Buy, sell, rent, own, and manage a condo unit - legal topics for expats. Everything you need to know about condominiums in Thailand: what a condominium is, how to buy one, who can legally own one, transfer taxes, inheritance rules, condo management, leasehold condos, sale and purchase agreements, and more. We answer practical legal questions with insights from a Thai lawyer. Simply scroll down, pick a topic, and click “Read more.”.

Title deeds issued by the Land Department and other government departments

Land rights and land documents in Thailand

A LAND TITLE DEED issued by the relevant Thai government (land) department shows a person's rights to land (ownership if it is a Chanote title deed) and registered encumbrances such as mortgages, leases, etc. on a property. Foreigners are not allowed to own land and cannot be named as the owner of land in Thailand but they can be the holder of certain rights like lease, right of usufruct, habitation, superficies, mortgage which can be registered in their name on the title deed - read more...

CHANOTEThis is a certificate for ownership of land. A person having their name shown on the deed has the legal right to the land, and can use it as evidence to confirm the right to government authorities. The title deed has been issued by using GPS to set the area and boundaries of the land, which is a very accurate method. Any legal acts may be done immediately, as per the right of ownership.: from the land title documents issued by the Thailand Land Department only the Nor. Sor. 4 Jor or Chanote is a true land ownership title deed.

The 6 main title documents issued by the Land Department for individual use relate to temporary occupation, use and occupation, confirmed right of possession or notification of possession of land (i.e. the Sor Kor 1). In fact all the land documents issued by the Land Department, except the chanote, are still officially government land. The Nor Sor 3 title deeds are rights of confirmed possession similar to ownership rights, however are not true ownership documents.

Related: Tanslation of a land tile deed, Thailand Land Code Act

Overview of the main land titles issued by the Thailand Land Department:

Sor Kor 1 (S.K. 1) | Nor. Sor. Song (N.S. 2) | Nor. Sor. Saam (N.S. 3) | Nor. Sor. Saam Gor (N.S. 3 G.) | Nor. Sor. Saam Khor (N.S. 3 K.) | Nor. Sor. Ha (N.S. 5) | Nor Sor Si Jor (N.S.4.J) | LAND DOCUMENTS ISSUED BY OTHER DEPARTMENTS Sor. Por. Gor. 4-01 (S.P.G. 4-01) | Sor. Tor. Gor. (S.T.G.) | Por. Bor. Tor. 5 (P.B.T. 5) | Nor. Kor. 3 (N.K. 3) | Gor. Sor. Nor. 5 (G.S.N. 5)

NOTE: it is basically ONLY possible to register rights (sale, lease, usufruct, superficies, etc.) with the Land Department and obtain official building approval over land with a confirmed right of possession (the Nor.Sor.3 land titles) or full ownership title (Nor.Sor.4.Jor/ Chanote title deed). The modern land title deeds Nor Sor 3 and the Chanote issued by the Land Department should look as the document image above, but, depending on the period the document was issued the land ownership documents could vary in design, garuda color and even size. The rights associated with land titles are in more detail described further down in this page. The most secure land title offering full individual ownership in Thailand is the Chanote (officially identified as Nor.Sor.4.Jor), followed by the Nor Sor Saam Gor/ Khor which offer confirmed right of possession. The Nor.Sor.3 without extension is less interesting, mainly because of the lesser rights and survey status associated with this title.

Sor Kor Nung (1)

The S.K.1 land document is a notification form of possession of land and has little real rights associated with it. It entitles the holder to occupy and use the land (generally for farming). The person who actually occupies the land may have a better right than the person who has just a notification form. This land may be sold and transferred by inheritance. Legally the transfer process is not more than handing over the notification form and possession or use of the land from one person to another. It is not possible to register rights (sale, lease, usufruct, mortgage, etc.) over this type of land. Depending on the land’s location, this document may be upgraded to a title deed Nor. Sor. 3, Nor. Sor. 3 Gor or Nor. Sor. 4 Jor (Chanote).

The Land Department has not issued any new Sor Kor Nung documents since 1972. It is currently NOT possible any more to upgrade a Nor Sor 1 to a full title deed with the Land Department read more...

Nor Sor Song (2)

The N.S.2 is a consent letter issued by the land department to the holder. This document entitles the holder to occupy and use the land for a temporary period of time. The holder has to commence occupation and using the N.S. 2 land within 6 months and has to complete the utilization of the land within 3 years from the receipt of N.S.2. This land may not be sold or transferred except by inheritance. Depending on the land’s location, this document may be upgraded to Nor.Sor. 3, Nor.Sor. 3 Gor or Nor. Sor. 4 Jor (Chanote), however, after the upgrade the prohibition for sale or transfer is still effective and in full force.

