The land title deeds in Thailand
- Ownership Title Deed or Chanote is the ultimate certification of land ownership. Holders of the title deed have full rights to transfer or sell the properties and to bar other parties from violating their rights over the land protected by the ownership title deed law. These title deeds must be registered at the Land Department in the province in which the land is located. It should also be noted that a parcel of land may be commonly held by several individuals. A person whose name appears on a Chanote, or Land Title Deed, has all the legal rights to that land, can produce the deed as evidence of ownership to Government officials.
- Nor Sor 3 is a governmental letter certifying a utilization of certain land plot by certain people and that the plot of land has been surveyed and its official map created.
- Nor Sor 3 A is similar to the Nor Sor 3 certification. The only difference is the map survey of the land plot based on an aerial-viewed photograph of the land.
- Nor Sor 2 states the government's permission for person or legal entity to make use of land temporarily. Need to utilize at least three-quarters of the land plot within three years after the document issuance. This right is non transferable. At the finish, land occupants can seek the right to demand higher privileged title deed.
- Sor Kor 1 This document means that land occupants are occupying or making use of certain land plots, whose ownership has not been claimed by any entity. The document does not indicate legal possession of the informer so one cannot transfer the ownership of the property to any one else. The Sor Kor 1 is rare now as the government's land ownership legislation has covered most area of the country.
**Nor Sor documents are issued to show the possessors' exploitation of the land. Though these documents do not provide ownership rights, as do Title deeds, they can still be registered for transfer of the lands for which they are issued.
Ownership of land is governed by the Land Code BE 2497 (1954), the Civil and Commercial Code, Land Reform for Agriculture Act BE 2518 (1975) and the regulations set forth by the Ministry of the Interior. Under strict application of the existing law it is officially prohibited for foreigners, including both individuals and juristic entities (e.g., companies or partnerships), to own land in Thailand.
Leasing of land by foreigners in Thailand & Long term leasing with rights to renewal
Because of the barriers in place to the purchase of land by foreigners, the most effective way to acquire land that a building resides on is to purchase the land on a 30-year leasehold with an option to extend the lease for subsequent 30-year periods. Leases are limited to 30 years, except on land for industrial purposes, which may be established for 50 years. Similarly, lease extensions are capped at 30 and 50 years respectively. Possession of the land leased for an already owned building is protected by the fact that the building rests on the land; ownership of the building is separate from the land and cannot be seized by the lessor once the lease expires. Leases exceeding three years are enforceable for only 3 years unless they are registered with the Land Department. Therefore, a 30-year lease must be registered with the Land department. In addition, a lease continues to be valid even in the event the property on the land is sold.
Taxes and Costs of Purchasing a Property
On all purchase / sale of property in Thailand there is a stamp Duty 0.5% of valuation price, a transfer fee is 0.2% of valuation price .There is no Capital Gains Tax in Thailand, unlike many countries, and Income Tax (usually between 1.0 - 3.0%) on property is the comparable replacement.
If you intend buy property in Hua Hin you should contact Hua Hin Foreigner Link Center and the officials there will assist you with the purchase.