Title Deeds in Thailand

Title Deeds in Thailand. In Thailand, land ownership and property rights are governed by a structured system of title deeds, each reflecting different levels of ownership, possession, and legal enforceability. Unlike some jurisdictions where a single type of title exists, Thailand employs a hierarchical classification of land documents. This structure requires careful legal understanding, especially for foreign investors, property developers, and expatriates purchasing real estate under Thai law.

This article provides an in-depth explanation of the types of title deeds (chanote), their legal significance, registration process, restrictions, and implications for real estate transactions in Thailand.

Legal Framework

Land ownership and title registration in Thailand are governed by:

• Land Code B.E. 2497 (1954)

• Civil and Commercial Code

• Land Reform for Agriculture Act

• Condominium Act B.E. 2522 (1979) (for strata-title condominiums)

• Ministerial regulations issued by the Ministry of Interior and enforced through the Department of Lands (DOL)

Land title documents are administered through the Land Offices, under the Ministry of Interior.

Land Title Classification System in Thailand

Thailand recognizes various land title documents, each conferring different legal rights. The most common are:

1️⃣ Chanote Title (Nor Sor 4 Jor)

• The strongest and most secure form of land ownership.

• Issued after full cadastral surveying with satellite accuracy.

• Confirms full private ownership rights and right to sell, transfer, lease, or mortgage the land.

• Boundaries are demarcated with numbered concrete posts installed by the Land Office.

• Can be used in litigation, inheritance, and commercial financing.

• Only this title type is recommended for foreign investment in condominium projects.

✅ Ideal for buying, selling, or leasing with maximum legal protection.

2️⃣ Nor Sor 3 Gor (NS3G)

• Recognizes land possession with confirmed boundaries and partial surveying.

• The owner has possession rights and may transfer, lease, or develop the land.

• The title can be upgraded to Chanote, subject to Land Office re-survey.

• Ownership may still be challenged in rare cases.

⚠ Transactions must be registered at the Land Office, but property boundaries may not be fixed with the same precision as Chanote.

3️⃣ Nor Sor 3 (NS3)

• A lower form of land possession document.

• Boundaries are not surveyed or marked, and location is defined by reference to neighboring plots.

• Titleholders may use the land and transfer rights, but with greater uncertainty.

• Difficult to obtain accurate valuation or financing.

⚠ Legal due diligence is crucial before purchasing land under NS3.

4️⃣ Sor Kor 1 and Others

• Evidence of land use or occupation, not ownership.

• May include documents such as Sor Kor 1, Por Bor Tor 5, or S.K. 1.

• Can only be upgraded to higher titles under strict conditions.

• Typically found in rural or disputed areas.

❌ Not recommended for foreign buyers or developers.

Condominium Titles

Under the Condominium Act, individual unit ownership is recognized via a unit title deed, which includes:

• Unit floor plan

• Unit size in square meters

• Ratio of co-ownership in common property

• Reference to land Chanote of the building

Foreigners may legally own condominium units up to 49% of total floor space, provided that funds are remitted in foreign currency with supporting Foreign Exchange Transaction (FET) forms.

Foreign Ownership and Title Restrictions

Foreigners cannot own freehold land under Thai law, except under narrow exemptions (e.g., BOI-promoted projects, inheritance with approval from the Ministry of Interior). However, they can:

• Own condominiums under Section 19 of the Condominium Act.

• Lease land for up to 30 years, renewable.

• Hold usufruct or habitation rights.

• Acquire land via Thai-registered companies (with restrictions).

Land held improperly by foreigners may be subject to forfeiture under Section 96 of the Land Code.

Verifying Title Deeds

Before any transaction, the buyer (or legal counsel) should:

• Obtain a copy of the title deed (Chanote or NS3G).

• Conduct a title search at the Land Office:

  • Ownership history

  • Registered encumbrances (e.g., mortgages, leases, servitudes)

  • Disputes or pending litigation

  • Zoning and building restrictions

• Physically inspect the land to ensure boundaries match the deed.

In many cases, Land Offices require that foreign buyers be represented by a Thai lawyer or authorized agent when registering transactions.

Land Measurement System in Thailand

Thai title deeds use a traditional system of land measurement:

• Wah = 4 square meters

• Ngan = 100 wah = 400 square meters

• Rai = 4 ngan = 1,600 square meters

E.g., 1 Rai = 0.16 hectares = approx. 0.395 acres

Measurements must be verified during due diligence, especially when land is being subdivided or developed.

Registering a Transfer of Ownership

When buying land or a condominium:

1. Buyer and seller appear at the local Land Office.

2. A government officer verifies identity, title, and consent.

3. Applicable taxes and fees are calculated:

   • Transfer fee (2%)

   • Withholding tax (1% of appraised or sale value)

   • Specific Business Tax or Stamp Duty (depending on ownership duration)

4. The transaction is registered, and a new title deed is issued in the buyer’s name.

Encumbrances and Third-Party Rights

A title deed may reflect:

• Mortgages (e.g., bank loans)

• Long-term leases

• Servitudes or easements (e.g., access rights)

• Usufruct, superficies, or habitation rights

All such rights must be recorded on the deed. Unregistered rights are not enforceable against third parties under Thai law.

Upgrading Title Deeds

Land with lower titles (NS3, Sor Kor 1) may be upgraded to Chanote if:

• Located in an area zoned for such issuance

• The owner can prove possession and legal use

• A cadastral survey is conducted by the Land Office

The process can take months and may involve public notification to allow objections.

Legal Risks and Disputes

⚠ Fake or forged deeds have been reported, especially in high-demand areas. All titles must be verified directly at the Land Office.

⚠ Co-ownership disputes: If a Chanote title lists multiple names (e.g., husband and wife), one cannot unilaterally sell the land.

⚠ Boundary encroachments: These are common with NS3 titles lacking fixed markers.

Conclusion

Title deeds in Thailand are central to real estate ownership and investment, but their complexity requires rigorous legal understanding. Only Chanote titles offer full ownership rights, and all land transactions must be carefully vetted through official channels. For foreign buyers, it is essential to work with qualified legal professionals to conduct due diligence, verify title authenticity, and structure transactions within the bounds of Thai law.