Property Title Transfer is a vital part of any real estate transaction. It ensures that a buyer’s ownership is verified and recorded, and protects against future disputes and legal issues.
Getting your land title transferred correctly is essential for complying with Thai property law and protecting your investment. Conducting thorough due diligence, ensuring tax and fee payments are fulfilled, and seeking legal assistance is key to avoiding potential complications.
Sor Kor 1
Sor Kor 1 is an old land deed that merely notifies the possession of land. It entitles the holder to occupy and use the land but not to sell it or transfer it. It cannot be used as security for a loan or mortgage and it cannot be subdivided. Lands with this document are not surveyed and the boundaries may not be accurate.
Sor kor 1 land can be upgraded to Nor Sor 3 Gor or even Chanote, but only with an official survey from the Land Department. If this is not done, the new owner will have no legal rights over the property and it may not be possible to obtain a bank mortgage or register a lease, usufruct, or other land rights.
Nor Sor 3 Gor is a higher class of land title and entitles the holder to full use and occupation rights, but it does not guarantee ownership of the land. It can be sold, transferred, and mortgaged. It is also one of the only forms of land title that can be transferred to foreigners.
The holder of Nor Sor 3 can also apply to have it upgraded to Chanote, which is the most secure form of land title in Thailand. However, it is not an easy process and it can take up to seven years to complete.
Sor Kor 2
A Sor Kor 2 document defines right of occupation rather than ownership and entitles the holder to occupy the land for certain uses. This type of title is not a legal guarantee and the holder does not have full rights over the property. However, it can be transferred through sale or inheritance. It is also not possible to register any rights such as a lease, usufruct, or mortgage on this type of land. However, it is possible to upgrade this land document to Nor Sor 3, Nor Sor 3 Gor, or even a Chanote title through the Land Department, depending on its location.
A chanotte is a legal guarantee that a person has possessory rights over a land plot, but it does not guarantee full ownership. However, a chanotte can be used as security for a bank loan and may be upgraded to a Nor Sor 3 or Nor Sor 3 Gor title by applying at the local land office.
It is important to verify the title deed before buying a property in Thailand. This process includes doing due diligence, verifying ownership, and identifying any registered liens. Additionally, a land survey is a necessary step to reduce the risk of future boundary disputes with neighboring owners. Ultimately, the most secure and enforceable title is a Chanote. This type of title entitles the owner to absolute ownership and possession rights.
Nor Sor 3 Gor
Nor Sor 3 Gor is an official document showing land ownership rights and can be sold, transferred or mortgaged. This type of title is considered the second best and is used while awaiting a full Chanote. It shows accurate measurements of the land and boundaries which are verified by an aerial survey. The NS3Kor has the same legal basis as a Chanote and can be upgraded to it with due process by the Land Office. It also shows that the holder has confirmed possession rights and can use the land to the exclusion of others.
SK1 is an official notification form stating that the holder has occupied and used the land for a certain period of time, granting them some property rights. This document allows the holder to sell or transfer their ownership rights but it cannot be registered as a formal deed or even as a legal act, meaning that the transfer is only done via inheritance.
Por Bor Tor 5 (Ha) is a utilization certificate issued for members of a community. It is not considered a land title and can only be leased or mortgaged but it does show that the occupier has paid taxes for the usage of the land. However, this title is not used in urban areas and does not show exact measurements or boundaries.
Chanote
Investing in real estate in Thailand requires careful attention to legal details. This includes doing due diligence, verifying land title deeds, and identifying any registered liens. A land survey is also important to reduce the risk of future boundary disputes with neighboring property owners.
The most secure and preferred type of land title is a Chanote, which grants full ownership rights. These documents are backed by the government’s land department and provide detailed information about parcel boundaries, including concrete or metal survey markers. In addition, holders of these documents have more flexibility when it comes to selling or transferring their land.
Property Title Transfer in Thailand is a complicated process and understanding the different types of land titles is essential. The most credible and preferred title is a Chanote, which provides true ownership rights, precise surveys, unique marker posts, and no general restrictions on usage or public notice requirements.
The next level of title is Nor Sor Sor 3 Gor, which is an upgraded version of NS3. In this case, the land is inspected and parcel points are set via aerial survey. This title allows owners to subdivide their plots and sell or lease the land without having to publish a 30-day public notice. Finally, the lowest level of title is Nor Sor Sam or NS-3, which gives occupants confirmed possession rights but does not imply true ownership.
