Seller liability for defects in Thailand is the rule that makes a seller answer for a defect in the property sold. Under Section 472 of the Civil and Commercial Code, the seller is liable when the defect lowers the value of the property or its fitness for normal use or for the purpose that the contract states.
This guide takes Sections 472 to 474 and the exemption clause provisions in Sections 483 and 484 in turn, for buyers and sellers of goods, equipment and property in Thailand.
For third-party claims on the property sold, see our guide to seller liability for eviction in Thailand (Sections 475 to 482).
What is seller liability for defects in Thailand?
Seller liability for defects in Thailand arises under Section 472 when the property sold has a defect that lowers its value or its fitness for normal use or for the purpose that the contract states. The seller answers for the defect whether or not the seller knew of it.
Sections 472 to 474 form Part 2 of the chapter on sale, headed liability for defects. Part 3 then deals with eviction in Sections 475 to 482, and Part 4 deals with exemption clauses in Sections 483 to 485.
Which defects trigger seller liability for defects in Thailand?
Section 472 names the defect by its effect on the property. A defect triggers liability when it causes one of three outcomes: a loss of value, a loss of fitness for normal use, or a loss of fitness for the purpose that the contract states.
The wording therefore reaches beyond physical damage. For example, a defect that leaves the property unfit for the use that the parties wrote into the contract falls within the section, even if the property keeps some market value.
When is the seller not liable for a defect?
Section 473 lists three cases in which the seller is not liable. First, the seller is not liable if the buyer knew of the defect at the time of the sale, or would have known of it by exercising the care of a person of ordinary prudence.
- The buyer knew of the defect at the time of sale, or would have known with ordinary care.
- The defect was apparent at delivery, and the buyer accepted the property without reservation.
- The seller sold the property at a public auction.
The second case turns on delivery. A buyer who sees an apparent defect at delivery and accepts the property without reservation loses the claim. Accordingly, the buyer’s conduct at the moment of delivery matters as much as the defect itself.
The third case covers public auctions. Buyers at auction therefore take the property without the protection of Section 472. Our guide to buying property at auction in Thailand covers that route.
How long does a buyer have to sue the seller for a defect?
Section 474 bars a suit for liability for defects once one year has passed from the time the buyer discovered the defect. The year runs from discovery, not from the date of the contract or the date of delivery.
This period sits in the sale provisions themselves. For the wider rules on prescription, see our guide to the statute of limitations in Thailand.
Can a contract exclude seller liability for defects in Thailand?
Yes, to a degree. Section 483 allows the parties to a sale to agree that the seller is not liable for defects or for eviction. Section 484 then limits that clause: an exemption clause does not relieve the seller of the duty to refund the price, unless the parties state otherwise.
Separately, Section 373 of the Code makes void an advance agreement that exempts a debtor from liability for the debtor’s own fraud or gross negligence. Sale contracts that carry an exemption clause deserve a reading against all three sections.
Seller liability for defects in Thailand at a glance
| Question | Section | Rule |
|---|---|---|
| When is the seller liable? | 472 | The property has a defect that lowers its value or its fitness for normal use or for the contract purpose |
| Does the seller’s knowledge matter? | 472 | No. The rule applies whether or not the seller knew of the defect |
| When is the seller not liable? | 473 | The buyer knew or should have known; the defect was apparent and the buyer accepted without reservation; sale at public auction |
| What is the time limit for suing? | 474 | No suit once one year has passed from discovery of the defect |
| Can the contract exclude liability? | 483 | The parties may agree that the seller is not liable for defects or eviction |
| Does an exclusion clause stop a refund of the price? | 484 | No, unless the parties state otherwise |
| Is there a limit on advance exclusions? | 373 | An advance exemption for the debtor’s own fraud or gross negligence is void |
Sections 472 to 474 define the liability, the exemptions and the time limit. They do not themselves list remedies such as repair or a price reduction. Separate legislation on defective consumer goods is the subject of our guide to the Thailand lemon law.
For the full Thai text of these sections, see the Office of the Council of State. The Royal Gazette publishes the Code and its amendments at ratchakitcha.soc.go.th. Sale and supply agreements form part of the work of our contract lawyers in Thailand.
Seller liability for defects in Thailand: frequently asked questions
Is a seller liable for a defect that the seller did not know about?
What if the buyer accepted the property despite an apparent defect?
Does seller liability for defects apply to goods bought at auction?
How long does the buyer have to bring a claim for a defect?
Can a sale contract say that the seller is not liable for defects?
Conclusion
Sections 472 to 474 set a clear frame: liability for a defect that lowers value or fitness, three exemptions in Section 473, and a one-year bar from discovery in Section 474. Sections 483 and 484 then decide how far a contract can move that frame. Therefore, a buyer or seller should test a sale against these sections before delivery and before signing any exemption clause.
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