The Thai land title system, established since the creation of the Department of Land in 1901, classifies various documents indicating land ownership. While some documents signify complete ownership, others merely grant usage rights. Knowing these distinctions is vital for any potential buyer.
The Thai Land Title System
Historically, all land in Thailand was under royal ownership. Over the years, numerous reforms have led to a complex system of land titles. From claim certificates like Por Tor Bor 5 to fully documented titles like Chanote, each document holds different levels of legal weight in terms of ownership and transfer rights.
- Chanote Title Deed (NS-4): Represents complete ownership, with the land boundaries confirmed by satellite images. It’s the most secure type of land title in Thailand.
- Nor Sor Sam (NS-3) & Nor Sor Sam Gor (NS-3K): These certificates offer ownership rights, but with varying degrees of boundary confirmations and restrictions on land use.
- Sor Kor Nueng (SK-1): Validates land occupancy rather than ownership, allowing for use and inheritance but not outright sale.
The Title Search Process in Thailand
Understanding the title search process in Thailand is vital for anyone engaging in property transactions. This section outlines the steps involved and the importance of this process in the Thai real estate landscape.
Importance of Property Title Search
A property title search in Thailand is a critical step to ensure that you are aware of what you are purchasing. This search confirms if the seller is the true owner, identifies any registered encumbrances like loans or liens, and traces the title’s history back to the original holder, which in Thailand, often traces back to the king
Types of Land and Property Claims
Primary Documents: Include land title deeds with maps, pre-emption title deeds, and certificates. These documents also show registered encumbrances such as mortgages and leases
- Por Tor Bor 5, Bai Jong (NS-2), and Sor Kor 1 (SK-1): Used for establishing a claim to the land but do not allow for leasing or selling.
- Nor Sor Sam (NS-3), Nor Sor Sam Gor (NS-3K), and Chanote (NS-4): Higher class documents allowing for mortgages, leases, and sales, with Chanote offering the highest credibility.
Condominium Titles: Different from land titles, these show ownership of a condo unit and include details like unit size, location, and ownership ratio of common property
Revocation of Title by the Land Department
The Land Department has the authority to annul or amend titles in cases of inaccuracy or illegality. This emphasizes the importance of a thorough title search to detect any faults before the title may be revoked, as errors might persist for decades without compensation to the current landowner
Title Search Report
Upon completion of a title search, a comprehensive report is provided. This report includes a description of the land or property, dimensions, verification of the title deed type, and a history of all previous and current owners. The report is a crucial document that provides legal clarity and assurance.