Property Title Transfer in Thailand is a critical step in ensuring legal ownership rights and protecting your investment. This process requires careful attention to Thai laws and regulations, as well as knowledge of necessary documentation, procedural steps, fees, taxes, and potential challenges.
The most preferred land title deed in Thailand is the Chanote (Nor Sor 4 Jor). This type of title provides full ownership and allows for usufruct, mortgages and long-term leases to be registered against it.
Chanote
A land title deed in Thailand is a document issued by the government that confirms your legal ownership rights. This document is a necessity when buying a plot of land in Thailand. It provides you with full ownership of a precisely surveyed and mapped out land plot. This allows you to cultivate, sell, transfer, and mortgage the property. It also protects you from illegal encroachment.
This type of title deed is the most secure form of real estate ownership in Thailand. The property’s boundaries are clearly marked by concrete or metal survey markers. The land is also GPS-plotted and correlated to a national survey grid. This makes it easy to identify the exact location of the property. This type of title is more common in developed areas of the country.
A Chanote is considered the highest level of land ownership in Thailand, and it offers superior security and marketability to other types of titles. It is highly sought-after by investors and buyers, both domestic and foreign. Its superior security and flexibility allow owners to develop and mortgage their properties without significant legal obstacles. However, before transferring a Chanote, you should seek guidance from professionals who understand Thai property law. They can help you avoid legal pitfalls and ensure a smooth, efficient transaction. This will reduce your risk of misunderstandings and disputes between you and the local authorities.
Sor Kor 1
The Sor Kor 1 is the least favored land title document in Thailand. This notification of land occupation confers minimal associated rights and allows the holder to occupy and use the property for specific purposes, typically farming. The holder may transfer the notification through sale or inheritance, but it is illegal to register any legal rights such as sales, leases, usufructs, or mortgages on this type of land.
New Sor Kor 1 documents have not been issued since 1972 and upgrading this notification to a full title deed is currently NOT possible. However, if the holder is willing to pay for a survey of their property and apply for a Nor Sor 3, Nor Sor 3 Gor, or Chanote title deed, it might be possible to upgrade their current documentation.
Obtaining the proper documents to prove ownership is vital for any property transaction in Thailand. Before committing to any purchase, prospective buyers should do their due diligence, verify ownership, and identify any registered liens. In addition, a land survey is recommended to reduce the risk of future boundary disputes with neighbors. Having the correct documentation in place can help reduce the risks and costs of buying property in Thailand. It is also important to have a Thai attorney on hand to assist with the process and ensure that all requirements are met.
Sor Kor 2
This type of land deed, commonly known as a Nor Sor 2, demonstrates possession of a plot of land but does not convey full ownership. It also does not specify exact boundaries of the property, which means that future neighbour disputes are possible. Having said that, this is still one of the most secure types of Thai land title as it can be upgraded to a Nor Sor 3 Gor and then a Chanote by the Land Department.
The SK1 document, or notification form of land possession, confers minimal associated rights and only allows the holder to occupy and use the land for certain purposes such as agriculture. It does not allow the holder to register or transfer rights and can only be transferred through inheritance. It is possible to upgrade this type of land to Nor Sor forms or Chanote documents but the process can be lengthy.
Historically, coastal land owners used these types of titles to avoid paying taxes on large tracts of land and often understated the size of their parcels in order to receive an upgrade to a Nor Sor 3 Gor or a Chanote. This caused problems for subsequent holders as they found themselves in a dispute with neighbours over the true size of their plots. Fortunately, the Land Department is now working to address these issues and the new land title deeds are clearer than ever on the sizes of properties.
Nor Sor 3 Gor
This document essentially grants the holder full ownership rights to the land and also allows for the property to be sold, transferred, leased, or mortgaged. It also includes exact measurements of the land and a detailed history of all relevant transactions. This is the best type of title deed to obtain before upgrading to a Chanote title.
Nor Sor 3 Gor is an updated form of the Sor Kor 2 and is more accurate in terms of measurements and boundaries. It can be used for freehold and leasehold land and can be subdivided into smaller plots. However, it does not guarantee true land ownership. Land with a Nor Sor 3 Gor can still be sold under a 30-day notice period and can have a claim of hostile possession against the owner.
Sor Kor Nung is the least preferred form of land ownership in Thailand. It is a legal form claiming that an occupant has right of occupation and can only be upgraded to Nor Sor 3. However, it does not verify the existence or accuracy of measurements and may be contested by other occupants.
Sor Por Gor 4-01 (Sor Por Kor 1) is another form of land document that cannot be used for freehold or leasehold land in Thailand. This type of document only grants the holder a possessory right to the land and can only be transferred through inheritance.
