Take a moment and picture this in your mind: You’ve just transferred your hard-earned life savings for renting sea-view villa in Phuket or a high-end luxury condo in Bangkok. The renderings were stunning, the sales team was charming, and the promise of tropical living felt completely within reach.
Then, six months pass.
Work on the construction site stalls. The developer stops answering your messages. When you finally dig deeper, you uncover a nightmare: the land isn’t even registered in the developer’s name, your deposit has vanished, and the company entity is an empty shell.
Your instinct tells you to call a contract lawyer, or file a civil suit, and wait for a court date.
Stop right there. That single decision could cost you everything.
What most foreign investors don’t realize is that property scams routinely cross the line into severe violations of the Thai Criminal Code. When developers make false promises or misappropriate funds, they aren’t just breaking a contract, they are committing criminal fraud.
This is where bringing in an experienced criminal defense lawyer completely changes the game.
At Herrera and Partners (H&P), we have seen firsthand how real estate disputes unfold in Thai courts. Understanding how to leverage criminal law, and knowing when to bring in a experienced criminal defense lawyer, can mean the difference between recovering your hard-earned funds and watching your investment disappear forever.
Common Property Fraud Schemes Targeting Foreigners in Thailand
To protect your assets, you first need to recognize how real estate fraud happens in Thailand. The country’s legal restrictions on foreign land ownership create unique vulnerabilities that fraudsters exploit every day which is against the civil or criminal law.
1. Off-Plan Developer Fraud
Off-plan properties are hugely popular among foreign investors looking for pre-construction discounts. You pay a deposit, make installment payments over two or three years, and receive the title upon completion.
Unfortunately, rogue developers frequently use pre-construction sales as an interest-free financing tool for projects they never intend to finish or lack the licenses to finish. They collect initial deposits, stall construction indefinitely, and funnel the capital into other ventures or personal accounts. By the time buyers realize something is wrong, the developer’s local entity has been hollowed out.
2. Illegal Nominee Structures
Under the Land Code of Thailand, foreign nationals cannot directly own land in their individual names. To bypass this, unscrupulous real estate agents and law firms often propose setting up a Thai majority-owned limited company to hold the land on the foreigner’s behalf.
If this company uses local “nominees” (Thai shareholders who hold equity in name only without making actual financial contributions), it violates the Foreign Business Act (FBA). Fraudulent actors often use these illegal structures against foreign investors later, seizing control of the company, stripping the foreign director of signing authority, and stealing the land outright.
3. Fake Titles and Double Selling
While less common with major developers, double selling remains a persistent problem in secondary markets and island locations. A dishonest seller or agent might sell the same property unit or parcel of land to multiple foreign buyers, collecting deposits from each. In other cases, foreigners are shown valid land title deeds (Chanote) that actually belong to neighboring plots or carry undisclosed mortgages and bank liens.
4. Embezzlement by Real Estate Agencies and Escrow Services
Unlike Western real estate markets, real estate brokerage is largely unregulated in Thailand. Anyone can open an agency. Foreign buyers frequently transfer earnest money or full purchase price payments into local agent accounts or unvetted “escrow” services, only for those funds to be misappropriated before ever reaching the seller or the Land Department.
Civil Lawsuits vs. Criminal Prosecution: Why Criminal Leverage Matters
When foreign buyers discover they have been scammed, their initial reaction is to file a civil lawsuit for breach of contract.
While civil claims are necessary in many scenarios, relying solely on civil litigation in Thailand comes with major drawbacks:
- Time and Delay: Civil lawsuits can take six months to four years to navigate through the Thai legal system. Depending on each court workload.
- Asset Dissipation: During a lengthy civil trial, some of the dishonest developers may have ample time to transfer funds out of company accounts, sell assets to third parties, or liquidate operations. (However, there are legal mechanisms available for the recovery of assets, such as an action to revoke fraudulent acts. The appropriate approach would need to be considered on a case-by-case basis.)
- Judgments Without Recovery: Some of the favorable civil judgment is meaningless if the losing party’s bank accounts are empty. You end up with a piece of paper saying you are owed millions, but no way to collect it.
However, if there are other assets owned by the debtor, enforcement may still be possible. We would need to further investigate and verify the available assets at the enforcement stage.
In the other hands, for the Thai Criminal Code
Criminal prosecution works under an entirely different dynamic. In Thailand, real estate fraud triggers explicit sections of the Thai Criminal Code:
| Offense | Statutory Provision | Legal Application in Property Fraud |
| Fraud | Section 341 | Deceiving a person with false statements or concealing facts to obtain their property. |
| Aggravated Fraud | Section 343 | Committing fraud by public advertisement, online listings, or targeting the general public. |
| Embezzlement | Section 352 | Misappropriating funds or property held in trust for an agreed real estate transaction. |
| Computer Crimes | Computer Crimes Act | Inputting false or misleading property data into computer systems to deceive buyers. |
If the facts of the case may constitute a criminal offence, we will assess the relevant facts and applicable laws on a case-by-case basis, the personal stakes for the perpetrators rise exponentially. Criminal offenses carry real prison sentences, personal director liability, travel bans, and severe reputational damage.
