Property Title Transfer in Thailand. The Property Title Transfer process in Thailand can vary based on the property type and location. It is advisable to consult with legal professionals and experts familiar with Thai property laws to ensure the process is smooth and legally compliant.
Due diligence is an important step in the property buying process and should include verifying ownership, surveying the property boundaries, and checking for liens. In addition, buyers must pay a transfer fee and taxes.
Buying a property
A property purchase in Thailand involves several steps. One of the most important is conducting due diligence, which includes checking the title deed and ensuring that the land is free of liens or mortgages. The buyer must also sign a sales contract and pay a transfer fee and stamp duty.
To complete the property transfer process, both the seller and buyer must visit the local Land Office in person. The process usually takes an hour or less. If the seller cannot attend, he or she can give power of attorney to someone else to represent him or her. This power of attorney must be certified by a lawyer or a notary public.
The land department in Thailand issues a document known as the Chanote, which proves ownership. It is a vital document that provides details about the land and its boundaries. Alternatively, foreigners can obtain a Nor Sor 3 or Nor Sor 3 Gor document to prove ownership of a property. However, these documents do not offer full use rights, and the owner must apply for a full Chanote to enjoy their property in Thailand.
Obtaining a title deed (Chanote)
One of the most important things that a foreigner should do when buying property in Thailand is to have their land title deed verified. This will identify any outstanding liens and also determine the type of document that has been issued. It is not unusual for a land right document to have areas of the property misdescribed which can lead to many problems. For example, a chanote may say 3 Rai of land but in reality it might only be 2 Rai. This is why due diligence has to be done and a Thai property lawyer should investigate.
A Por Tor Bor Ha is a title that enables the owner to build and use the land but does not give them ownership of the property. The document can be upgraded to Sor Kor Nung after 10 years but it is not a title deed that I would recommend a foreigner to buy. It is possible to upgrade these documents but this will take a long time and is expensive.
Completing the transfer process
The final step in transferring ownership of property in Thailand is to visit the local Land Office with the seller and buyer, or their authorized representatives. The officers will review all documents and update the title deeds. This is an important step to make sure the transfer process is complete.
Once the documents have been reviewed and approved by the Land Office, a transfer fee must be paid. The amount of this fee varies by region and can be influenced by additional fees and taxes. These include transfer fees, specific business tax, stamp duty, and withholding tax.
It is advisable to consult with legal professionals and real estate experts familiar with Thai property law when navigating this process. They can help you prepare a sales contract that defines the terms of the purchase and ensures compliance with local regulations. They can also help you arrange for the change of utilities and services into your name.
Change of utilities and services
After completing the property title transfer process, it is important to change utility accounts and services into your name. This ensures that you receive uninterrupted service. The process of changing utilities and services may vary depending on the type of property you own.
The land transfer process in Thailand can be complicated, and it is advisable to hire an attorney or authorized representative with knowledge of Thai law and local procedures. This person can assist you in preparing and submitting the required documents. They can also help you navigate the Land Department’s complex rules and regulations.
The most secure form of title deed in Thailand is a Chanote, which designates full ownership of a piece of land and accurately surveyed GPS plotted borders. It also enables the owner to pass it on to their heirs. Foreigners can buy condominiums that are registered under this type of land title, but they must be joint owners with a Thai citizen in order to avoid paying extra taxes.