Bank refuses a loan because the estate road still belongs to a dissolved developer
In many older Bangkok housing estates, the roads were never handed over. They are still registered to the original developer, sometimes a company that closed decades ago. Buyers usually find out only when a bank refuses a loan.
In short
- In some older estates, the road plots are still registered to the developer, even after the company has closed.
- Banks may treat a plot reached only by such a road as landlocked and refuse to lend against it.
- The fix is to restore the company to the register so it can dedicate the road for public use, which involves the court, the Land Office and the district office.
A typical case
A young family bought just over 200 square wah (about 800 m²) of vacant land in an old estate near Borommaratchachonnani Road in Taling Chan, Bangkok. They hired an architect and planned to borrow 10 million baht to build.
The bank refused. The soi in front of the plot was still owned by the estate's original developer. The company had been dissolved and its director had died. Because no one with legal power over the road could guarantee access, the bank treated the plot as landlocked (ที่ดินตาบอด).
Why it matters
Being able to drive to the land is not the same as having a legal right of access. A bank lending against land wants to know that the owner, and any later buyer, can always reach it. If the road belongs to someone else and there is no registered right of way, that is not certain.
Check the road before you buy. Ask the Land Office who owns the road plot in front of the land, and whether it is a public road, a registered servitude or simply private land. If it belongs to a company, check with the Department of Business Development whether the company still exists.
How the road can be made public
The road plot has to be dedicated for public use by its owner, the company. A company that no longer exists cannot do that, so it has to be restored first. In this kind of case the steps are:
- Court. A person with an interest asks the court to order the registrar to restore the company to the register. Here the estate administrator of the late director was approached to act for the company.
- Land Office. Once restored, the company applies to the Land Office to register the dedication of the road plot for public use.
- District office. The district office has to accept the road as public property in its area.
All three agencies must act. Once the road is public, the plot has public road access and the bank can consider the loan again.
What this means for buyers
- Before buying land in an older estate, find out who owns the road in front of it.
- If the road is privately owned, ask whether a servitude or right of way is registered for your plot.
- Restoring a dissolved company is possible, but it takes time and there are time limits. Build that into your plans before you pay for the land.
Legal references
- Civil and Commercial Code, provisions on restoring a company to the register
- Land Allocation Act B.E. 2543 (2000) and Revolutionary Council Announcement No. 286 (1972)
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.