Property Title Transfer in Thailand is one of the essential steps involved when buying a property. It involves various processes and legal specifications that must be followed.
In general, foreigners should work with a lawyer or legal professional who specializes in real estate law. This will ensure that all required procedures are followed and that the buyer is protected from illegal land transfers.
Obtaining a Title Deed
Before a property can be purchased in Thailand it is important to perform a title deed search. This will serve to identify any outstanding liens and also determine the type of documentation which has been issued. For example, a Por Tor Bor Ha document only gives occupancy rights but does not give full ownership rights to the holder. This type of title can be upgraded to a Nor Sor 3 document or a Chanote, depending on the location of the land.
As a foreigner, you should only consider buying land with a Nor Sor 3, Nor Sor 3 Gor or Chanote title as these are the only documents that show actual rights to the land and can be sold or transferred, leased, mortgaged, usufructed or used as collateral. Other titles such as Sor Kor Nung or Claim Certificates SK-1 are only notification forms of possession and have very little real rights associated with them. These types of documents can only be upgraded to a Nor Sor 4 or a Chanote title once the land has been surveyed with photo satellites and confirmed as freehold.
Obtaining a Power of Attorney
A Power of Attorney is a legal document that authorizes another person (attorney-in-fact or agent) to perform certain actions on the principal’s behalf. SIAM LEGAL’s team of lawyers can draft and notarize a Power of Attorney for any property transaction in Thailand.
Before a property transfer can be completed, the buyer and seller must compile all necessary paperwork, including the sale agreement, original title deed (Chanote), tax receipts, and corporate documentation if applicable. Then, both parties must go to the Land Department to complete the transfer and pay the corresponding fees and taxes.
If the seller is unable to attend, they can make a Power of Attorney to authorize a representative to represent them at the Land Office. This power of attorney must follow the official standards set out by the law, and it must be signed by the appointer and notarized.
Obtaining a Certificate of Registration
The process of registering ownership transfer for condos in Thailand is usually handled by the Department of Lands. The transfer fee is 2% of the appraised value. A buyer must pay the transfer fees in cash or by a bank check. Afterward, the seller must hand over the original title deed and all keys and access cards to the buyer.
If a foreigner is buying a condominium in Thailand, he or she must pay the transfer fees from abroad. Then, the foreigner must obtain a Certificate of Registration from the Department of Lands. The certification will confirm the ownership of the property.
Although foreigners cannot own land in Thailand, the law does allow them to own structures and other improvements constructed on lands. To do this, foreigners must conclude two sets of agreements: a lease agreement for the land and a contract of sale-purchase for the house.
Obtaining a Certificate of Confirmation
The death of a loved one is always distressing but dealing with the deceased’s estate can be especially challenging in Thailand. In many cases, banks or investment companies will require sight of Confirmation before releasing sums due to the beneficiaries of the estate. A solicitor can assist with obtaining this, but it is not strictly necessary.
To obtain a Certificate of Confirmation, you will need to submit several documents. These include:
A Residence Certificate: original and copy. This is available from your local district office or from the embassy that represents your home nation.
A Police Certificate: Original and copy. If you have previously lived in another country, you will need to review the Reciprocity Schedule for information on how to obtain a police certificate. Court and Prison Records (if any): Certified copies. If you were convicted of a crime, it is important to include any records that show you were pardoned or otherwise given clemency.