Nor Sor Saam (3)

The N.S.3 is a title deed which shows a person's right to possess a certain plot of land, but the land borders must be confirmed with neighboring plots. There are no so called parcel points or numbered concrete posts which are hammered into the ground to mark the boundaries of the land. The name showing on the title is the person who has the right to the land and has the legal right to possess the land and use the benefit of the land as an owner (it is not actual full ownership). This right will be recognized by the law and can be used as evidence in any dispute with an ordinary person or the government. It is possible to register a sale or lease and apply and obtain approval to build on this land if building complies with relevant building regulations, zoning and or other laws (e.g. environmental protection). The owner may burden the land (mortgage, lease, etc.) and register this with the Land Department. The land may be sold subject to a 30-day public notice period.

A problem with the Nor Sor Saam title (as opposed to a Chanote or Nor Sor Saam Gor title) is that it is not true land ownership or confirmed right of possession but a right of possession over a land area without an accurate surveyed boundary which often lead to boundary disputes when transferring/selling or upgrading such land during the notice 30-day period and possible hostile possession over such land under the Civil and Commercial Code (book 4) - i.e. claims over the land by someone else not registered as the person who has the registered rights to the land.

Nor Sor Saam (3) Gor

The N.S.3.G has the same legal basis as the Nor. Sor Saam however the boundaries of the land are defined and the land is accurately surveyed in relation to neighbouring land areas (the land area parcel points are set by using an aerial survey), the right of use has been confirmed and legal acts concerning the land, such as sale, do not need to be published and it is possible to register rights against the land and subdivide the land in smaller plots.

Nor Sor Saam (3) Khor

The N.S.3.K is similar to the N.S.3 Gor however is surveyed and issued in an area which has no parcel points set by using an aerial survey. This document issued by land officer. There are no restriction for the use of the land and there is no need to publicize any legal acts, and it is possible to subdivide the land into smaller plots.

Nor Sor Si (4) Jor (Chanote)

The N.S.4.J or Chanote is a certificate of true ownership for land and the only true ownership land title deed. Land held under Chanotes are accurately surveyed and GPS plotted in relation to a national survey grid and marked by unique numbered marker posts set in the ground. Chanote titles are found in the more developed areas of Thailand. Legal acts (sale) do not have to be published. There are no general restrictions on the use and the land can be sub-divided.

Note:

• In some areas of Thailand full land deeds have been issued in a land reform programme but contain restrictions such as the right to sell the land within a period of time of issuance ownership rights (e.g. not having the right to sell or encumber the land within a period of 10 years).
• The land area stated in a Chanote title deed should be accurate, however, with the right connections it could have been manipulated. E.g. a Chanote states 3 Rai but the actual size after a private survey turns out to be 2 Rai. Land prices are usually expressed in Thai baht per Rai or for smaller plots Thai baht per Wah. The sale and purchase agreement will (when it is upgraded between the sale and transfer) include something like 'the size of the land appearing on the Chanote shall be final and the purchase price shall be adjusted pro-rata with the area appearing on the Chanote'. You simply pay for more land than you get. Irregularities in the issuing of land-right documents showed there were land-right documents for about 200,000 rai where the Samui island only has 150,000 rai (July 19 2006).
• If a squatter is in possession of land for an uninterrupted period of 10 years in case of a Chanote (section 1382) ('and have peacefully and openly possessed the property belonging to another, with the intention to be its owner he acquires ownership of it'), they can apply to the Land Office for a deed of ownership. So, if you hold land under Chanote but a squatter takes possession and you do nothing to remove that squatter from the land for 10 years, then you could lose that land to the squatter. As this is only one year in case of possession (section 1374 Civil and Commercial Code) it is not uncommon for someone else to claim possession over (part of) such land.

Nor Sor Ha (5)

The N.S. 5 is a document that verifies the right of the holder in the N.S. 5 land. If the holder has a N.S. 5 land document along with a utilization certificate it indicates that the district officer has confirmed the utilization on the land, so this NS. 5 land with the utilization certificate can be sold or transferred by registration at the land office. Without the supporting evidence in the form of a utilization certificate it indicates that the district officer has not yet confirmed the utilization of such and in this case may not be sold or transferred except by inheritance.

