A Title Search is important when you plan on purchasing property. A Title Search is a review of the property records. It helps determine the rightful owner of the property and whether the property has any liens on it.
In Thailand, the title deed search ensures that the percentage of foreign ownership is not more than the allowable 49% if a condo. It is important to check the details of the land with the Land Office to verify that the land for the project actually belongs to the developer as well as any mortgage on the land.
In addition to the Title Search, a search of the corporate and financial information the property developer should be done. The corporate documents, balance sheets and shareholder records should be completed. If the property development has a loan with a bank, the loan agreement should be reviewed to see who bears the burden if the developer defaults on the loan.
The developer should also have the necessary construction and environmental permits. Without the proper permits, the development might have to be stopped and taken down.
Land Titles in Thailand
Nor Sor Si Jor: (Chanote Title or Title Deed Certificate) A true title deed that has been accurately surveyed and marked by land office posts. This land can be sold or transferred unless the previous owner places restrictions on the transfer of the property.
Nor Sor Sam: These are land title deeds issued by the District Land Office. It shows a person’s right to possess a certain plot of land but the land borders must be confirmed by neighboring plots. There are no land office post to mark the boundaries of the land. The land may be sold with 30 days public notice.
Nor Sor Sam Kor: These are similar to Nor Sor Sam but the area has been surveyed by an aerial photograph. The property can be sold or subdivided into smaller plots. There is no restriction for the use of the land and no need to provide public notice prior to sale.
Sor Kor Nung: These are only a notification of land possession but has little rights rights associated with it. This is generally provided to farmers for the right to occupy and use the land to farm. The right may be sold or transferred by inheritance. Long-term dwellers may have the right to apply to the government for a higher form of title deed.
Tor Bor Tor Hok and Tor Bor Tor Ha: These are squatter’s claims to occupy land that has been settled. It is generally issued if the occupier has been issued a tax number and has paid tax for the benefit of the land. It confers no rights at all but merely a piece of evidence proving actual possession. It is not possible to legally build on the land, sell or lease it.
To ensure that the title document is in order, it is better to hire a property lawyer in Thailand.