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Chanot (Nor Sor 4): This type of title deed is registered at the Land Department in the province in which the land is located. It grants the holder of the documents full rights over the land. It is therefore the strongest type of title deed. The title deed contains a legal description of the land boundary markers that are carefully ascertained and referenced by satellite images. This form of title deed needs to be registered at the provincial Land Departments. It hold the highest rights to a land. It includes legal assessment of the land boundaries that are certified by satellite imaging.
Nor Sor 3 Gor: This type certifies the ownership through proper boundaries however it holds less significant and ownership value compared to chanot. A final measurement is needed by the land department along with official markers. This type is still valid for sales, transfers or mortgages. If the owner of the land files a request with the responsible authorities it can be upgraded to chanot after a survey is conducted by the officials.
Nor Sor 3: Accordingly, the main risk is whether the boundaries and size of the land is accurate. This type hold legal ownership but the land is not properly measured by the Land Department and the boundaries are not known to them. So there are risk of inaccurate measurement and divisions by the local owners. Since the size of the land is not legally determined this type of land hold significant risks.
Sor Por Kor 4-01: This type of title deed applies to agricultural lands mostly in rural parts of the country. It is considered to be a government owned land that allows farmers in need to use a portion of it for agricultural purposes. This type of title deed is usually not applicable to foreign individuals.
Other types of legal rights with lesser value than title deed in Thailand:
Possessory Rights: it is a type of title deed that is quite uncommon and holds the weakest value of rights. It is usually transferred through inheritance right certified by tax payment with the local administrative officials.
Right of Habitance: The right of residence without rent payments.
Right of usufruct: Profiting rights or usage rights of the property owned by another person
Right of superficies: Permission to build on a land without ownership.
Land mortgages in Thailand must be made in writing and registered with the Land Department of Thailand. Mortgages do not include the buildings built on the land after the mortgage date unless they were agreed upon before the mortgage documents were signed. In addition, buildings and other immovable structures may be mortgaged separately and should be registered with the Land Department or local Amphur (province). The fee for registering a mortgage is 1% of the purchase amount declared in the mortgage agreement.Amphur (province). The fee for registering a mortgage is 1% of the amount declared in the mortgage agreement.
The transferring fee, withholding tax and the stamp duty or Specific Business Tax (SBT) must all be paid by either the buyer or seller when a property is purchased. Although every Sale and Purchase agreement differs, the buyer is usually responsible for the transfer fee, while the seller pays the stamp duty or specific business tax and the withholding tax.
Transferring Fee: 2% of the registered value of the property; this is paid at the Land Office on the day of the transfer of ownership
Stamp duty: .5% of the appraised value of the property or the purchasing price, whichever is the higher
Specific Business Tax (SBT): 3.3% of the appraised or actual price of the property, whichever is higher; This is only Imposed if the property is transferred less than five years after its purchase (If the SBT is levied, stamp duty will not have to be paid.)
If you intend to hire a local law firm, be sure that firm does not have a pre-existing working relationship with the seller and/or Land Department officials. Such law firms may be biased in their assessment. In most Western countries, it would be deemed a serious conflict of interest and breach of ethics for the same company to act as a real estate broker and a lawyer for the same client. However, in Thailand, certain companies marketing to non-Thais do exactly that. Bangkok- based law firms can be retained to travel to the provinces to execute the land deal. You may feel more confident that the Bangkok-based law firm will operate independently and 100% in your interests.