Property title deeds in Thailand serve as legal documents that establish land ownership, land use rights, and transferability. Governed by the Land Code B.E. 2497 (1954) and the Civil and Commercial Code, these deeds are issued by the Land Department and vary in the rights they confer. Understanding the differences between title deeds is essential for buyers, investors, and landowners to ensure secure and legally compliant property transactions.
1. Understanding Title Deeds in Thailand
A title deed (Chanote or Nor Sor 4 Jor) is the strongest form of ownership evidence, while other documents grant varying levels of possession or usage rights. These deeds dictate whether land can be sold, leased, mortgaged, or inherited.
2. Types of Property Title Deeds in Thailand
2.1 Chanote (Nor Sor 4 Jor) – Freehold Ownership
- The highest level of land ownership with precise GPS-mapped boundaries.
- Grants full rights to transfer, sell, mortgage, lease, or subdivide the land.
- Recommended for real estate transactions as it provides the most security.
2.2 Nor Sor 3 Gor – Land Possession with Strong Rights
- Issued for land that has been surveyed but not yet upgraded to a Chanote.
- Owners can legally transfer, lease, or mortgage the land.
- Boundaries are measured accurately, allowing an upgrade to Chanote.
2.3 Nor Sor 3 – Land Possession with Moderate Rights
- Recognizes an individual’s right to use and develop the land but lacks clear boundary surveys.
- Can be upgraded to Nor Sor 3 Gor or Chanote after proper verification.
- Transfers require a 30-day public notice period before registration.
2.4 Sor Kor 1 – Certificate of Land Possession
- Basic land possession document; not a true ownership title.
- Can only be converted to Nor Sor 3 or higher with official approval.
2.5 Land Allocation Titles (Special Cases)
- Sor Por Kor 4-01: Agricultural land granted to farmers, which cannot be sold or transferred.
- Tor Bor 5: Temporary land use rights issued by local authorities.
3. Foreign Ownership and Title Deeds
Foreigners are not allowed to own land under Thai law, but they can:
- Own condominiums (up to 49% of total saleable space).
- Lease land for 30 years (renewable).
- Own land through a BOI-approved company.
- Invest at least 40 million THB for potential land ownership (restricted to 1 rai).
4. Conducting a Title Search
Before purchasing land, conducting due diligence at the Land Department ensures:
- The seller has legal ownership and full rights to transfer the property.
- No encumbrances exist, such as mortgages, liens, or disputes.
- The land complies with zoning and land use laws.
5. Transferring Property Title Deeds
5.1 Steps for Title Transfer
- Buyer and seller visit the Land Office.
- Ownership and encumbrance verification.
- Payment of fees and transfer taxes.
- Issuance of a new title deed to the buyer.
5.2 Fees and Taxes
- Transfer fee: 2% of the land’s assessed value.
- Stamp duty: 0.5% (if exempt from specific business tax).
- Withholding tax: Based on a progressive rate for individuals, 1% for companies.
6. Legal Considerations and Risks
- Beware of unregistered land deeds (e.g., Sor Kor 1), as they do not confer ownership.
- Never buy land without verifying title authenticity at the Land Department.
- Land disputes and encroachments may arise from inaccurate Nor Sor 3 or lower titles.
Conclusion
Understanding property title deeds in Thailand is crucial for secure land ownership and transactions. A Chanote title is the most secure, while Nor Sor 3 and Nor Sor 3 Gor offer strong but lesser rights. Foreign investors must consider alternative legal structures to acquire property while ensuring all due diligence is completed before a transaction.