Title Deeds in Thailand

Title deeds in Thailand are legal documents that establish ownership and land rights. The Land Department issues different types of deeds, each granting varying levels of ownership security. Understanding these distinctions is crucial for anyone involved in real estate transactions.

1. Types of Title Deeds in Thailand

Thailand has multiple title deed classifications, ranging from full ownership rights to more limited land-use certificates.

1.1 Chanote (Nor Sor 4 Jor) – Freehold Title

• The most secure form of land ownership.
• Issued with GPS-surveyed boundaries, minimizing disputes.
• Allows full transfer, sale, mortgage, and lease rights.
• Highly recommended for real estate investments.

1.2 Nor Sor 3 Gor (Confirmed Land Possession)

• Grants ownership rights but lacks precise GPS mapping.
• Can be upgraded to a Chanote through the Land Department.
• Allows for sale, lease, and mortgage, but transfer requires a 30-day public notice.

1.3 Nor Sor 3 (Possessory Right)

• Less precise than Nor Sor 3 Gor; land surveys are not fixed.
• Can be converted into Nor Sor 3 Gor or Chanote with further verification.
• Transfer requires a public notice period before approval.

1.4 Sor Kor 1 (Certificate of Land Possession)

• Recognizes possession but does not grant ownership.
• Requires upgrading to Nor Sor 3 or Chanote for legal sale or transfer.

2. Foreign Ownership Restrictions

1. Foreigners Cannot Own Land Directly – Must use legal alternatives:
   • Purchase condominiums (up to 49% of total project area).
   • Obtain a 30-year lease (renewable).
   • Invest at least 40 million THB for potential land ownership approval.
2. Company Ownership Structures – Foreigners may own land through a Thai company (requires compliance with the Foreign Business Act).

3. Conducting a Title Search

Before purchasing land, a title search at the Land Department is essential to verify:

• The authenticity of the title deed.
• Encumbrances like mortgages or liens.
• Legal zoning and land use restrictions.

4. Transferring Title Deeds

1. Buyer and Seller Visit the Land Department.
2. Verification of Title and Settlement of Fees.
3. New Title Issued in the Buyer’s Name.

Fees include:

• Transfer fee: 2% of assessed value.
• Withholding tax: 1% of sale price (corporate sellers), or progressive rates for individuals.
• Specific business tax (if applicable): 3.3%.

Conclusion

Understanding title deeds in Thailand is crucial for legal and secure property transactions. Chanote titles offer the highest ownership security, while Nor Sor 3 Gor and Nor Sor 3 provide alternative options. Conducting thorough due diligence before purchasing land ensures a safe investment.