Thailand's property market continues to attract both local and foreign investors, thanks to its tropical appeal, growing economy, and relatively low real estate prices. However, navigating the process of acquiring property in Thailand requires a solid understanding of title deeds and title transfer procedures. Not all land ownership rights in Thailand are equal, and understanding the types of title transfer is essential to avoid legal issues, unexpected costs, or even losing your investment.
This article explores the various types of title transfer in Thailand, highlighting the different types of land titles, how transfers are processed, and what foreign buyers need to know to ensure a secure transaction.
Before discussing title transfer types, it's crucial to understand the land title system in Thailand. Thai land is categorized under different types of title deeds, which vary in terms of ownership rights, transferability, and legal protection.
The main types of land titles in Thailand include:
This is the highest and most secure form of land title in Thailand. It indicates full ownership rights and is issued using GPS-based measurements. A Chanote title allows:
Buying, selling, or leasing
Subdivision and transfer
Mortgaging or developing the land
Because of its legal clarity and enforceability, this is the preferred title for most real estate transactions, particularly for residential or commercial purposes.
This type of land title indicates confirmed possession, not full ownership. The land has been measured and mapped, but not yet upgraded to a Chanote title. It is legally transferable and can be sold, leased, or used similarly to a Chanote. However, it is slightly less secure.
Title upgrades to Chanote are possible, but they require approval from the Land Department and certain development benchmarks.
This is a less secure title than Nor Sor 3 Gor. The boundaries are not accurately surveyed, and disputes may arise more easily. Transfer is possible, but the land must be posted with a public notice for 30 days before a transaction.
While legally recognized, Nor Sor 3 titles are riskier and not recommended for foreign buyers without thorough legal due diligence.
These titles reflect mere occupancy rights or informal claims to land. They are not legally registered with the Land Department and cannot be sold or transferred in a straightforward legal transaction.
Foreigners and investors should avoid land with these titles unless pursuing long-term development and are working toward formalizing the title.
Once you have identified land with a valid title (Chanote or Nor Sor 3 Gor), the transfer process at the Land Department becomes the next crucial step. The transfer process and associated requirements differ based on the type of transaction and the parties involved.
This is the most common and straightforward type of title transfer. It involves the full legal transfer of ownership rights from one party to another and is done at the local Land Office.
Key steps include:
Preparing the sale agreement
Performing due diligence
Paying taxes and transfer fees
Registering the transfer with the Land Office
In this case, the buyer becomes the legal owner and receives a new Chanote title with their name recorded on it.
Taxes & Fees (approximate):
Transfer fee: 2% of the assessed value
Specific business tax (if applicable): 3.3%
Stamp duty: 0.5%
Withholding tax: 1% (or higher for companies)
Foreigners who cannot own land in Thailand often enter into long-term leases. Thai law allows leases of up to 30 years, with possible extensions.
Leasehold title transfers are not ownership transfers but are registered with the Land Office. The lease is noted on the title deed, and the leaseholder has exclusive usage rights for the duration.
Lease registration incurs a fee of 1.1% of the total lease value.
This is commonly used for:
Villas or houses on Thai-owned land
Condominium units when not purchased under freehold
Some foreigners set up a Thai Limited Company to purchase freehold land, as Thai companies can legally own land. The land is registered under the company’s name, and control is maintained through shareholding and director authority.
In this case, the title transfer is made to the company, and the foreigner indirectly controls the asset. However, this structure must be legally compliant—fake or nominee shareholders can result in legal penalties or asset seizure.
This method requires:
Proper corporate structuring
Legal compliance with the Foreign Business Act
Annual reporting and taxation
If land or property is inherited, the title transfer involves special procedures. Foreigners can inherit land, but they cannot legally own it unless they are already permitted to own land under Thai law (e.g., through BOI approval).
For Thai nationals, inheritance transfers involve:
Submitting a will or court order
Paying inheritance tax (if applicable)
Registering the transfer at the Land Office
Inheritance by foreigners often leads to mandatory sale or lease-back options, as land ownership by foreigners is restricted.
Unlike land, foreigners can own condominiums freehold—up to 49% of the building’s saleable area. Title transfers of condo units are done at the Land Department and follow standard procedures.
Requirements include:
Proof of foreign currency remittance for purchase
Foreign Exchange Transaction Form (FETF)
Payment of transfer fees and taxes
Condominium title deeds (Tabien Baan for condos) list the unit number, size, floor, and share of common property.
Title transfers in Thailand can be complex, especially for foreigners unfamiliar with local laws and land categories. While land ownership is generally restricted for non-Thais, legal pathways like leaseholds, company ownership, and condominium purchases offer viable investment options.
To ensure a secure transaction:
Always conduct due diligence with a qualified lawyer.
Verify the type of land title.
Ensure taxes and transfer fees are clearly calculated.
Complete the transaction at the appropriate Land Office.
By understanding the types of title transfers and associated legal nuances, property buyers in Thailand can protect their investment and avoid costly pitfalls.