Property title transfer is a crucial step in the real estate process in Thailand. It verifies the new buyer’s ownership and establishes rights and restrictions that may be associated with the land.
It also serves as a requirement for securing financing and complying with Thai law. To ensure a smooth transaction, it is best to hire an experienced lawyer and prioritize due diligence.
A Chanote is the highest land deed confirming full ownership. It includes concrete or metal survey markers and correlates the survey of the real estate to national and satellite maps. This is the most secure form of title deed in Thailand. It grants the holder full property rights to sell, transfer, mortgage and build on the land. It also gives the holder the right to use the land for beneficial purposes.
However, if the land parcel is not used for a beneficial purpose or there are squatters on the land, the holder will have to evict them within a specified timeframe or they will lose their ownership. If a property seller claims to have a Chanote, the buyer must request a certified copy from the land office to confirm that the title is valid.
Other types of land titles include Sor Kor 1 certificates that acknowledge possessory rights and can be upgraded to Nor Sor 3 Gor through an administrative process, but they do not grant the right to sell or transfer the land. The lower-level documents do not include precise survey boundaries and are vulnerable to boundary disputes with neighbors. They also do not allow for the registration of usufructs or right of superficies. This is why understanding the various types of land titles in Thailand is important for anyone buying property in Thailand from a developer.
The Nor Sor 3 Gor land title is the lowest type of land deed in Thailand. This document offers conditional ownership rights and can only be transferred through inheritance. It is typically found in rural areas. It can be upgraded to a Chanote title, but the process is lengthy and there are specific legal requirements that must be met.
The main risk with this type of title is that it doesn’t show the exact boundaries of a property. This can lead to disputes with neighbors. Additionally, it doesn’t have a survey, so the size of a property may not be accurate. Moreover, it also doesn’t include parcel points and numbered concrete posts to mark the property boundaries.
Another risk is that the government can take back the land if it doesn’t meet certain conditions. This is important to consider if you plan to purchase a property with a Nor Sor 3.
The next type of land title in Thailand is the Nor Sor 4. This title deed confirms full ownership and includes a satellite-surveyed map. It’s the most secure type of title in Thailand and is required for registering property sales and long-term leases. It also allows the owner to transfer the title to a new owner. In addition, this type of title is also acceptable for bank mortgages and can be used to prove land ownership in court.
In Thailand, a PBT5 is a document that entitles you to occupy land in the country. It is a temporary certificate that is valid for up to three years. It can be transferred to a third party by the owner’s last will or as a gift from the owner to another individual. In the case of a transfer, a new title deed will be issued to the purchaser. However, it is important to note that a PBT5 cannot be sold or mortgaged.
If you want to buy a property in Thailand with a PBT5, it is important to check the title deed carefully to ensure that you are purchasing a full legal title. You should also check for any outstanding debts and mortgages on the property. Moreover, you should be sure that the property is free of any foreign ownership restrictions.
In order to complete the property transfer process in Thailand, both parties must visit the local Land Office office together. During the process, the seller and buyer must settle all fees and taxes that are applicable. You should be sure that you have all the necessary documents before visiting the office. These documents include a photocopy of your passport, a residence certificate from the Immigration Department or your embassy, and a work permit if you are a foreigner.
As with any property purchase, it is important to carefully review all relevant title deeds to ensure a clear transfer of ownership. Familiarity with these documents enables foreign buyers to make informed decisions and navigate the land registration process more confidently. Moreover, title deeds can also help identify any legal issues such as liens or mortgages on a property.
The most advanced form of land title in Thailand is a Chanote document which confirms full ownership and includes a satellite-surveyed map of the property. This type of title is necessary for registering property sales and mortgage registration. Other types of titles include Nor Sor 3 Gor and Nor Sor Kor 1, which acknowledge possessory rights but do not allow for transfer or mortgage registration.
Moreover, there are specific restrictions on foreign ownership of land in Thailand. Currently, foreigners can only own land if they are married to a Thai national or obtain permission from the Minister of Interior to acquire land as a statutory heir from a deceased family member.
Foreigners can also own property separate from the land by building a house upon leased land (with or without a right of superficies) or by buying an existing house with a land lease. The latter option can be more beneficial for investors as it allows them to avoid paying taxes on the entire plot of land.