Property Title Transfer in Thailand involves transferring the ownership of a piece of land or condominium from one owner to another. The process can be complicated, and it is important to ensure that all the necessary steps are taken.
This includes doing a thorough due diligence on the land deed and verifying its boundaries. It is also advisable to change utility accounts into the buyer’s name after the title transfer.
Chanote is the highest level of title deed that gives true full ownership rights to land. It contains a legal description of the property, GPS-surveyed and linked to the national survey grid with concrete marker posts and satellite photographs. It is the most secure form of land ownership in Thailand. It is also the only one that allows a foreigner to legally own and transfer land.
Other title deeds do not allow this. In fact, if you find yourself buying a property with an SK1 or a Nor Sor 3 Gor land title, you should be extremely cautious as these titles are a definite no-go for foreigners.
These titles are based on possession of the property and only give the owner limited real rights, at most to use the land for agricultural purposes. However, squatters that have lived on the property for 10 years can claim ownership of the land. The government is currently changing these titles to Chanote.
Nor Sor 3
A Nor Sor 3 is a document that confirms land ownership. It is the best type of deed for foreigners to own property in Thailand. The holder of this document has full rights over the land and can sell, transfer, lease, usufruct, or mortgage it. It also grants the right to build structures on the land. The holder can also leave the property to heirs.
This title deed has fairly certain boundaries but is not a full freehold land title (Chanote). The holder can also sell or mortgage the land. In order to get a full Chanote title, the owner must file a petition with the Land Department and have the area officially measured and marked.
SK1 is not a real title deed. It verifies land occupancy but does not include any ownership rights. It cannot be sold or transferred to heirs. It can, however, be upgraded to a Nor Sor form or Chanote. There are other types of land titles in Thailand, such as Tor Bor Tor and Nor Sor Song, but these documents do not give the holder actual possession rights.
If you’re thinking of buying property in Thailand, it’s important to understand the property title transfer process. SIAM LEGAL can assist you in this process by providing the required documentation and conducting a title deed search. This will help you identify any liens or other issues with the property and ensure that you are getting a legitimate title deed.
A Sor Kor Nung document demonstrates possession but not ownership rights. It entitles the holder to use and occupy the land, but cannot be transferred or used for mortgages. However, this document can be upgraded to a Nor Sor 3 or Chanote document.
A full title deed in Thailand is called a Nor Sor Si Jor. This title confirms complete legal ownership rights and is backed by an official survey of the property. It also specifies the exact boundaries of the property, which can be sold or encumbered. However, it is important to note that a Nor Sor Si Jor may contain restrictions set by the previous owner and can limit the scope of future development.
In recent years, Thailand has made significant reforms in business regulation. The country now ranks 27th in the Doing Business rankings. It also protects intellectual property rights and offers an efficient dispute resolution process. This has reduced the number of lawsuits in Thailand and improved its competitiveness in global markets.
It is important to verify the land deed before purchasing a property in Thailand. There have been several cases of people misinterpreting land titles, resulting in disputes and costly mistakes.
The land department has seven different types of title deeds that offer varying rights of use, possession, and ownership. These documents are governed by the Land Code and the Constitution. There are also a number of rules and regulations that govern land transfer. For example, non-resident foreigners are required to pay a withholding tax when transferring ownership of a property. This is in addition to the 5% sales tax. A lawyer can help you understand the various taxes and fees involved.