Developer hid a planned expropriation: the buyer got the price back and damages
Expropriation plans for roads and rail lines are public, but few buyers think to check them. In this case the developer knew, said nothing, and had to undo the sale.
In short
- The developer knew before the sale that the land and house would be expropriated and did not tell the buyer.
- Concealment by fraud made the sale voidable. The buyer cancelled it and got back the 3,590,000 baht price with interest.
- The court also awarded the buyer's direct costs and 100,000 baht for the rise in property prices.
What happened
The buyer signed a contract to buy a house and land from the owner of a housing estate, paid the full price and received the transfer. The developer had known before the contract that the land and house were to be expropriated, and deliberately kept this from the buyer.
The rule
A contract made because one party fraudulently concealed a fact the other would have needed to know is voidable. The deceived party can cancel it. Once cancelled, it is treated as void from the start, and each side must return what it received.
Ask before you buy. Ask the district office and the Land Office whether any road, rail or other expropriation plan covers the plot or its surroundings. Ask the developer to confirm in writing that it knows of none.
What the courts decided
The Consumer Case Division of the Supreme Court, in decision No. 1808/2561, agreed with the lower courts that the developer had concealed the expropriation by fraud. The buyer had cancelled the sale, so:
- the developer had to refund the 3,590,000 baht price, with interest at 7.5% a year from 30 June 2008, and
- the buyer had to transfer the house and land back to the developer.
The buyer appealed to the Supreme Court for more. The Supreme Court added the costs that flowed directly from the fraud:
- telephone installation: 3,584.50 baht
- electricity and water meter deposits: 3,015 baht
- mortgage registration fee and stamp duty on the loan: 4,235 baht
- fire insurance required by the bank: 4,017.85 baht
The buyer also claimed 1,661,000 baht for the increase in property prices. The court accepted that a rise in value was a normal loss that the buyer could claim because of the fraud. The buyer's evidence was thin, but the court can assess damages from the circumstances. Considering the location and the surrounding infrastructure, it awarded 100,000 baht.
The buyer's mortgage interest to the bank (205,017.84 baht to April 2010) was not awarded separately. The interest on the refunded price already covered it.
All amounts carried interest at 7.5% a year, the statutory rate at the time.
What this means for buyers
- A seller who knows about a planned expropriation and hides it may have to take the property back and pay your costs.
- Keep receipts for everything connected with the purchase: fees, deposits, insurance and loan costs.
- Checking expropriation plans before buying is much cheaper than a lawsuit.
Legal references
- Civil and Commercial Code, provisions on voidable acts induced by fraud
- Supreme Court decision No. 1808/2561 (2018), Consumer Case Division
This explainer gives general information about Thai law as at 14 October 2026. It is not advice on your situation. Interest rates and amounts in court decisions reflect the law when each decision was made. Contact the office before you act.