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April 29, 2011

Juristic Entities and Mortgage of Immovable Property

Bangkok Post, Corporate Counsellor Column

Registration of mortgage of immovable property is a popular method for creditors to obtain security for a debt, especially in instances of borrowing money from a bank, financial institution, or juristic person (a limited company). Until fairly recently, borrowers often faced difficulties in getting a loan from a juristic entity (both local and foreign companies), as well as a bank or financial institution other than those established and incorporated in Thailand. These difficulties were usually due to the rather complicated procedure of registering receipt of mortgage, which is required to ensure validity and enforceability under Thai law. This article looks at the Financial Institution Business Act’s new definition of “credit foncier business,” which should help to streamline the process.

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