Land documents issued by other government departments

Sor. Por. Gor. 4-01 (S.P.G. 4-01) | Sor. Tor. Gor. (S.T.G.) | Por. Bor. Tor. 5 (P.B.T. 5) | Nor. Kor. 3 (N.K. 3) | Gor. Sor. Nor. 5 (G.S.N. 5)

Under Thai law the Land Department is the only competent authority to deal with land and registering and transferring private rights over land. Transfer of ownership of land claims (or rent/ lease) over titles issued by other government departments than the Land Department can NOT be registered with the Land Department or is restricted for transfer. The following documents are the main land documents in Thailand issued by other government departments than the Land Department:

Large areas of Thailand do not have any title documents and are government land or public land, not open for private use. Large areas are restricted for private use or are essential land claims which are not a confirmed right of use or possession. This could also be claims of use which have filed with other government departments than the Land Department.

UPGRADING It is in certain circumstances possible (based on the determination of the land by the government, the type and length of the claim and the use of the land) to upgrade untitled land, like the Tor.Bor.Ha (T.B.5), to a FULL title deed, Nor Sor 3 or Chanote. Approval is often very unlikely and easy money is made by the Thais who have been selling this type of land claims among others in Koh Pha-Ngan and Samui, to foreigners. There is generally only money to be lost with these deals as the land will not be upgrade. The possible upgrade is often only in theory. With ignorance of foreigners and the suggested huge profits many have lost their money in these scams or are still waiting for an upgrade which will likely never happen. Update: Sor Kor Nung (1) land can't be upgraded any more with the Land Department but only through a court procedure.

Sor Por Gor. 4-01 (S.P.G. 4-01) is an allotment of land from the land reformative committee. Under no circumstance may this land be bought or sold. It confers the right to occupy only and be transferred only by inheritance. It seems that the land may be used for agriculture only (update: in the news)

Sor Tor Gor (S.T.G.), is an land certificate issued only in the zone of national reserved forest. The holder of this document has the right to reside and live on the S.T.G. land. This land is prohibited for sale, however, the right of the holder to reside and live on the land can be passed on heir by inheritance. This document issued by the Thailand Forest Department.

Por Bor Tor 5 (Ha) (P.B.T. 5), is an evidence showing that the occupier of a plot of land has been issued a tax number and has paid tax for using and the benefit of the land. This evidence gives no official rights at all, but was formerly used to establish that the holder was occupying a plot of land and could apply for a Sor Kor 1 and later for a land title deed.

Bangkok Post, September 12 2005; 'Land authorities will not issue title deeds to holders of Tor Bor Ha / Sor Por Gor or Bor Por Tor land right documents on Samui island. Charoen Chanparn, of Surat Thani land office, said the office has told local leaders in all tambons on the island to survey the land plots and see which kind of land documents have been issued in their villages. ONLY holders of Sor Khor 1 and Nor Sor 3 land ownership documents would have their papers upgraded to title deeds. Suthee Thiankallaya, Land Department inspector-general, said that although the state allows land owners to convert their land into capital, no title deeds for encroached land would be issued on Samui island'

Nor Kor 3 (Saam) (N.K. 3), is a utilization certificate issued under the Act of Land Allocation for Living B.E. 2511. This document issued only for members of a self-help settlement.

Gor Sor Nor 5 (Ha) (G.S.N. 5), is a utilization certificate issued under the Act of Land Allocation for Living B.E. 2511. This document issued only for member of cooperative settlement.

Land measurments Rai, Ngan, Wah

1 Rai 4 Ngan (or 1600 Sq.m.)
1 Ngan 100 Wah (or 400 Sq.m.)
1 Wah 4 Sq.m.
1 Acre 2.5 Rai (approx.)
1 Hectare 6.25 Rai (approx.)

Metric measures are usually used in the construction and measurement of buildings.

Related:

• Thailand Land Code Act
• Sample land title deed
• Condominium title deed
• Overview real estate laws
• Building or buying on land

Thailand restricts and prohibits certain economic sectors and business activities for foreigners, primarily through the Foreign Business Act (FBA) of 1999. Under the FBA, foreign nationals are prohibited from engaging in most business categories in Thailand unless they obtain an Alien Business Operation Permit from the Director-General of the Department of Business Development, with approval from the Foreign Business Committee.

Thai inheritance laws

If you have NOT made a Last Will or Testament, or valid will, the law (intestacy rules) will determine what happens to your assets when you die. Under Thai inheritance laws this generally means that the assets will be distributed amongst the statutory heirs. Under section 1629 of the Civil and Commercial Code of Thailand there are 6 classes of statutory heirs and they are entitled to inherit in the following order:

1. descendants
2. parents
3. brothers and sisters of full blood
4. brothers and sisters of half blood
5. grandparents
6. uncles and aunts
7. The surviving spouse is a statutory heir, subject to the special provisions of Section 1635 Civil and Commercial Code.

