If you own a property in Thailand, you must follow certain procedures to buy and possess the title. The following information will clarify any questions you may have along these lines. Each procedure involves certain steps that must be followed when a transfer of title takes place.

Performing a Title Search

Before you buy property in Thailand, you need to learn more about what you are buying. Conducting a title search is important, as it will determine the following:
  • Whether or not the person selling a property is the actual owner;
  • Whether the property currently has liens, loans, or a mortgage;
  • Checking the original ownership. All land once belonged to the King in Thailand.
In 1901, the country began issuing deeds after the Department of Land was founded. Over time, certain legislative reforms have triggered disputes about land ownership. Some of the official paperwork contains information that will not permit the lease or sale of land. That is why it is important to make sure you are receiving a title that is transferable.

Types of Claims on Property and Land in Thailand

When a title search is conducted, often one of three types of claims are found. Below is an overview of each type of claim:
  1. Por Tor Bor 5, Bai jong (NS-2), or Sor Kor 1 (SK-1) Documentation of this type indicates that land cannot be sold or leased. As the claim matures, however, the country’s Land Department may eventually grant a title on these kinds of certificates.
  2. Nor Sor Sam (NS-3), Nor Sor Sam Gor (NS-3K), or Chanote (NS-4) Parcels that are mortgaged, sold, or leased are represented by these types of title papers, with the Chanote deed considered the most credible.
  3. Condominium Title – Or Cor 2 A foreigner usually finds that buying a condominium is the simplest way to purchase real property in Thailand. That is because the title shows ownership of the condo itself and not ownership for land. The land on which condominiums are developed and built has a separate title. A condominium title is issued in the property developer’s name. The Or Chor title establishes condominium ownership by listing the deed number and location on which the condominium is built. The title also features a sketch that describes a unit’s area, dimensions, name, floor, building, and number. The ownership ratio of common property is added as well.

Why the Land Department Will Revoke a Title

The Land Department in Thailand will not accept a title when the land, it is found, was unlawfully claimed (this type of error may not be found for decades). Unfortunately, in this instance, the current landowner will not receive compensation because the title has been revoked. That is why it is helpful to find this type of error before a sales transaction occurs. If you need the assistance of a property lawyer in Thailand, please contact us.