteen days from the sale date, with one extension of up to three months available on application to the executing officer for serious cause. Payment is made in cash, by cashier's cheque, or by bank transfer to the execution office's designated account. Failure to pay within the deadline forfeits the deposit and exposes the bidder to liability for any price shortfall in the renewed sale.
Once the price is paid in full, the executing officer issues a Notice to Effect Transfer (หนังสือโอนกรรมสิทธิ์) addressed to the relevant Land Office. The buyer presents this notice at the Land Office together with the title deed, the buyer's identity documents, and, in the case of a foreign buyer of a condominium unit, the documents listed in the next section. The Land Office registers the transfer of ownership in the buyer's name and issues an updated title deed.
The taxes and fees payable at the Land Office on a transfer following a public auction are the standard conveyancing items. The 2 percent transfer fee is calculated on the higher of the auction price and the appraised value, and is paid by the buyer unless the announcement states otherwise. Specific Business Tax of 3.3 percent or stamp duty of 0.5 percent, as applicable, and any withholding tax, are deducted from the auction proceeds before they are released to the judgment creditor; the buyer is not normally liable for these as a direct out-of-pocket payment.
Foreign Buyers: What Changes
The auction does not relax the standard property-ownership rules for foreign nationals. Three categories warrant separate treatment.
Land
Section 86 of the Land Code Act prohibits foreign individuals from owning land in Thailand, except where a treaty grants the right or a Ministerial approval is given under Section 96 bis to a foreign investor who has imported at least 40 million baht into Thailand for investment in approved categories, with land use limited to one rai for residential purposes. No general treaty exception currently applies. A foreign winning bidder of a land lot at a public auction will therefore not, in practice, be able to register the land in his or her own name and will be required to nominate a Thai juristic person, a Thai national, or a treaty-eligible structure as the registered owner. Attempting to bid on land for personal name registration is the most common cause of forfeited deposits among foreign bidders. Our Purchasing Land in Thailand guide explains the lawful structures.
Condominium Units
A foreign individual may acquire a condominium unit at auction in his or her own name, provided that, at the time of registration of the transfer, the unit fits within the 49 percent foreign-ownership quota of the building under Section 19 of the Condominium Act, and provided that the funds used to pay the auction price are remitted from outside Thailand in foreign currency and converted to Thai baht in Thailand. A Foreign Exchange Transaction Form (FETF, formerly Tor Tor 3), evidencing the inward remittance of an amount equal to or greater than the auction price, must be obtained from the Thai bank that received the funds and presented to the Land Office on the transfer date.
The condominium juristic person must issue a Letter of Foreign Quota Confirmation showing that the unit can be registered as a foreign-owned unit. If the juristic person cannot issue this letter because the building is at quota, the foreign buyer cannot register the unit in his or her own name even after winning the auction. This risk should be checked, and ideally confirmed in writing by the juristic person, before the deposit is lodged. Our Purchasing a Condominium in Thailand guide covers the underlying framework.
Villas, Houses, and Mixed Lots
An auction lot consisting of a house or villa together with land cannot be registered to a foreign individual for the same reason that a bare land lot cannot. A foreign buyer who wants to acquire only the structure may, in some cases, take the building under a separate lease structure or a long-term registered lease (up to 30 years under Section 540 of the Civil and Commercial Code). The mechanics are technical and require pre-auction structuring. Our Purchasing a Villa in Thailand page describes the lawful options.
Outstanding Maintenance Fees and the Section 309 Quater Protection
One of the most important reforms for condominium auction buyers is Section 309 quater of the Civil Procedure Code, added by the amendment of B.E. 2558 (2015). Before the executing officer holds the sale, the officer must notify the condominium juristic person of the upcoming auction. The juristic person has thirty days to report any outstanding common-area fees, fines, and water or electricity charges attributable to the unit. After the sale, those reported amounts are paid out of the auction proceeds, with priority over the mortgage creditor's claim. The winning bidder takes the unit free of those reported debts. The buyer is no longer required to obtain a debt-clearance certificate from the juristic person before registering the transfer at the Land Office, which removed one of the historical bottlenecks of post-auction transfers.
The protection runs only to debts that the juristic person reports within the thirty-day window. A buyer who has any concern about a juristic person's diligence should ask the executing officer for a copy of the juristic person's response on file and verify it before paying the balance.
Objecting to the Conduct of an Auction
Section 333 of the Civil Procedure Code, as renumbered by the 2017 amendment, allows a person with an interest in the auction, including the bidder, the judgment creditor, the judgment debtor, or a third-party claimant, to file a written objection within fifteen days of acknowledging the conduct of the sale. Common grounds include a starting price that does not reflect the appraised value, irregularities in the bidding (collusion, intimidation), or an undisclosed encumbrance affecting the title. An objection that succeeds can result in the sale being set aside and the deposit returned. An objection that fails leaves the sale standing and the bidder bound to complete. Disputes of this kind fall within our Civil Litigation practice and our Property & Real Estate Disputes team.
Indicative Cost Build-Up for a Condominium Auction Purchase
For a foreign buyer winning a 5,000,000 baht condominium unit at the third auction round (starting price 80 percent of the 5,000,000 baht appraisal, that is 4,000,000 baht, hammered down at the starting price), the indicative cost ledger looks like this.
| Item | Indicative amount (THB) | Notes |
|---|---|---|
| Bid deposit lodged at registration | 250,000 | From the deposit table; credited to price |
| Balance of auction price within 15 days | 3,750,000 | Cashier's cheque or bank transfer |
| Land Office transfer fee (2 percent) | 80,000 to 100,000 | On the higher of price or appraised value |
| Specific Business Tax or stamp duty | Deducted from proceeds | Borne by the seller side, not by the buyer |
| FETF inward remittance | 4,000,000 (foreign currency equivalent) | Required for foreign-quota registration |
| Outstanding common-area fees | Paid from the proceeds, not by the buyer | Section 309 quater protection |
| Legal fees, notary, translations | By engagement | Pre- and post-auction representation |
The numbers move with the appraisal, the round at which the unit clears, and the building's foreign-quota status. The point is that the all-in cost is highly predictable once the announcement is read carefully.