Distribution in the absence of a will

Thai inheritance laws designate intestate heirs and so long as there is an heir surviving in one of the classes, the heir of the lower class has no entitlement to share in the assets. The one exception is where there is a descendant and a parent in which case they take an equal share (section 1630). If there is more than one heir in any one class, they take an equal share of the entitlement available to that class. The surviving spouse is a statutory heir but their entitlement depends on what other class of statutory heir exists. If there are surviving children of the deceased, the spouse and children take the estate between them. Therefore, if there are three children, then the estate is divided in to four equal shares.

Legal foreign wills are acceptable in Thai Courts subject to being translated and authorized at the Ministry of Foreign Affairs, but the legal procedure to enforce it can take a long time. The execution of a foreign will in Thailand is always subject to a court procedure.

Making a will in Thailand

If you have NOT made a last will rules of intestacy will determine what happens to your assets when you die. The legal situation could be different if you live in Thailand and are married to a Thai national, or if you are unmarried and have no family relationships in Thailand. Either way it is recommended to make a last will and testament, but it is not required to make a Thai last will or testament. Making a valid Last Will in Thailand does not have to be difficult, a person must follow the requirements in the Civil and Commercial Code read more...

There is no minimum portion of the descendant's estate that must be assigned to the surviving spouse in Thailand, but before distribution half of the common property between husband and wife must first be given to the surviving spouse.

Trusts created by last will

Under Thai law trusts (the relationship where someone else holds the property (trustee) subject to certain duties to use and protect it for the benefit of others) created whether directly or indirectly by will or by any juristic act producing effect during lifetime or after death have no effect whatever (section 1686 Civil and Commercial Code). If the testator wants to dispose of his estate in favour of a minor or adjudged incompetent person or quasi-incompetent person he can entrust the custody and management thereof to a person other than the parents, guardian, custodian or curator, he can appoint a controller of the property by will.

Inheritance of foreign owned real estate in Thailand

Index

• Land ownership (successors by Thai inheritance laws or under will)
• Condominium (succession and foreign ownership)
• Company assets (inheritance of control and assets in a company)
• Leasehold (succession of lease rights when the lessee dies)

Foreign land ownership by succession

Section 93 of the Land Code Act: "A foreigner who acquires land by inheritance as statutory heir can have an ownership in such land upon a permission of the Minister of Interior. However, the total plots of land shall not be exceeding of those specified in Section 87".

Any foreigner who is married to a Thai national is under section 1629 Civil and Commercial Code a statutory heir (i.e heirs who are so entitled by Thai law) and it seems that he can apply for permission of ownership of inherited land from his Thai spouse pursuant to section 93 of the Land Code Act. But ownership will not be given to the foreign spouse. The over fifty year old Section 93 of the Land Code Act is written for inheritance of land by foreigners under a treaty (section 86 of the Land Code Act) and does not apply to foreigners acquiring land by inheritance from a Thai spouse. There is currently no treaty with any country allowing any foreigners to own land therefore no Minister of Interior will or can give permission to any foreigner to own land in Thailand. Note that it is only since 1999 that Thai nationals married to a foreigner are legally allowed to acquire land (read up).

The answer to the question 'can a foreigner inherit land in Thailand' is yes, as a statutory heir, but he cannot register ownership of the land because he will not be given permission. Under present law he must dispose of the land within a reasonable period (meaning up to 1 year) to a Thai national. If the foreigner fails to dispose of the land the Director-General of the Land Department is authorized to dispose of the land and retain a fee of 5% of the sale price before any deductions or taxes.

Note: inheritance of a house separate from the land relates always to having an interest in the land (superficies, lease, usufruct).

Condominium ownership transfer and inheritance

A foreigner who acquires a condominium unit by inheritance, either as statutory heir or inheritor under will, shall acquire ownership, however, unless the foreigner qualifies for ownership under Section 19 Condominium Act'1 - Foreigners permitted to have residence in the Kingdom under the Immigration law; 2 - Foreigners permitted to enter into the Kingdom under the Investment Promotion Law; 3 - Juristic persons as provided in Section 97 and 98 of the Land Code and registered as juristic persons under Thai law; 4 - Juristic persons which are aliens under the Announcement of the National Executive Council No.281 dated November 24 B.E. 2515 (current section 4 Foreign Business Act), and have obtained promotion certificate under Investment Promotion Law; 5 - Foreigners or juristic persons regarded by law as foreign who have brought in foreign currency into the Kingdom or withdraw money from Thai baht account of the person who have residence outside the Kingdom or withdraw money from a foreign currency account.', it is required by law that the foreigner shall dispose of the unit within 1 year from the date of acquisition. The Condominium Act divides foreign heirs in eligible foreigners (19 section 19/ 5) and ineligible foreigners (section 19/ 7).