At Herrera and Partners, we emphasize to our clients that facing criminal charges dramatically alters a fraudster’s willingness to settle. When a developer or dishonest agent realizes that continuing to withhold money could lead to immediate incarceration, asset seizures, and court-ordered surrender of passports, negotiations tend to move very quickly.
We will assess each case on a case-by-case basis to determine whether the conduct constitutes any criminal offence and/or gives rise to a civil claim under the applicable laws.
The Strategic Role of a Criminal Defense Lawyer in Protecting Your Assets
Why do you need a criminal defense lawyer if you are the victim of a property scam?
This is one of the most common questions foreign investors ask us. The answer lies in how the Thai criminal legal system functions.
In many Western jurisdictions, criminal prosecution is handled exclusively by the state through the police and public prosecutors. In Thailand, however, victims of crime have the legal right under the Criminal Procedure Code to initiate a Private Criminal Prosecution directly in court through their own private legal counsel.
A skilled criminal defense lawyer brings essential, high-stakes litigation skills to your side
1. Private Criminal Prosecution
Relying on the local police to investigate complex financial crimes can take months, especially if language barriers exist or the station is overwhelmed with local cases.
A criminal defense lawyer drafts and files a formal criminal lawsuit directly with the Thai Criminal Court in the jurisdiction. The court conducts a preliminary hearing (preliminary examination) to determine if the case has merit. Once accepted, the court issues arrest warrants or summonses for the accused directors and developers, bypassing police delays entirely.
2. Defending Foreign Buyers Against Retaliatory Criminal Claims
This is where having a criminal defense lawyer becomes absolutely critical.
Thailand has some of the strictest criminal defamation and cybercrime laws in the world. Rogue developers and dishonest agents frequently use these laws as weapons against foreign buyers.
When a foreign buyer posts about a failed project on social media, leaves a negative Google review, or sends angry emails to a developer’s business partners, the developer may retaliate by filing criminal defamation charges (Section 326/328 of the Thai Criminal Code) or filing a complaint under the Computer Crimes Act.
At Herrera and Partners, our criminal defense lawyers routinely shield foreign clients from these predatory counter-actions. We build strategic defense walls, handle police station appearances, secure bail when necessary, and get retaliatory charges dismissed so you can focus on recovering your capital.
Step-by-Step Action Plan: What to Do If You Suspect Property Fraud
If you suspect that your real estate investment in Thailand is built on fraudulent promises, what you do in the first 48 hours is critical. Making the wrong move can jeopardize both your financial recovery and your personal freedom.
Step 1: Immediately Freeze Communication and Transfers
Stop making installment payments immediately, even if the developer threatens to terminate your contract or forfeit your deposit for non-payment. Continuing to send money after discovering fraud only increases your total losses.
Step 2: Preserve Every Piece of Evidence
Gather and back up every document related to the transaction:
- Signed reservation agreements, purchase and sale contracts, and addendums.
- Official bank transfer slips, wire confirmations, and currency exchange receipts.
- Email threads, LINE chat histories, WhatsApp messages, and voice notes.
- Marketing brochures, website screenshots, and social media promotions promising specific completion dates or guaranteed rental returns.
Step 3: Do Not Post Public Complaints Online
Resist the urge to vent your frustration on Facebook, online forums, or review platforms. Under Thai law, truth is not an absolute defense against criminal defamation if the court determines the public statement was made to damage a party’s reputation rather than serve the public interest. Let your lawyer handle the fight in court and not on social media.
Step 4: Engage Legal Counsel in Bangkok
Consult with a reputable law firm in Thailand that handles both corporate real estate law and criminal litigation. At Herrera and Partners, we review your agreements, conduct deep corporate and background checks on the developers, and determine whether your case meets the legal threshold for criminal fraud or private prosecution.
Why International Investors Partner with Herrera and Partners
Navigating a foreign legal system in a foreign language is intimidating. Real estate fraud cases require a sophisticated blend of real estate due diligence, financial auditing, and aggressive criminal trial tactics.
At Herrera and Partners (H&P), our team of experienced lawyers in Bangkok provides foreign investors with clear, actionable strategy. We regularly represent international clients, Forbes 100 corporations, and private investors across Thailand, from Bangkok and Pattaya to Phuket and Samui.
When you work with Herrera and Partners, you gain access to:
- Dual Real Estate & Criminal Law Capabilities: We know how to draft clean property contracts and how to prosecute dishonest developers in criminal court when things go wrong.
- Bilingual Legal Representation: Clear communication in English and Spanish, backed by licensed Thai trial attorneys who appear in court on your behalf.
- Proactive Asset Protection: Strategic advice focused on freezing assets early and forcing rapid financial settlements before your funds leave the country.
Property fraud can turn a dream investment into a nightmare, but you are not powerless. By working with an experienced criminal defense lawyer, you can take control of the narrative, protect your personal rights, and assertively recover your assets under Thai law.
