Land Ownership in Thailand: Title Deeds

Land Ownership in Thailand: Title Deeds

Foreigners do not often have easy access to land ownership in Thailand. Subject to qualified business operations and a stringent application procedure, foreign corporations may be eligible for possibilities to buy property, notably through BOI certificates. The several title documents used in Thailand are important for both land ownership and leasing agreements, thus it is still important to comprehend them.

THREE MAIN TYPES OF TITLE DEEDS IN THAILAND

According to the Land Department, there are many categories of land rights in Thailand, ranging from a person’s restricted right to farm a certain piece of land to complete ownership rights to a specific plot. Here, we’ll discuss the primary categories you’re most likely to run across.

N.S.2 – Temporary land rights reservations

The Land Department may occasionally publish possibilities for people to claim land parcels for usage. As long as you start developing the land within six months and finish within three years of receiving the rights, if you get this right, you might be eligible to upgrade to a more permanent title. If not, the rights may be revoked by the Land Department. Furthermore, save through inheritance, the holder of these rights is not permitted to mortgage them or to transfer them to anybody else. Additionally, the Land Department has the authority to cancel your rights if you do not use the land during the allotted term.

N.S.3 – Right to full land rights

The N.S.3. grants the possessor the right to complete land rights rather than full land rights themselves (i.e., one level below full land rights). There are three tiers below this one. N.S.3 is the first to acknowledge the application for full ownership. This certification, which was issued by the District Chief, is restricted in that it does not specify the limits of the area. This land may be sold, transferred, or mortgaged, but only after a land survey and after a 30-day contest process that has been publicly declared. The second, N.S.3a, indicates that aerial photography has been used to survey and outline the property. The third, N.S.3b, indicates that there exist property lines and no petition period is required in order to sell, transfer, or mortgage the land.

N.S.4 – Chanote, or full land ownership rights

This full title deed transfers complete ownership of a carefully surveyed and plotted out land parcel. The land can be used anyway the owner sees fit, including for sale, rental, or transfer. They can also keep out intruders.

YOU CAN STILL LOSE YOUR LAND RIGHTS WITH A TITLE DEED

According to Thai law, if you do not use the land, you run the danger of losing your claim to it. You are not permitted to leave the land fallow for longer than ten years for a chanote. For other deeds, it can take the Land Department one to five years to take back the property. This is done to promote development and preserve or raise the land value of that parcel and the lots around.

REMEMBER “CHANOTE”

Although you might not be able to own real estate in Thailand, you or your business may be involved in a lease, a superficies, a usufruct, or a deal where land is used as collateral. Only land with a chanote qualifies in all of these situations according to Thai law.

To safeguard your interests, you must conduct due diligence on any transaction involving land ownership in Thailand that you are going to enter into or are thinking about.

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