Section 19 Septem (7) Condominium Act: "A foreigner or a juristic person which the law treats as foreign, except one prescribed under section 19, which has acquired a condominium unit through inheritance as legitimate heir or legatee of a will or through any other means, as the case may be, shall give written notice to the competent official within sixty days from the date of ownership of the condominium unit and shall dispose of that unit within a period of not more than one year from the date of acquiring possession of the unit. If it is not disposed of within such period of time, the provisions of the fourth paragraph of Section 19 quinque shall apply mutatis mutandis".

If the foreigner does not qualify for ownership under the Condominium Act (the vast majority) he must dispose of the unit within 1 year. If the foreigner fails to do so, the Director-General of Land Department shall have the power to sell the condominium unit on the foreigner's behalf (condo inheritance section 19 of the Condominium Act)

Read more: Acquisition of a condominium by inheritance, inheritance leasehold apartment

Partly foreign owned Thai real estate holding company

More complicated, should a foreign director in a Thai limited die the shares (and thus the assets) and control in the company will not automatically transfer to the heirs. Officially, in a normal company, a general meeting of shareholders must be called and a shareholder decision is needed to appoint a new director. The shares (and the most important position of managing director of the company) of the deceased must be transferred at the Ministry of Commerce, however, without the managing authorized director able to sign on behalf of the company this is less simple. It may be recommended to have more than one director in the company and/ or someone authorized to sign on behalf of the company.

Civil and Commercial Code:

Section 1155: "Any vacancy occurring in the board of directors otherwise than by rotation may be filled up by the directors, but any person appointed so appointed shall retain his office during such time only as the vacating director was entitled to retain the same".
Section 1132 : "In the event of death or bankruptcy of any shareholder another person becomes entitled to a share, the company shall, on surrender of the share certificate when possible, and on proper evidence produced, register such other person as a shareholder".

NOTE Many foreigners, especially prior to 2006, have set up Thai companies to receive ownership of land in Thailand on their behalf. In this case the foreigner is considered legally the principal and actual owner of the shares and assets (chapter 'Agency' in the Civil and Commercial Code). The company and Thai nominee shareholders are considered his agent holding the land (shares) on his behalf. This is what is illegal is this structure, but as the company (different from a normal company) is holding the assets on the foreigner's behalf the company must hand over the assets (real estate) to the heirs of the principal (the deceased foreigner). The nominee shareholders cannot claim ownership over the company's assets and the foreign heirs cannot register ownership but can demand, as the successors of the principal, the transfer of shares and control in the company. If not, the foreign heirs as the actual owners by succession have the right to claim the company assets by legal action, but will have to sell the real estate involving land pursuant the Land Code Act within 1 year from the date of acquisition by inheritance.

Lease termination due to death

A lease agreement is terminated on death of the lessee as a lease agreement in Thailand is in essence a tenancy contract and as such a personal contract right of the lessee (as confirmed by the Supreme Court) and not an asset or property of the lessee. If the lessee dies the remaining lease term and lease agreement will not automatically transfer to the heirs of the lessee. If succession is not included in the lease the land/ property owner may prohibit the lessee's heirs from taking possession of the property as the lease is terminated and the lessee's heirs have no rights to the property. The lease agreement must have an inheritance clause in the agreement granting succession to the lessee's heirs.

There is controversy on the legal status of a succession clause in the lease, meaning if it is a mere contract promise of the owner party to the lease or a real lease right that will automatically be binding upon third parties should ownership of the leased property transfer (e.g. at death of the owner). Under present interpretation of hire of property laws in Thailand this clause will not transfer with ownership under section 569 Civil Commercial Code as it is considered a contract right. If an inheritance clause has been included the heirs of the lessee have the right to claim performance directly from the original lessor (section 374 Civil and Commercial Code), but may not be able to successfully enforce this clause by legal action against a successor of the property. It may be recommended to include co-lessees in the lease agreement who each can independently continue the lease in the event of death of one of the lessees - read more...

