Land Department ordered to verify source of funds before forced sales in nationwide nominee crackdown

In the latest development following our previous coverage of authorities targeting foreign-linked land purchases, Thailand's scrutiny of foreign property ownership has taken a concrete new step. The Land Department has now been ordered to strictly investigate the source of funds before approving forced sales of nominee-held properties.

According to a report from Matichon (in Thai), government official Polapee has instructed the Land Department to aggressively close loopholes used by foreign buyers relying on Thai nominees. The nationwide directive mandates that all provincial land offices implement these financial checks seriously.

The order specifically emphasizes that officials must rigorously check where the money originated before a "forced sale" (บังคับจำหน่าย) can proceed. Forced sales typically occur when authorities order the disposal of land found to be held illegally through a nominee structure, and this new scrutiny ensures illicit funds are not recycled during the disposal process.

What this means for you

If you are an expat planning to buy property in Thailand—even legally permitted purchases like freehold condominiums—you should prepare for a much higher burden of proof regarding your finances. While the crackdown specifically targets illegal nominee structures for landed property, heightened administrative scrutiny at provincial land offices often spills over into all foreign transactions.

To navigate this stricter environment, foreign buyers should take the following steps:

• Document your funds: Maintain clear, unbroken paper trails showing money entering Thailand from overseas specifically for the purpose of buying property. Ensure you obtain a Foreign Exchange Transaction (FET) form from your Thai bank.
• Understand the stakes of forced sales: If a property is found to be held via an illegal Thai nominee, the state can force its sale. The new directive means the financial trail of that subsequent sale will be heavily scrutinized.
• Expect longer processing times: With land offices across all provinces ordered to conduct serious financial checks, administrative delays at the Land Department are highly likely.

We will continue to monitor how individual provincial land offices apply these new funding checks in practice.