Yes, this is absolutely possible and, as in Switzerland, a common method of securing loans related to real estate. If you lend money to a private individual, you can secure the loan through a mortgage, which is officially registered in the Thai land register at the competent Land Office.

Here is an overview of how it works and what you should pay attention to:

1. The Legal Instrument: The Mortgage

In Thailand, a mortgage is established under the Civil and Commercial Code (CCC). In this arrangement, a property, such as land or a house, serves as security for the fulfilment of an obligation.

Requirement: There must be a valid loan agreement.

Registration: In order for the mortgage to be legally binding against third parties, it must be made in writing and registered at the local Land Office.

Ownership: Unlike other forms of security, the debtor remains the owner and in possession of the property and may continue to use it.

2. The Procedure at the Land Office

You and the borrower must go together to the competent Land Office. There, the original title deed, usually a Chanote, must be presented.

Note on the back of the Chanote: On the back of the Chanote, it will be recorded that the land has been mortgaged in your favour as the creditor.

Fees: A government fee is payable upon registration. This is usually 1% of the mortgage value, but capped at a maximum of THB 200,000.

3. Important Differences: Mortgage vs. Kai Faak

In Thailand, instead of a mortgage, a “Kai Faak,” a sale with the right of redemption, is sometimes proposed. In this case, ownership is transferred to you immediately, and the debtor has the right to buy the property back within a specified period.

Advantage for you: You are already the owner if the debtor fails to pay.

Disadvantage for the debtor: There is a higher risk and higher taxes and fees, approximately 5% instead of 1%.

Restrictions on land ownership: As a foreigner, you are generally not allowed to own land in Thailand. 

What You Need to Consider

Topic	Description
Interest rate	Private individuals may charge a maximum interest rate of 15% per year. Anything above this is illegal and may result in the entire interest claim becoming void.
Language	Contracts at the Land Office are in Thai. You should definitely obtain a certified translation or consult a Thai lawyer to carefully review the content.
Enforcement	If the debtor fails to pay, you cannot simply “keep” the property. As a rule, enforcement must proceed through a court auction, unless special contractual arrangements have been made.

Important Note

Since foreigners are generally not allowed to own land in Thailand, registering a mortgage can be a possible way to secure your money without violating land ownership laws. In the event of insolvency or non-payment, you may have a claim to the proceeds from the sale of the land.