See also

Do not pay more transfer fees, stamp duty and taxes than necessary

Transfer fees and taxes of immovable property

LAND OFFICE transfer tax of immovable property (land, house, condominium)

• Transfer Fee 2% over the appraised value of the property
• Business Tax 3.3% over the registered (sale) value or appraised value (whichever is higher)
• Stamp Duty 0.5% over the registered value
• Withholding tax;
  • if the seller is a company withholding tax is fixed at 1% over the registered sale value or appraised value (whichever is higher)
  • if the seller is a private person withholding tax is calculated at a progressive rate based on the appraised value of the property 

Note on stamp duty and specific business tax (SBT):

• Stamp duty is exempt if Specific Business Tax is charged.
• Business tax consist out of 3% business tax + a municipal tax of 10% assessed on the amount of the specific business tax (total tax 3.3%).
• If the seller is an individual (not a company) Specific Business Tax does not have to be paid if:
  • The seller has possessed the property more than five years before the transfer (the transferred real property has been used as the principal place of residence, and the seller’s name appeared in the house register for not less than one year from the date of acquiring such property).
  • The seller transfers the real property to the legal heir or an heir by a will.
  • The seller transfers the real property to a legitimate child, but not including an adopted child.
  • The seller transfers the real property without consideration to government agencies.
  • The seller transfers the real property without consideration to temples, churches or mosques.

Note; Land office transfer fees and taxes are collected when the real property transfer is registered and the Land Office will issue a receipt (sample) for these payments. The appraised value or government assessed value (land valuation) is set by the Land Department and Treasury Department and adjusted every 4 years with the last valuation in 2011 for the period 01-01-2012 to 01-01-2016. The appraised government values on which fees and taxes are based will be higher from January 2012 - read more...

Income Tax calculator: Thailand Revenue Department's website tax calculator (Thai language)

Lease registration fee

A real estate lease registration fee is charged at the rate of 1 % of the total rental throughout the whole lease term and collected by the land office at the time of registration. Also a stamp duty is collected at a rate of 0.1% of the total rental throughout the lease term.

Which party usually pays which fees and taxes when transferring real estate

Unless you are buying from a developer in a licensed housing or condominium development there is no fixed rule for who pays which part of the land office transfer fees and taxes. It is part of the overall price negotiation to come up with an appropriate formula for sharing these costs and it can vary from purchaser pays all to seller pays all. It's most important that you have resolved this in the sale and purchase agreement so the seller doesn't try to force in this provision a week before the transfer or you must work out such details when you arrive at the land office. It should exclude the seller's personal withholding tax, because of the wording in the contract it has happened that the buyer was forced to pay the seller's personal income withholding tax, as this is part of the official conveyancing costs to be paid at the land office when transferring property.

In a private sale of real estate property (land, house, land and house, condo apartment unit) the following division of taxes and fees is recommended:

Fees when buying a newly built condominium directly from a builder

When purchasing an off-plan condo or house in an official licensed housing or condo development the developer may only pass up to half of the transfer fee (2%) to the purchaser. Under consumer protection laws the developer is responsible in full for specific business tax and income withholding tax and at least half of the 2% transfer fees charged by the land office for ownership registration. 

The registration of a land, house, condominium transfer or lease registration in the land office may take up to six hours, depending on how busy the officers or if 'extra money' has been paid to ensure the smooth and quick registration. Usually, for registration of property transfer, extra money or tea money varies between 1,000 and 3,000 baht.

If the foreign purchaser cannot attend the land office, a proxy can be appointed. In this case, the official Thai script land office power of attorney form is required. Other forms of power of attorneys are NOT accepted by the Land Office.

The seller wants the declared price to be less than what I'm going to pay

The appraised (government assessed) land office value of a property is often pretty much lower than the actual sale price or market value of a property. The appraised property valuations are set by the Treasury Department and the Land Department and adjusted every 4 years. In practice when selling a property the Thai seller tends to insist on declaring and registering a sale price close to the appraised value as this decreases his personal income and transfer taxes. Undervaluing the sale price is a known practice in Thailand but not so common and is an illegal practice. The parties are required by law to state the correct true sale price at the Land Department.

In case the purchaser is a company, for accounting purposes the company accounts should reflect the purchase price as reflected in the actual sale and purchase contract (separate from the land office sale agreement). These are the accounts that will eventually be audited and on which and the company tax return will be based. In case a lower price is declared there is a risk that this valuation discrepancy will be caught in the future. This is for Revenue Department comparing the official land office documents with the company accounts. In this case the situation would have to be corrected and a substantial fine to be paid.

Share transfer if the owner is a company

If the owner/ seller is a Thai incorporated holding company selling to another foreigner a share transfer agreement could be drawn up. The property (land, house or condo unit) sale will look like a share transfer, without the necessity of re-registering the property at the Land Office and fees and taxes. It could be deemed a tax evasion to create such legal arrangements. Selling a property naked you will be liable for all of the taxes and fees that were applicable at the time of purchase over the sale amount. The proceeds derived from the sale of property by a company are taxed as corporate income tax.

