Title deeds in Thailand are legal documents that define the ownership, rights, and boundaries of land or property. Understanding the different types of title deeds is crucial for ensuring that your ownership rights are protected. Not all title deeds grant full ownership, and some only allow limited use of the land. The process of verifying, transferring, or upgrading title deeds requires due diligence and legal expertise.

1. Types of Title Deeds in Thailand

1.1 Chanote (Nor Sor 4 Jor) – Full Ownership

• Most secure and recognized title deed in Thailand.
• Provides full ownership rights with accurately measured boundaries verified by GPS.
• Allows the owner to sell, lease, or mortgage the property.

1.2 Nor Sor 3 Gor – Certifiable Ownership

• Indicates ownership but does not offer the same precision in boundary measurements as a Chanote.
• Can be upgraded to a Chanote with additional surveys and verification.
• Suitable for buying and developing land.

1.3 Nor Sor 3 – Land Utilization Certificate

• Recognizes possession but not full ownership.
• Boundaries may not be clearly marked, and additional surveying is needed for any upgrades or transfer.
• Common in rural areas.

1.4 Sor Kor 1 – Land Claim Certificate

• A preliminary document indicating a claim on the land.
• Cannot be sold or transferred to third parties except through inheritance.

2. Importance of Verifying Title Deeds

Before purchasing or leasing property in Thailand, it is essential to conduct a title deed verification through the Land Department. This ensures that:

1. The title deed is authentic and valid.
2. There are no encumbrances or mortgages registered on the property.
3. The zoning and land use restrictions are understood.

3. Transferring Title Deeds

3.1 Steps in the Transfer Process

1. Due Diligence – Verify the title deed with the Land Department.
2. Contract Signing – Draft a purchase agreement outlining terms and conditions.
3. Pay Transfer Fees and Taxes – Fees include:
   • 2% Transfer Fee (based on the appraised value).
   • Specific Business Tax (if applicable).
   • Stamp Duty and Withholding Tax for individual sellers.
4. Registration at the Land Department – The new owner’s name is recorded on the title deed.

3.2 Transfer Fees and Taxes

• Transfer Fee: 2% of the appraised property value.
• Stamp Duty: 0.5% of the appraised value (if exempt from specific business tax).
• Withholding Tax: Calculated based on the seller’s income bracket.

4. Foreign Ownership and Title Deeds

Under Thai law, foreigners cannot own land outright, but they can:

• Own condominiums under the foreign ownership quota (not exceeding 49% of the total building).
• Lease land for up to 30 years with renewable options.
• Invest through a Thai-registered company under specific conditions.

5. Common Issues and How to Avoid Them

1. Encumbrances or Disputes: Ensure that the property is free of any claims or disputes.
2. Fraudulent Titles: Work with a real estate lawyer to verify the title’s authenticity.
3. Unclear Boundaries: Hire a surveyor to confirm property boundaries, especially for Nor Sor 3 titles.

6. Upgrading Title Deeds

Owners of Nor Sor 3 or Sor Kor 1 titles may apply to upgrade their titles to Chanote status by submitting an application to the Land Department. This process includes boundary surveys and approval from relevant authorities.

Conclusion

Title deeds in Thailand play a fundamental role in determining ownership and usage rights for land and property. Understanding the different types of title deeds and conducting thorough due diligence is essential for protecting your investment. Whether you’re a Thai national or a foreign buyer, consulting a real estate lawyer and the Land Department will help you navigate the complexities of title deeds and ensure a secure property transaction.