Thailand Property Taxes12/19/2016
Importance of Title Search
Before making any large purchase it is important to make sure you know what you are purchasing. A title search is “highly advised” before purchasing any kind of real property, whether it is a piece of land or a condominium. These are the reasons a title search is a “must”
- A title search is done to determine whether the person selling you the property is the true owner of the property and free to sell it to you.
- It also will determine if there are any registered encumbrances on the property such as a loan, lien or a mortgage.
- A title search traces title to the land back to the original property holder. In Thailand all land originally belonged to the king.
Thailand began issuing deeds to private real estate when the Department of Land established in 1901. Over the years, numerous land reform initiatives have resulted in some confusion over who owns what. A wide variety of official documents are used to show land ownership, some of which do not allow for the sale or lease of the land.
Different Types of Claims on Land and Property
The Por Tor Bor 5, Bai Jong (NS-2) and Sor Kor 1 (SK-1)
- Used to establish a claim to the land. Land ownership, which is only evidenced by one of these documents cannot be leased or sold. But as the claim matures, the Land Department may eventually grant a real title to land based on these claim certificates.
Nor Sor Sam (NS-3), Nor Sor Sam Gor (NS-3K) and Chanote (NS-4)
- A higher class of documents used for land claims that have at least been ‘partially or fully documented’ by the Land title office. Parcels represented by these title documents can be mortgaged, leased, and sold. The deed with the highest credibility is the Chanote.
Or Chor 2 – Condominium Title
- Buying a condominium is the easiest way for a foreigner to buy real property in Thailand.
- Unlike land titles, the Condominium Title shows ownership of a condo unit, not a parcel of land. The land the condo development is built on having its own separate title. Condominium titles are originally issued in the name of the property developer.
- The Or Chor 2, or Condominium Title, establishes condominium ownership. It lists the location and deed number of the plot of land the condominium is built on.
- The title also includes a sketch of the condo unit, its dimensions and area, and identifying information such as the unit name, number, floor, and building.
- It also lists the ownership ratio of common property.
Land Department revokes the title
- This happens when the Land Department discovers the original land which the title was based on was fraudulently or unlawfully claimed government land.
- These errors may persist for decades before they are discovered and the title is revoked.
- Although the errors are usually not the fault of the present landowner, the landowner does not receive compensation when their title is revoked.
- The title search is very important to detect these faults before the title may be revoked.