Read more

• Land and Housing tax in Thailand
• Condominium transfer tax and fees (transfer fee, withholding tax, stamp duty and specific taxes)
• Property law in Thailand (ownership, lease, condominium, real rights)

BUILDING LEGAL OWNERSHIP OF A HOLIDAY HOME IN THAILAND

House construction laws in Thailand

Construction in Thailand is mainly regulated by the Building Control Act and the Town and City Planning Act. The Building Control Act provides for governmental control of virtually all types of construction by means of various applications and punishment in case of violation, the Town and City Planning Act deals with the permissible uses of land in different zones. In addition there are under both Acts Ministerial Regulations specifying regulations and zone restrictions. Building and construction can also be restricted by environmental and other laws (Nature Reserve Act, Forest Act, etc.) or if the land is burdened with a right of servitude. The relation between a customer/ employer and a builder in Thailand is primarily governed by a construction contract and the Civil and Commercial Code (specifically the chapter 'hire of work').

In addition to the zone regulations (12) for Samui specifying the type of use to which land/ property may be put in specific areas issued under the City Planning Act there are general building zone regulations (4) issued under the Building Control Act, giving standard building requirements and restrictions depending on its distance from the beach. These restrictions relate to the maximum size, distance to the land border, design and the height of the building (sample). Similar building regulations exist in Phuket, Pattaya, Koh Phangan, Hua Hin, etc..

Building or buying a home in Thailand

Foreign land ownership restrictions in Thailand relates to land only, not to the building on the land or condominium registered under the Condominium Act. The land and any structure on the land can be owned independently by different persons. Foreigners buying a home in Thailand can lease land (and optional obtain a right of superficies) and own the house as a personal property. In any land leasehold structure it is recommended to obtain ownership over the house, but ownership over the land remains the higher absolute right and the right to own the house on the land is relative to the right to use the land. The right to own the house on another man's land always follows the term of the land lease or superficies agreement and cannot exceed a term of 30 years after which the lease and/or superficies must be renewed.

How to own a house distinct from the land it is on

Buildings (apart from condo apartments) do not have a separate ownership title deed document. The procedure to obtain ownership of a structure separate from the land is as follows:

1. If buying from a developer (depending on the sale and tax structure and liabilities the developer chooses) the sale of a house separate from the land lease is either by:
   • a building sale and purchase agreement (see procedure under 3), or
   • a building construction contract with a building permit in the foreign purchaser's name.
2. In case an individual person is developing a plot of (leased) land the building permit should be issued, or during the construction changed by the Or Bor Tor, in the name of the person that leases the land.
3. Sale of a completed or existing building separate from the land requires the current owner and purchaser of the house to:
   • sign a standard land office Thai script sale of a structure document (signed at the land office in front of the competent land official)
   • followed by a 30 day public announcement/ posting of the house sale at specific locations
   • after the announcement period the parties return to the land office to complete the transfer.

Sale of completed existing house

The sale of an existing house separate from the land (land lease combined with house sale/ ownership) must be registered with the local land office (the Samui, Phuket, Hua-Hin, Bangkok or any other local Land Department's branch office) to be complete and property ownership transfer fees and taxes must be paid. Local property developers (in Samui) tend to offer a sale and purchase agreement for the house but skip the official transfer procedure (ownership has not transferred), or lease land and house (not recommended). The transfer of ownership of a building will take at least 30 days from the first visit to the land office to the issuance of the sale of a structure document (sample right or view sale document with short translation). The official land office sale document, stamped and signed by the local land office, is the document that proofs the purchaser's rights to the house and completes the transfer. Required documents:

• ID-card, passport (seller/ buyer)
• House registration book (Tabien Baan)
• Land title document
• House building permit
• Property transfer fees

Building permit

The seller of a house must have a building permit (sample top right) issued by the local Or Bor Tor. The building permit is the evidence that shows he owns the building and obtained approval to build the house. The building permit must be submitted to the Land Registry for the transfer of the house. It should be checked if the house is actually built according to the building permit. If the seller can't show a building permit the house could be illegally built or may not be built according to local building regulations. The building Control Act imposes heavy fines and even imprisonment on violators. If any violation is found the authority has the power to issue a stop-work order and demand rectification of the building or an incorrect part within a reasonable time. If the building or an incorrect part cannot be rectified, the authority has the power to order a demolition thereof.

When a land leaseholder hires a builder the building permit could be issued in the builder's name or land owner's name. In this case the name on the building permit should be changed by the local Or Bor Tor to the lessee's name at any time during the construction, but prior to the issuance of the house registration book (tabien baan). The building permit is proof that you own the building and the building does not belong to the land owner but to the land leaseholder. Separate ownership of the house increases the lessee's right and also lowers property tax liabilities (housing and land tax).

