Co-ownership in Thailand exists when one property belongs to several persons together, each holding a share in the whole. Sections 1356 to 1366 of the Thai Civil and Commercial Code govern how co-owners share, manage, use, sell, mortgage and divide that property. These provisions are in force and apply unless another law provides otherwise.
Where the performance itself cannot be split between several parties, see our guide to indivisible obligations in Thailand.
Co-ownership shares ownership itself. Where one person should hold only the use and income of land, see our guide to usufruct in Thailand.
Possession by one co-owner, or by an outsider, can also affect co-owned land. See our guide to adverse possession in Thailand.
Section 1357 presumes equal shares. Section 1358 sets three decision thresholds: a simple majority, a majority holding at least half the value, and unanimity. Section 1361 lets each co-owner deal with its own share but requires every co-owner’s consent to sell or mortgage the whole. Section 1363 caps a no-partition agreement at ten years at a time.
What Is Co-Ownership in Thailand?
Section 1356 applies the co-ownership chapter whenever property belongs to several persons in common. The rule covers land, buildings, condominium units, vehicles and other assets held jointly by individuals, companies or heirs. Where another statute contains its own rules for a particular kind of jointly held property, that statute prevails.
Each co-owner holds an undivided share. In other words, no co-owner owns a physical part of the property until it is partitioned. Instead, every co-owner has rights over the whole, measured by the size of its share.
How Large Is Each Co-Owner’s Share?
Section 1357 presumes that co-owners hold equal shares. The presumption can be rebutted, for example by a purchase agreement or a registered document stating different shares. Because shares drive voting, fruits and costs, investors who contribute unequal amounts benefit from recording their shares expressly at acquisition.
Managing Property Under Co-Ownership in Thailand
Section 1358 presumes that all co-owners have the right to manage the property together. It then sets different thresholds for different decisions. The table below summarises them.
| Decision | Threshold under Section 1358 |
|---|---|
| Ordinary management | Majority of the co-owners |
| Acts to preserve the property | Any single co-owner, at any time |
| Material management | Majority of the co-owners who together hold at least half the value of the property |
| Change of the purpose of the property | Consent of every co-owner |
The material-management test is a double majority. A single co-owner with a large share cannot decide alone, and a majority of co-owners with small shares cannot outvote the holders of most of the value. Consequently, a written co-ownership agreement that defines “ordinary” and “material” matters reduces the room for dispute.
Can a Co-Owner Sell or Mortgage Without the Others?
Under Section 1361, each co-owner may sell its own share, mortgage it or create an encumbrance over it without the consent of the others. The whole property is different. It may be sold, pledged, mortgaged or encumbered only with the consent of all co-owners.
Section 1361 also contains a saving rule. If one co-owner deals with the whole property without the others’ consent and later becomes the sole owner, the transaction becomes valid. Lenders and buyers therefore check the consent of every co-owner before taking security over, or acquiring, the whole asset.
Practical effect for lenders and buyers
A buyer of one co-owner’s share steps into that share only. The buyer becomes a co-owner with the remaining owners and takes the share subject to the chapter’s rules on management, costs and partition. For related security rules, see our guide to the mortgage in Thailand.
Use, Fruits and Costs in Co-Ownership in Thailand
Section 1360 entitles each co-owner to use the property, provided the use does not interfere with the rights of the other co-owners. The same section presumes that each co-owner receives the fruits of the property, such as rent, in proportion to its share.
Costs follow the same measure. Under Section 1362, each co-owner must contribute, in proportion to its share, to the costs of management, taxes and duties, preservation and joint use. A co-owner who pays more than its share has a claim against the others, and Section 1365 protects that claim on partition.
Can One Co-Owner Act Against Third Parties?
Section 1359 allows each co-owner to exercise the rights arising from ownership over the whole property against third parties. A single co-owner can therefore act against a trespasser or an occupier without joining the others.
A claim to recover the property itself is subject to Section 302. That section deals with indivisible performance owed to several creditors. Accordingly, the recovering co-owner can demand return of the property only for the benefit of all co-owners, not for itself alone.
When Can Co-Ownership in Thailand End by Partition?
Section 1363 gives every co-owner the right to demand partition. Three limits apply. First, a juristic act, such as a co-ownership agreement, may exclude partition. Second, partition is not available where the co-ownership has a permanent purpose. Third, a co-owner cannot demand partition at an unreasonable time.
The exclusion by agreement has a statutory ceiling. Under Section 1363, a juristic act cannot exclude the right to partition for more than ten years at a time. Parties who want a longer lock-up must therefore renew the agreement when each period ends.
How Is Co-Owned Property Divided?
Section 1364 offers two methods: physical division of the property among the co-owners, or sale of the property and division of the proceeds. Where the co-owners cannot agree on the method, any co-owner may apply to the court.
- Physical division: the court may order the property divided in kind among the co-owners.
- Balancing payment: where the parts are unequal, the court may order a co-owner who receives more to pay money to the others.
- Sale: where physical division is impossible or would cause serious loss, the court may order a sale by auction among the co-owners or by public auction, and the proceeds are divided.
Debts and Warranties on Partition
Section 1365 protects co-owners against unpaid debts linked to the property. Where co-owners are jointly liable to a third party on a debt relating to the co-owned property, any co-owner may require, on partition, that the debt be paid from the property first or that the property be set aside as security.
The same section covers debts between co-owners. Where one co-owner owes another a debt arising from the co-ownership, the creditor co-owner may require payment from the debtor’s portion, or security over it, before the debtor receives that portion. These rights also bind a transferee or successor of the debtor’s share. Where a sale is needed, Section 1364 applies.
Finally, Section 1366 makes each co-owner liable, in proportion to its share, as a seller for the property the other co-owners receive on partition. The seller’s warranties on defects and eviction in the Civil Code therefore follow the partition. See our guide to seller liability for eviction in Thailand.
Frequently Asked Questions About Co-Ownership in Thailand
Are co-owners in Thailand presumed to own equal shares?
Can one co-owner sell the whole property?
What majority is needed for material decisions?
Can co-owners agree never to divide the property?
What happens if co-owners cannot agree on partition?
Conclusion
Sections 1356 to 1366 give co-owners a complete framework: equal shares unless shown otherwise, three tiers of decision-making, free dealing with one’s own share, unanimous consent for the whole, and a partition right that an agreement can suspend for no more than ten years at a time. Therefore, a written co-ownership agreement that records shares, decision rules and exit terms protects every party from the outset. For property matters, see our real estate lawyer services. The official Thai text is published by the Office of the Council of State.
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