June 18, 2009

Phuket Property , All abouth Land Titles in Thailand. Phuket Real Estate guide...



Understanding Land Titles:
True title deeds, "Chanot ti din", are only to be found in the most and longest developed parts of the Thailand, and of course in Bangkok. Chanot titles, issued by the Provincial office of the Thai Land Department, are accurately surveyed, plotted in relation to a national survey grid and also marked by unique numbered marker posts set in the ground.
Most "titles" in rural Thailand are however of the Nor. Sor. Sam or Nor Sor. Sam Kor. (N.S.3.) variety and are in the strictest interpretation "land exploration testimonial deeds". They are to all practical purposes land title deeds (issued and maintained by the Amphoer, the District land office) in as much as clear records of ownership are maintained, and that they may be sold, leased, used as mortgage collateral etc.
In the case of the Nor. Sor. Sam. but not the more recently issued Nor. Sor. Sam. Kor. there is however a requirement that 30 days public notice is necessary before any change of status over the land can be registered.
N.S.3. titles are in general less accurately surveyed than Chanot titles. In the case of the older (now increasingly rare N.S.3.) titles the boundaries are only recorded in relation to the neighboring plots and survey errors in length of boundary or area are not unusual.
The newer Nor. Sor. Sam. Kor. is in general much more accurately surveyed and each plot is cross referenced to a master survey of the area and a corresponding aerial photograph. For this reason whenever purchasing N.S.3. land which lacks clearly defined physical boundaries it is a wise precaution to ask the owner to stake out the boundaries and then ask neighboring land owners to confirm the vendors interpretation of the boundary.
The Chanot and the Nor. Sor. Sam. Kor. are the only titles over which register able right of ownership or lease can exist, and are as such the only ones that a prudent foreigner should consider.
Below the Chanot and N.S.3. title there are a host of other forms of land claim document such as the Sor. Kor. Nueng (S.K.1)., the Tor. Bor. Tor. Hoc. (T.B.T.6) and the Tor. Bor. Tor. Ha.(T.B.T.5.)

. These rights are essentially a form of squatter or settler's claim which has been filed with the district office and upon which a small fee has been paid. Unlike the Chanot and N.S.3.. it is neither possible to register a sale or lease over these land rights, nor will a bank accept them for collateral and most importantly one cannot apply for (or obtain approval to) build on such land.
In certain circumstances, based on the length of the claim and the use to which the land has been put, it is possible to upgrade these land claims (to N.S.3. or Chanot title). The steps involved in such an application and the number of government departments required to approve such an application (where such approval is often discretionary) is however quite daunting and most definitely not recommended to anyone without the best of connections at the district, provincial and (in many cases) national level.
The newer Sor. Bor Kor. titles are very different to the above claims. These are true title deeds, accurately surveyed and pegged (like a Chanot). They may be mortgaged, planning permission for development may be sought and granted. The one significant thing that may not happen with a Sor. Bor Kor, is that it may not be sold or transferred (except under last will and testament). Many expect that this limitation will change in time or that the titles can be quickly upgraded to a full Chanot. This is not a universal interpretation of the intention of the new titles and it may be unlikely that any upgrading will granted in the near future.

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