Working with Counsel Before the Auction
Pre-auction representation is what turns an auction lot into a clean title. A typical engagement covers a title and encumbrance review at the Land Office, a foreign-quota check with the condominium juristic person, a physical inspection brief to the buyer, drafting the registration documents and any power of attorney, attending the auction, and post-auction transfer at the Land Office including the FETF documentation. Our Property & Investment team and our Debt Collection & Repossession team handle both sides of these auctions, for buyers and for judgment creditors. A short first call is normally enough for us to confirm whether a target lot is a serious candidate or a deposit waiting to be forfeited.
Frequently Asked Questions
Can a foreigner buy land at a Legal Execution Department auction?
Not in his or her own name, save in the narrow exception of Section 96 bis of the Land Code (40 million baht of qualifying investment, ministerial approval, one rai of residential land). For all practical purposes, a foreign individual bidding on land must do so through a lawfully structured Thai entity or under a registered long-term lease arrangement set up before the auction. Bidding on land without that structure in place is the leading cause of foreign-bidder deposit forfeitures.
Can a foreigner buy a condominium at a Legal Execution Department auction?
Yes, provided that the unit fits within the 49 percent foreign-ownership quota of the building at the time of registration under Section 19 of the Condominium Act, and that the auction price is paid with funds remitted from outside Thailand in foreign currency, supported by a Foreign Exchange Transaction Form (FETF) issued by the receiving Thai bank. Confirm the foreign-quota status with the condominium juristic person before lodging the deposit.
How is the starting price set, and how does it change across rounds?
The Price Fixing Committee of the Legal Execution Department sets the first-round starting price by reference to the official appraisal. If the lot does not sell, the second-round starting price is 90 percent of the appraisal, the third-round starting price is 80 percent, and the fourth and any subsequent round opens at 70 percent. The price floor remains at 70 percent for as many rounds as it takes to find a buyer.
What deposit do I need to register as a bidder?
Any lot with an appraised value of at least 500,000 baht requires a deposit on a sliding scale set by Ministerial Regulation, ranging from 50,000 baht for lots up to one million to 10,000,000 baht for lots between 100 and 200 million. Lots above 200 million baht use a deposit fixed by the Director-General. A losing bidder gets the deposit back at the close of the session; a winning bidder has it credited to the purchase price.
How long do I have to pay the balance after winning?
For most immovable-property auctions, the balance is due within fifteen days of the sale, payable in cash, by cashier's cheque, or by bank transfer to the executing office's designated account. The executing officer may grant one extension of up to three months on application for serious cause. Missing the deadline forfeits the deposit and exposes the buyer to liability for any price shortfall on the renewed sale.
Will I inherit the previous owner's unpaid common-area maintenance fees?
No. Section 309 quater of the Civil Procedure Code, added in 2015, requires the executing officer to notify the condominium juristic person before the sale; the juristic person reports the outstanding fees within thirty days; those amounts are paid out of the auction proceeds with priority over the mortgage creditor; and the winning bidder takes the unit free of the reported debts. The historical requirement to obtain a juristic-person debt-clearance certificate before transfer was abolished by the same amendment.
Do I need to attend the auction in person?
No. A bidder may appoint an attorney by Power of Attorney with a 30 baht duty stamp, accompanied by certified true copies of the principal's and the attorney's identity documents. For higher-value lots, several execution offices now accept remote bidding through the e-Service portal at led.go.th. Foreign bidders frequently appoint Thai counsel to attend on their behalf to manage on-the-day registration, deposit lodgement, and bidding strategy.
What due diligence should I do before the auction?
At a minimum: title deed and encumbrance certificate from the relevant Land Office; physical inspection of the property, ideally with photographs and a check of current occupancy; for condominium units, a Letter of Foreign Quota Confirmation from the juristic person and a maintenance-fee status report; a check of the appraised value used to set the starting bid; and a review of the Public Auction Announcement clause by clause. The announcement is binding once you register, and warnings printed in it are deemed disclosed.
Who pays the Land Office transfer fees?
The 2 percent transfer fee is paid by the buyer at registration, calculated on the higher of the auction price and the official appraised value. Specific Business Tax (3.3 percent) or stamp duty (0.5 percent) and any withholding tax are normally deducted from the auction proceeds before release to the judgment creditor; the buyer does not pay these out of pocket. The announcement should always be read for any allocation that varies from this default.
Can I object if I believe the auction was conducted unfairly?
Yes. Section 333 of the Civil Procedure Code allows an interested person, including a bidder, the judgment creditor, the debtor, or a third-party claimant, to file a written objection with the executing officer within fifteen days of becoming aware of the conduct of the sale. Common grounds include collusion among bidders, a starting price that does not reflect the appraised value, or an undisclosed encumbrance. A successful objection can result in the sale being set aside.
Can Juslaws & Consult represent me through the entire process?
Yes. Our standard auction-buyer engagement covers pre-auction title and encumbrance review, foreign-quota verification with the juristic person where applicable, physical inspection coordination, drafting and notarisation of the Power of Attorney, attendance at the auction, post-auction balance payment management, and registration at the Land Office, including FETF preparation for foreign-quota condominium transfers. We also represent judgment creditors at the same auctions and act in the related Civil Procedure Code proceedings.
