Basically, there
are two types of land tenure in Thailand, namely leasehold and freehold. Lease hold
titles are normally granted by the government, government agencies and
institutions. However, some private owners with freehold land also offer
leasehold titles to the private sector.
Government agencies
which lease land to the private sector include The Crown Property Bureau (CPB) and
the State Railway of Thailand. Examples are Chulalongkorn University and the Dusit Thani Hotel where land is
leased from the CPB.
For leasehold
tenure, the lease period is normally 30 years, with options to review for a
further 30 years, upon expiry of the initial lease period.
Leases for a term
of more than three years of the life of the lessor or lessee are enforceable
only for three years unless registered with the relevant Land Department Office.
The duration of lease may not in any event exceed 30 years. Each extension of a
lease may not exceed 30 years.
Forms of Land
Title
Ownership of land,
possession and use are governed by the land Code BE 2497 (1954), the Land
Reform for Agricultural Act BE 2518 (1975), the Civic and Commercial Code and
by regulations issued by the Ministry of the Interior.
Land may be
acquired by sales, hire-purchase, gift, inheritance or adverse possession. A
sale of land must be made by a written document and must be registered by the
Land Department Office to be effective.
There are broadly 4
types of Land Title in Thailand, they being Title Deeds (Chanote), Confirmed
Certificate of Use (Nor Sor Saam Kor), Certificate of Use (Ngor Sor Saam) and
Certificate of Possession (Sor Kor Nung) are common evidence of land ownership,
possessory rights and other interests in land. An explaination of each follows.
Chanote (Title
Deeds)
Freehold title with
the owner able to leave the land unattended. Title deeds are registered at the
Land Department in the province in which the land is located, and there is no
wating time required to transfer title. Chanote titles are accurately surveyed,
plotted in relation to a national survey grid and also marked by unique
numbered marker posts set in the ground. It is the long term goal of the Land
Department, that all land in Thailand will be covered under the Chanote title
system.
Nor Sor Saam Kor
(Confirmed Certificate of Use)
This certifies that
the person named on the certificate has the confirmed right to use the land,
implying all requirements for the issuance of title deed have been met, and
issuance of the title deed is pending. They may be sold, leased, used as
mortgage collateral etc. The holder of this certificate cannot leave the land
unattended for more than 12 years.
The Chanoted and
the Nor. Sor. Sam. Kor. Are the only titles over which registerable right of
ownership or lease can exist, and are as such the only ones that a prudent
foreigner should consider.
Nor Sor Sam (Certificate
of Use)
Similar to the
above Confirmed Certificate of Use except that not all of the formalities to
certify the right to use have been performed. Before a transfer can be made, a
notice of intent must be posted and then 30 days public notice is necessary
before any change of status over the land can be registered.
Sor Kor Nung (Certificate
of Possession)
This recognises
that a person is in possession of land but the Certificate does not imply that
there are any rights associated which the possession. It is not transferable,
but a person in possession may transfer physical possession and the new
possessor may apply for a new Certificate of Possession.
Por Bor Tor 5
Por Bor Tor 5 is
agricultural land or forestry land not recognized as having ownership by the
local land office.
The local village headsman will be classed as the sole
Administrator and he should know ownership by possessory rights title, and also
the boundaries of the land. When sold.
t is not possible to register a sale or lease over these land rights, nor will a bank accept them as collateral, and one cannot obtain approval to build on such land.
Ability to obtain title upgrades for such land is highly uncertain and in many situations is not feasible.
The steps involved in pursuing an application are daunting, the timing requirements are lengthy and approval is discretionary. These lands are not recommended to anyone without the best of connections and the ability to accept risk.