Section 733 — Mortgagee's right limited to mortgaged property
Statutory text (Thai original)
แห่งประมวลกฎหมายแพ่งและพาณิชย์ ตามที่ได้แก้ไขเพิ่มเติมโดยพระราชบัญญัตินี้พระราชบัญญัติแก้ไขเพิ่มเติมประมวลกฎหมายแพ่งและพาณิชย์ พุทธศักราช ๒๔๗๙[298]
Verbatim from the Royal Gazette / Office of the Council of State
คำแปลภาษาอังกฤษ
If the estimated value of the property, in case of foreclosure, is or the net proceeds, in case of auction, are less than the amount due, the debtor of the obligation is not liable for the difference.
This English translation is provided for reference only and has not yet been firm-verified — always rely on the Thai original.
Firm annotation
Section 733 is a major borrower protection — the consumer mortgage default in Thailand limits the lender's recovery to the property itself, even if the property sale proceeds don't cover the debt. The lender's contract must contain an express provision waiving this protection to reach other assets, and even then post-2014 reforms restrict overreaching. The provision drives a structural feature of Thai mortgage practice: lenders typically require both a mortgage AND a separate personal guarantee (§680) to maximize recovery options.
Why this matters in practice
Lawyers: Section 733 is a significant debtor-protection rule. Where a creditor has obtained a judgment for the underlying debt and also holds a mortgage, a foreclosure auction that yields less than the judgment debt does not give the creditor the right to pursue the debtor's other assets for the difference — unless the parties have expressly contracted otherwise. This rule applies also where a third party (not the debtor) mortgaged their own property to secure someone else's debt. Laypeople: If the bank sells your mortgaged property and the proceeds do not cover the full loan, the bank generally cannot come after your other assets for the remainder — your liability ends with the sale of the mortgaged property.
Legislative history
Part of the original Civil and Commercial Code codification; no major subsequent amendment.
Supreme Court decisions interpreting this section
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Supreme Court Judgment No. 15363/2557 (2014) ★ Landmark
After foreclosure of the mortgaged property, the debtor bears no personal liability for any shortfall between the debt and the net proceeds of the foreclosure sale.
Where the mortgage debt is less than the principal debt, and the mortgaged property is foreclosed at a value or auction price lower than the debt outstanding, Section 733 provides that the debtor is not liable for the shortfall — even if the mortgage covered only part of the principal debt.
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Supreme Court Judgment No. 8851/2551 (2008)
Section 733 applies whether the debtor or a third party mortgaged the property; the mortgagee's recovery is limited to the foreclosure proceeds in all cases.
Section 733 is not limited to cases where the debtor mortgaged their own property — it also applies where a third party mortgaged their own property to secure another person's debt. In both cases, the mortgagee's claim after foreclosure is limited to what the auction produces.
Curated decisions with case numbers verified against the Supreme Court database. English renderings are the firm's editorial translation for study.
Frequently asked questions
After the bank auctions my mortgaged home and the money is not enough to cover the loan, can it sue me for the rest?
Generally no, under Section 733. Once the bank forecloses the mortgage and the property is auctioned, any shortfall between the auction proceeds and the debt is extinguished — the bank cannot pursue your other assets for the difference. However, if you also have a separate personal loan obligation (not secured by the mortgage), that remains enforceable independently.