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Buying property - the essentials
• About foreign ownership - land & houses • About foreign ownership - condominiums
• Land titles in Thailand • Taxes on property • Units of land measurement • Legal advice
Land titles in Thailand
Land titles in Thailand can be confusing – if for no other reason than the arcane names. In reality, there are only three types of title that should be accepted when a foreign national is intending to buy land: Chanote, Nor Sor Saam (3) and Nor Sor Saam (3) Kor. If you are offered land with Sor Bor Kor title, do not be tempted; while this recently created form of title does convey ownership rights, the land can not be sold or transferred, except as part of a last will and testament. Expectations that this form of title will be upgraded in the near future to Chanote are unfounded; any upgrade is, if at all, a long way in the future. Similarly, Sor Kor Nung (1), which translates as ‘certificate of possession’, is effectively a registration of squatter’s rights and cannot be sold, transferred or used as collateral.
The information below is intended as a guide and in no way should be interpreted as replacing the need for competent and diligent legal counsel!
Chanote
Chanote is the most secure title. Chanote titled land is accurately surveyed and the title deed is issued by, and registered at, the Provincial Land Department Office. The title document shows official government survey points using GPS to accurately plot the boundary positions. The boundaries will also be marked by numbered posts physically placed on the property. Chanote title can be transferred with no requirement for a waiting period.
Nor Sor Saam Kor
This is effectively a ‘confirmed certificate of use’. The land will have been surveyed, but less accurately than for a Chanote title. Each Nor Sor Saam Kor plot is cross-referenced to a master survey of the area and aerial photographs. Experts recommend that, if considering buying a Nor Sor Saam Kor title, you should ask the seller to mark out the boundaries then get the owners of neighbouring land to confirm their agreement. Nor Sor Saam Kor and Chanote are the only titles with unrestricted right of ownership and transfer.
Nor Sor Saam
Directly translated as a ‘certificate of use’ (note ‘confirmed’ is missing from this title), Nor Sor Saam is similar in most respects to Nor Sor Saam Kor, except that not all the legal formalities have been completed. Before a transfer of ownership can be effected, the intent to transfer must be publicised for a period of 30 days – to allow for any objections or disputes over boundaries to come forward. Note that Nor Sor Saam land is generally less accurately surveyed than Nor Sor Saam Kor and errors of up to 20% are not uncommon.
Condominium Title
This is title to part of a building or buildings and a fractional interest in the land and common areas, including swimming pool, salas, lobbies, stairways and other communal facilities. This is the only form of outright ownership that can be registered in a foreign national’s name. To be empowered to sell freehold to foreign nationals, the building must have received proper certification under the Thai Condominium Act. Without this certification, the structure is simply an apartment complex, not a Thai condominium.
A condominium title will describe the floor area of the unit purchased as well as the percentage interest in land and common areas accruing to that unit – which translates into the voting rights in the ‘juristic person’ – which may be either the condominium owning company or an owners’ association. The percentage of total foreign ownership of a condominium is restricted (see guide-to-buying-foreign-ownership-condominiums.htm for details).
Building ownership
While a building, as distinct from land, can be owned and registered by a foreign national, there are no title deeds to buildings. In order to register ownership of a building at the District (Amphur) Office you will need to supply proof of ownership. If you have had the house built yourself, proper documentation proving that you have paid the all the construction costs will do the trick. Consider this requirement in your choice of building contractor; a local builder working in the ‘grey’ economy is unlikely to be able to provide the necessary documentation. If you have bought a finished house, documentation of the purchase will be required. Bear in mind that the more you can document your case, the easier the process will be. Think ahead.
To finalise the transfer, you will need to post a public notice for 30 days to provide the opportunity for objections to the transfer or registration of ownership to come forward.
