Property Title Transfer is a crucial process that ensures legal ownership and provides security for investors. It also simplifies inheritance procedures and reduces the risk of disputed ownership claims.
The most preferred type of land title in Thailand is a Chanote, which confirms full ownership and allows for sale and mortgage registration. However, it’s important to note that other titles like Nor Sor 3 Gor and Sor Kor 1 indicate occupancy rights but cannot be transferred.
Obtaining a Title Deed
A title deed is a key document that establishes legal ownership. It is essential for property transactions, financing, and ensuring compliance with Thai law. It also provides a clear indication of land boundaries, which reduces the risk of disputes with other landowners. In addition, it enables the transfer of rights like usufruct and superficies.
There are different types of title deeds in Thailand, and they can vary in terms of what they offer to the holder. The most secure is the Chanote (Nor Sor 4 Jor), which confirms full ownership and includes a satellite-surveyed map. It is used to register property sales and leases longer than three years. In contrast, Nor Sor 3 Gor and Nor Sor Kor 1 only indicate possessory rights, which can be transferred but are less precise in defining boundaries. These types of titles are unlikely to interest foreigners, especially in rural areas.
Another type of title deed is the Por Bor Tor 5 deed, which grants a holder full rights to use and develop the property. This is a more advanced form of title and can be upgraded to a Nor Sor Sam or Chanotte deed. Lastly, Nor Sor Kor 2 is a ‘waiting’ title that can be transferred but does not guarantee full ownership. This is typically used for land in urban areas, but can also be registered as a usufruct or superficies if required.
Obtaining a Power of Attorney
A Power of Attorney Thailand is a legal document in which one person delegates authority to another, granting them the right to act on their behalf. It may be either general or specific, indicating the scope of the powers delegated. In Thailand, a POA is required to complete the property transfer process at the Land Office.
Generally speaking, a POA is valid for three months from the date of signing, after which it needs to be renewed. However, in cases of unforeseen circumstances it is possible to extend this period by obtaining a certificate from the Ministry of Justice.
A legal advisor can assist in drafting a POA that meets the requirements set out by Thai law. This can include clarifying the identity of both parties, indicating their legal names, addresses and identification numbers (including passport number for foreigners). It is also important to clearly specify the extent of the agent’s authority. In the case of real estate transactions, this might include granting authority to sign contracts and submit documents to the Land Office.
In addition, any Power of Attorney drafted outside of Thailand must be authenticated by a local embassy or consulate, and possibly have an apostille attached for international recognition. This additional step ensures that the document can be recognized as valid in Thailand. This can be useful for property owners who need to delegate responsibilities while remaining abroad for business or personal reasons.
Obtaining a Nor Sor 3
There are six types of land title deeds issued by the Thailand Land Department, with the chanote type being the most secure and highly recommended for foreign property buyers. The chanote document shows full ownership of the land and identifies its borders through an accurate survey. The holder of the chanote title is entitled to transfer, sub-divide, and sell the plot. A chanote document will also show numbered concrete posts on the ground that mark the exact boundaries of the land.
The NS3 title deed is similar to the NS3 Gor, but with less accuracy in boundary measurements. This document is still legally valid and the holder can purchase, sell, transfer, or mortgage the land. However, it cannot be upgraded to a chanote without first obtaining the NS3 Gor or an extension of that title.
The S.K.1 land document is basically a notification form that entitles the holder to occupy and use the land for specific purposes, such as agriculture. While it can be sold and transferred, it does not include rights to superficies or usufruct and it is impossible to register rights (sale, mortgage, etc.).
Registering the Transfer
Property title transfer in Thailand is a legal process that requires compliance with government regulations and payment of necessary taxes and fees. It also includes the completion of all necessary paperwork and verification that the buyer is the rightful owner of the property.
Due diligence begins with a thorough review of the property’s land record at the local Land Office. A legal expert examines the document to verify its legitimacy and confirm that it is free from encumbrances, such as mortgages and liens. The review can also reveal restrictions on the property, including pending expropriation, road access limitations, or inclusion in forest reserves.
Once the transfer is complete, the buyer will receive the title deed (Chanote). If additional rights like usufruct or a lease are to be registered, they can usually be completed simultaneously. The buyer should also present their national ID card and house registration (Tabien Baan), or a Foreign Exchange Transaction Form (FET) for condo purchases.
Having a legally transferred title makes it easier to transfer the property should its owner die or decide to sell. It also simplifies inheritance procedures, eliminating legal complications that could result in lengthy court cases and lost property assets. Furthermore, a legally transferred title can be used to secure loans from banks or other financial institutions, as it acts as proof of ownership.