Research by the Agency for Real Estate Affairs indicates the new city plan for Koh Samui will mandate that property projects cannot be constructed higher than 150 meters above sea level read more.... Similar to Phuket where the Ministry of Natural Resource and Environment issued a notification to protect the environment in Phuket prohibiting any building and renovation in the area 80 meters and more above the average sea level. Construction is not allowed even though the land could have a full land title deed.

General considerations when planning to build or buy a house in Thailand

(also for leasehold land for foreigners)

• what is the land title (this should at least be a Nor.Sor.3.Gor/ Khor or better a Chanote land title deed);
• is the land tile deed correctly issued and the title cannot be revoked on the grounds of any illegal issuance process (read warning under 'articles news');
• is there a solid legal structure for a long term interest in the land (proper land lease and/or superficies registered with the Land Department);
• what are the zoning and building regulations and restrictions for the specific area (what use and construction is allowed in the area);
• is there a private servitude, public or municipality road connecting the land with the public road;
• are there any mortgages, encumbrances, claims or security of any kind registered against the land title deed;
• are there any conditions in the previous sale or gift (right of redemption);
• the land is not subject to any promise or agreement, court order or other judgment or decree;
• the land owner is not involved in any action brought before court or bankruptcy/ insolvency proceedings;
• the land is not encroached nor is there encroachment on the land;
• the land is not subject to any land expropriation plan by the government;
• the land is not located in a land reform zone according to the laws on land reformation for agricultural purposes; 
• the land is not located in a forest or nature reserve zone, or other area reserved for the public;
• the seller has not (implicitly or explicitly) declared the intention or done any act to give the land whether in whole or in part to the public;
• the seller does not hold the land as an agent on behalf of any third party, nor is there any third party having priority right to the land.

Samui building zones under the Building Control Act:

1. Area 1: No building is allowed up to 10 meters from the beach. The coastline or beach line is a moving line and often at the discretion of the Or Bor Tor who can choose more or less where it starts.
2. Area 2: Building of a single story house not exceeding a height of 6 meters with a total building area of up to 75 sq.m. is allowed up to 50 meters from the beach or coastline.
3. Area 3: Building of a building with a height of 12 meters and a ground floor or total building area of not more than 2000 sq.m.
4. Area 4: Any building of up to 12 meters can be built within an area of more than 200 meters from the beach.

The above zoning areas are issued under the Building Control Act specifying what you can build. Different zones under the City Planning Act can be found in the city planning act map controlling land and property use in specific areas. The main aim under the Town and City Planning Act for Samui is to set rules for sustainable development of Samui and protect Samui's environment, however it has always been relatively simple and common practice for developers to circumvent the land allocation rules, housing development license requirements and environmental control regulations. Investigations in Samui showed that a majority of the developers in Samui violated the Land Department's land allocation rules.

Section 4 (Land Allocation Act): 'Land Allocation refers to the sale of plot of land that has been divided into 10 plots upwards with property or other remuneration in return regardless whether it is divided from one or many adjacent plots. It also refers to the execution that the land has been divided less than 10 plots and thereafter, within 3 years, it has been divided in total into 10 plots onwards'.
Section 21 (Land Allocation Act): 'Land allocation shall be prohibited unless the approval by the committee. The procedure for application and issuance of license shall be in accordance with regulation, method and conditions specified in Ministerial Regulation'.

Articles news

- An initial probe into a land scandal in Phuket found ownership documents and title deeds for four plots in Kathu district had been unlawfully issued by corrupt officials read more...
- Forest land is classified as government property under the Ministry of Natural Resources and Environment and cannot be owned by any private entity. Due to uncontrolled development and corruption in the past Samui has many illegally issued land ownership titles in these areas that may be corrected or revoked and returned to the state. More complaints of land encroachment in different areas read more..
- Investigations showed that the majority of the developers in Samui advertising property in magazines and on websites were not licensed to do business and had violated the Land Department's land allocation regulations. As a result land titles are dodgy and the status of the land NOT protected by land allocation laws or general development regulations. Foreigners have been warned they risk losing all and may face legal problems later read more...
- Following a series of inspection trips around the Samui Khun Tingchai Rochanaknan form the Department of Natural Resources and Environment recently said that because of continued uncontrolled development, Samui in once again in great danger of flash floods and landslides this year read more...
- Samui property sales in problem, sales in Pattaya, Phuket also slow. Sales Pattaya, Phuket and Koh Samui drop. Samui market in dire straits read more...

See also