New Land Allocation Law Set to Enhance Buyer Protections and Public Utility Standards

Bangkok: The new land allocation law, which aims to bolster protections for land buyers and improve the upkeep of public utilities in housing projects, is set to come into effect tomorrow.

According to Thai News Agency, Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, announced that the Land Allocation Act (Amendment No. 3) B.E. 2568 (2025) will commence on March 1, 2026. The amendment intends to align with Articles 26, 37, and 40 of the Constitution, ensuring that restrictions on individual rights and freedoms are legally grounded and necessary.

The amendment introduces several key changes. Firstly, it enhances the standards for public utilities such as roads, parks, and playgrounds within housing developments. Developers must maintain these utilities to ensure they remain uncompromised, and they are required to provide a maintenance guarantee contract with a financial institution to secure buyers' interests.

Furthermore, the law specifies conditions under which maintenance duties can be terminated. Buyers have the option to form a homeowners' association to take over property responsibilities or dedicate the property for public use, with a security deposit required for the legal entity or local government.

In addition, the amendment empowers buyers by allowing them to take action if developers fail in their duties. Buyers representing at least half of the plots sold can apply to establish a juristic person for the development. The law also revises the criteria for common area fees, permitting variable rates based on land use type or area size as determined by the Central Land Allocation Committee.

Penalties for non-compliance with committee orders have been introduced, with fines ranging from 50,000 to 100,000 baht, and daily fines until compliance is achieved.

Ms. Lalida emphasized that the amendment aims to clarify developer responsibilities, minimize disputes, and ensure fair treatment for land buyers. The government is committed to enhancing land allocation standards to guarantee transparency, fairness, and protection of citizens' rights.