The property title transfer process varies based on region and individual circumstances. Consultation with legal professionals specializing in Thai property law is advisable.
The process includes obtaining and filing the appropriate documents at the Land Department. The buyer is responsible for paying the associated fees and taxes. These include transfer fees, specific business tax, and stamp duty.
If you are planning to buy land in Thailand, it’s important to know about the different types of property title transfer laws in the country. These laws determine a variety of things, including legal ownership, tax obligations, and building permits. The process is complex, so it’s essential to consult a professional property lawyer.
A Chanote deed is the highest-level land title deed and allows full ownership of the property. The document represents a fully surveyed parcel of real estate, with concrete or metal survey markers set in the ground. The area of the parcel is verified by the Land Department and correlates to national survey grids and satellite photographs. The land can be sold, transferred, or used for a mortgage and usufruct.
It’s important to note that foreigners cannot directly own a Chanote land deed, but they can purchase a Nor Sor 3 Gor or other full-title document. It’s possible to upgrade Nor Sor 3 Gor titles into a Chanote document, but the process can take several years.
Sor Kor 1
The document holder is entitled to use the land for occupation but can not sell or transfer the ownership to someone else. The land can be inherited but this is rare. It can be upgraded to Nor Sor 3 or Nor Sor 4 Jor (Chanote) but not without a lot of trouble and expense.
This type of document is often used for land occupied by foreigners. Depending on the location of the land, it may be possible to upgrade this deed to Nor Sor 3 or Nor Sor 3 Gor (Chanote) if the documents are not too old.
This is a not a good title deed to invest in. It was last issued in 1972 and you cannot upgrade it with the Land Department anymore. You also have to give 30 days public notice before selling it. The main disadvantage is the lack of clearly defined boundaries. This will cause boundary disputes in the future.
Sor Kor 2
Also known as SK1 this land document does not hold complete real rights and at best only entitles the holder to use or occupy the land. It can only be sold or transferred through inheritance. This type of document is not allowed to be registered for any right (sale, lease, usufruct or mortgage).
Although this title deed designates ownership and has fairly accurate boundaries it is not a full Chanote land title deed. This type of land can be upgraded to a Chanote title deed if the holder files a request with the Land Department and has their property surveyed by official land department surveyors and placed with official boundary markers.
Previously this process was much quicker and easier for the owner, however it is now only possible through a complicated court procedure. This is not a good option for foreign buyers because it can lead to a number of potential problems. It can be difficult to prove ownership and may result in disputes with neighbours or the government.
The property title transfer process in Thailand can be a complex endeavor. It is advisable for buyers and sellers to work with legal professionals who have an understanding of Thai real estate law. This will help them navigate the different stages, legal requirements, and considerations of this process.
The final step of the property title transfer process in Thailand is registering the title deed with the local land office. This is an important step as it confirms the buyer’s ownership of the property. It also helps prevent encumbrances and disputes related to the property.
If you are unable to attend the land office in person, you can use a Power of Attorney to designate someone to represent you. This document must be notarized and certified by your country’s embassy or consulate. This will allow you to pay the corresponding taxes and fees for the transfer of ownership. In addition, it will ensure that utility accounts are changed into the buyer’s name.