Thailand is one of the most exotic and beautiful locations in the world. For this reason, it is one of the top tourist destinations and continues to draw new arrivals each year. Many of those coming to Thailand eventually decide to remain in the country as expatriates. When seeking to relocate to any country, the issue of home ownership becomes a paramount concern. Hopefully this piece will shed light upon some of the many facets of Thai Property Law.
Obtaining Real Estate or Property in Thailand
In order to stay in Thailand for the long term many people opt to buy Thai Real Estate. Owning a home in Thailand can be a bit of a risky enterprise since Thailand has many laws that preclude foreign ownership of land. However, there are some ways in which a non-Thai can own or control Thai property.
Thailand Condos
Condos in Thailand are a popular choice for many expats. Under Thai law a foreigner is allowed to own a Thai Condominium provided the Condo meets certain requirements laid out in the Thailand Condominium Act.
Thai Real Estate Lease
A long term lease of Thai Real Estate is another attractive option to many prospective foreign Property owners in Thailand. However, there is some misunderstanding regarding Thai leases. Many people believe that Thai leases are automatically renewable and they can last for over 30 years, this is simply not the case.
Thailand Usufruct
A usufruct of Thai property is another possibility. This is much like a life estate under the common law system in that a usufruct can grant a person the right to the use of land for life. There are many formalities that must be kept in mind when drafting a usufruct which is why it is advisable to have a lawyer prepare a usufruct.
Thai Company Formation for Property Ownership
Another method of "owning" property in Thailand is having a Thai company own the property and have a disproportionate number of voting shares allotted to the non-Thai property "owner," this method allows a non-Thai to keep control of the property while still adhering to Thai law.
|  Sunday March 29, 2009 |
Land ownership title deeds in Thailand
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| For any real estate property transaction in Thailand (purchase, lease, sale, usufruct, superficies or right of habitation) make sure the land title deed is all checked out. Make sure the property is what the title deed says and the person you are dealing with is the legal owner. |
| It is only possible to register a lease, sale, usufruct, superficies or right of habitation and to apply and obtain approval to build on over land with a proper title, meaning Nor Sor Sam (N.S.3), Nor Sor Sam Gor (N.S.4.G) or Chanote (N.S.4.J). Other land claims (like Sor Kor 1, Tor Bor 5, Sor Por Gor 4), which cover large areas of Samui and Thailand are essential possessory rights which have been filed with the districts office (not the Land Department) and upon which a small fee has been paid. Generally used for farming. Transfer of ownership of these land claims (or rent/ lease) can NOT be registered with the relevant authority, the Land Office. It is common practice for farmers to build their homes on such land, however, no official permission and building permits can be granted. Transfer of possesion or use (it is NOT ownership) of such land is governed by local customs and by handshakes. There are no real rights associated with these land claims. Legally the transfer process is not more than handing over the notification form and possession or use of the land from one person to another.
There are two types of rights to private land: the first is the right of possession (possessory right), i.e. people who possess and use the land, the right to possess such land under the Civil and Commercial Code. The second is ownership by a person who has a title deed concerning the land. Sor Kor Nung is not titled land but a notification form of possessed land. It is just a paper that shows the person who notified possession of the land. The person who actually occupies the land may have a better right than the person who has just a notification form. In order to show some form of rights to the untitled land, it is possible to install a fence or a physical boundary of some kind around this land. It may also be possible to build a simple wooden structure upon the land. Some physical presence will be required in order to show some kind of use to which the land has been put. Foreigners are obviously not allowed to claim possession over land. Upgrading
It is in certain circumstances possible (based on the determination of the land by the government, the length of the claim and the use of the land) to upgrade a claim (Sor Kor Nung) to a title, Nor Sor 3 or Chanote depending on the area determination of the land by the government. Approval is often unlikely and the easy money is made by the Thais selling this type of land claims. There is generally only money to be lost with these deals. With tricks, ignorance of the foreigner and the suggested huge profits to be made many have lost their money in these scams.
Nor Sor Sam and Nor Sor Sam Gor are legal certificates that show who has the right to possess the land and use the benefit of the land as an owner. The name showing on the title is the person who has the right to the land and has the legal right to possess the land and use the benefit of the land as an owner (it is not ownership). This right will be recognized by the law and can be used as evidence in any dispute with an ordinary person or the government. It is possible to register a sale or lease and apply and obtain approval to build on this land if building complies with relevant building regulations, zoning and or other laws (environmental protection). The Nor Sor Sam Gor is more accuratley surveyed and has parcel points on the map, and is set by using an aerial survey to set the points and the land area. The right of use has been confirmed and legal acts over the land do not need to be published and it is possible to subdivide in smaller plots.
Nor Sor Sam is not acurately surveyed and this could cause problems in verifying the land area. Nor Sor Sam is a floating map with no parcel points. It is issued for a specific plot of land and is not connected to other land plots. Should the land not have clearly physical boundries the boundries should be confirmed by the neighbouring landowners. The Nor Sor Sam is a legal certificate of possession, however possession has not been confirmed and any legal acts must be published for 30 days, to see if anyone wishes to contests the right of use and possession. A problem with the Nor Sor Sam title is the lack of an accurate surveyed boundry (which can lead to boundry disputes) and possible hostile possession (claims over the land by someone else not registered as the person who has the right to the land). Any action of removal of disturbance must be entered within one year from the time of the disturbance. Section 1373 Civil and Commercial Code; 'Where the property is an immovable entered in the land register, the person whose name is on the register is presumed to have possessory right over it'.
Section 1374 Civil and Commercial Code; 'Where a possessor is disturbed in his possession by unlawful interference, he is entitled to have the disturbance removed. If further disturbance is to be apprehended the possessor may apply for an injunction. An action for removal of disturbance must be entered within one year from the time of disturbance'. This is 10 years in case of a Chanote (a certificate of ownership). If a squatter is in possession of land for an uninterrupted period of 10 years in case of a Chanote ( section 1382) ('and have peacefully and openly possessed the property belonging to another, with the intention to be its owner he acquires ownership of it'), they can apply to the Land Office for a deed of ownership. So, if you hold land under Chanote but a squatter takes possession and you do nothing to remove that squatter from the land for 10 years, then you could lose that land to the squatter. As this is only one year in case of a Nor Sor Sam (Gor) it is not uncommon for someone else to claim possession over (part of) such land. Chanote or Nor Sor 4 Jor is a certificate of true ownership for land and the only true land title deed. Land held under Chanotes are accurately surveyed and GPS plotted in relation to a national survey grid and marked by unique numbered marker posts set in the ground. Chanote titles are found in the more and longer developed areas of Thailand (for example the Bangkok area has only Chanote title deeds). Legal acts (sale) do not have to be published. Sor Bor Kor is an allotment of land from the land reformative committee and are true title deeds and accurately surveyed and pegged (simmilar to a Chanote), however they cannot be sold or leased. Sor Bor Kor may only be transferred under last will or testament. It is not possible to purchase or lease Sor Bor Kor land. 1 Rai 4 Ngan (or 1600 Sq.m.)
1 Ngan 100 Wah (or 400 Sq.m.)
1 Wah 4 Sq.m.
1 Acre 2.5 Rai (approx.)
1 Hectare 6.25 Rai (approx.) Metric measures are usually used in the construction and measurement of buildings. | |
