Title deeds in Thailand serve as the official documents verifying ownership or legal rights over land. The different types of title deeds offer varying levels of ownership security and legal protection, making it crucial for buyers to understand the nuances before purchasing property.
The Chanote is the most secure and recognized type of title deed in Thailand, providing full ownership rights. It is based on precise land surveys, giving the owner complete legal rights to the land, including the ability to sell, transfer, or lease the property. A Chanote title deed guarantees that the land has been accurately measured and marked with survey monuments, making it ideal for both Thai nationals and foreigners (if purchasing condominiums).
This deed grants ownership-like rights and can be upgraded to a Chanote deed after additional surveys are completed. However, it does not offer the same security as a Chanote, as the boundaries may not be clearly marked.
A Nor Sor 3 deed provides possession rights, but the land boundaries are less clear than Nor Sor 3 Gor, making it prone to disputes. Public notice must be given before transferring the land, and it is often considered a temporary title until full land surveys are conducted.
This type of deed allows occupation rights but does not provide ownership. It is mainly used in rural areas, and the holder can upgrade it to a more secure title, such as Nor Sor 3 or Chanote, after land surveys are completed.
Foreigners cannot own land directly in Thailand, but they can own condominiums or lease land for up to 30 years. There are several avenues through which foreigners can acquire land usage rights:
Under Thai law, foreigners can purchase condominiums in freehold, provided that foreign ownership does not exceed 49% of the total floor area of the condominium building.
Foreigners can lease land for 30 years, with the possibility of two additional 30-year renewals. This arrangement allows foreign nationals to build and own the structure on leased land, while the land remains under Thai ownership.
Foreigners can also form a Thai-majority company to buy land, with at least 51% of the shares owned by Thai nationals. However, this method requires strict compliance with Thai company laws, and the use of nominee shareholders to circumvent the rules is illegal.
Before purchasing land, a thorough title search at the Land Department is essential to ensure that the property is free from encumbrances such as loans, mortgages, or legal disputes. Key steps include:
The transfer of ownership must take place at the Land Department, where the buyer and seller (or their legal representatives) must be present. The process includes:
Lands with non-Chanote title deeds, such as Nor Sor 3 or Sor Kor 1, may not have precise boundaries, leading to disputes with neighbors.
Properties may have legal encumbrances or unpaid loans that could affect ownership rights, making it essential to conduct a title search and seek legal advice before purchasing.
Ensure the title deed is legitimate by cross-checking with the Land Department to prevent purchasing fraudulent or disputed land.
In Thailand, understanding title deeds is crucial when purchasing property. The Chanote provides the most secure form of ownership, while other types, such as Nor Sor 3 Gor or Sor Kor 1, come with varying degrees of security and limitations. Foreigners face restrictions on direct land ownership, but they can lease land or own condominiums. Conducting a title search and ensuring the deed’s legitimacy are critical steps in protecting your investment in Thailand’s real estate market.