Real Estate Ownership Documents in Thailand

In every transaction involving real estate, issues of land ownership and title deeds are invariably central. In Thailand, title deeds are official documents provided by government departments, typically delineating an individual’s legal claim to land (notably in the case of a Chanote title deed, which confirms ownership) and any formal burdens on the property like mortgages and leases.

Before proceeding with any property deal, it’s imperative to scrutinize the title deed to prevent misunderstandings and legal disputes. Instances abound where individuals believe they have erected structures on their own property, only to discover they have encroached upon a neighbor’s land. Some assume they have purchased a specific area of land, but later learn their actual holdings are smaller. There are also those who acquire a house, assuming it to be under the seller’s name, but the land on which it sits belongs to another.

To sidestep these potential pitfalls, engaging a lawyer might be prudent, or you can allow Home In Phuket to guide you through the nuances, as elucidated in the following article. It’s important to note that while the Thai Land Department issues six types of land title documents, there are also five other titles issued by various government bodies as evidence of possession rights. However, this article will focus exclusively on the six land titles dispensed by the Land Department.

Sor Kor Nung (S.K.1)

The S.K.1 document serves as an official notice of an individual’s land occupation but does not confer any actual proprietary rights. It permits the possessor to utilize and inhabit the land, typically for agricultural activities. While the land can be transferred through sale or inherited, the legal transfer merely involves handing over the S.K.1 document and the rights to use or occupy the land from one party to another. It is important to note that it is not permissible to register any legal rights such as sales, leases, usufructs, mortgages, etc., on this category of land. Since 1972, the issuance of new S.K.1 documents has ceased, and these documents cannot be converted into Nor Sor forms or Chanote titles.

Nor Sor Song (N.S.2)

The Nor Sor Song, abbreviated as N.S.2, represents an official authorization provided by the land authorities granting an individual the right to temporarily occupy and exploit a parcel of land. The recipient of this permit must initiate the occupation and use of the land within six months and must fully utilize the land no later than three years from the date of receiving the N.S.2 document. The land associated with an N.S.2 cannot be sold or transferred, with the sole exception being through inheritance. This provisional certificate can be upgraded to a Nor Sor Sam (N.S. 3), Nor Sor Sam Gor, or a full ownership title known as a Chanote, depending on the geographical positioning of the property. Notwithstanding the upgrade, restrictions on selling or transferring the land remain in force.

Nor Sor Saam (N.S.3)

The N.S.3 certificate validates an individual’s entitlement to occupy a specified parcel of land. However, this entitlement requires the verification of land boundaries in relation to adjacent plots. Unlike other land titles, the N.S.3 does not include precise parcel points or the placement of numbered concrete posts that are typically embedded to delineate property boundaries. The individual whose name appears on the certificate has the legitimate authority to manage and utilize the land similarly to an owner, though it does not confer actual land ownership. The rights accompanying the N.S.3 allow for the sale or lease of the land, as well as the provision to seek permissions for construction, provided such developments adhere to local building codes, zoning laws, and urban regulations. Any intended sale of the land is subject to a mandatory 30-day public notification period.

Nor Sor Saam Gor (N.S.3.G)

The Nor Sor Saam Gor (N.S.3.G) and Nor Sor Saam Khor (N.S.3.K) are types of land titles in Thailand, which indicate the status of the land and the rights associated with it. These titles are less common than the Chanote title, which is the highest and most secure type of land title deed in Thailand.

Nor Sor Saam Gor (N.S.3.G):

• This title signifies that the land has been measured and surveyed in relation to neighboring plots.
• Boundaries of the land are confirmed via an aerial survey, which provides a more accurate plot of land.
• Holders of this type of title have the right to use the land and can engage in legal acts such as selling or transferring the land without the need to announce such acts publicly.
• Subdivision of the land into smaller plots is also possible, making it more flexible for development and sale.

Nor Sor Saam Khor (N.S.3.K):

• Similar to the N.S.3.G, this title means the land has been measured and surveyed, but the plot points are not set by an aerial survey. This may mean the land boundaries are not as accurately defined as those with an N.S.3.G.
• Despite the lack of aerial surveying, this title still grants the holder the right to use the land.
• It also allows for legal acts like sales, and it can be subdivided.

The “Garudas” mentioned are a significant symbol in Thailand, often used to indicate official documents or state property. The presence of the Garuda symbol on a land title document signifies its authenticity and legal standing.

These titles are part of a complex system of land ownership in Thailand, which includes several other categories and types of documentation. The accuracy of the land boundaries and the security of the land rights can have substantial implications for landowners and potential investors, affecting everything from the ease of transfer to the potential for disputes. Therefore, a title deed like the Chanote, which includes GPS coordinates for the land, is usually more desirable.

Nor Sor Si Jor (N.S.4.J or Chanote)

The Nor Sor 4 Jor (N.S.4.J) or Chanote is indeed the most secure type of land title in Thailand. It represents the highest form of land ownership deed and is highly sought after by property buyers, both local and foreign.

Here’s a more detailed breakdown of what the Chanote entails:

1. **Ownership Proof**: The Chanote is a certificate that provides incontrovertible evidence of ownership. The person or entity whose name is on the Chanote is the legal owner of the land.

2. **Land Survey**: Land plots with a Chanote title have been accurately surveyed. This includes GPS plotting, which means the boundaries of the land have been defined with precise coordinates relative to the national survey grid.

3. **Boundary Markers**: Physical markers with unique numbers are placed on the land. These numbered marker posts are set in the ground at the corners of the land plot, making the boundaries clear and undisputable.

4. **Location**: While historically, Chanote titles may have been limited to more developed areas of Thailand, the government has been working on extending this type of land title to more regions as part of land reform and development programs.

5. **Transactions**: One of the benefits of the Chanote is that land transactions (like selling or leasing) do not need to be publicly announced or published. This can simplify the transaction process.

6. **Land Use and Subdivision**: There are no restrictions on how the land can be used, assuming the owner complies with local zoning laws and regulations. Moreover, owners of land with a Chanote title deed can subdivide the land into smaller plots, which can then be sold or developed independently.

For foreigners looking to buy land in Thailand, it’s important to note that while they cannot directly own land under Thai law, they can invest in land through a variety of structures such as long-term leases, setting up a Thai company (with certain restrictions), or through a Thai spouse. The Chanote is particularly appealing to foreign investors because of the security it provides; however, they would need to navigate the legal framework to ensure compliance with Thai law.

In addition to understanding the various forms of land rights, it is also important to become familiar with the system of land measurement used in Thailand.