Money & law on Hua Hin Today

Understanding Land Titles

Comprehensive titling cannot exist without complete land surveys and unlike many western countries the process of national land surveys is still an ongoing process in Thailand. Up until a few decades ago it was possible to simply stake a claim over a piece of jungle, register that claim and farm or otherwise develop that land (some of these claims still exist and can in some cases be converted to title deeds) but thereafter the government stopped this free-for-all and in essence claimed that all remaining untitled hillside and forested lands were Forestry Department Lands (or National Park). These new lands were never surveyed in any detail, so inevitably encroachment and ownership disputes have continued.

In recent efforts (taking place in various provinces nationwide over the last half dozen years) to define once and for all the boundaries of the disputed forest lands and prevent further encroachments, a new policy of granting (accurately surveyed) utilization right to landless people making these encroachments has been in operation. Well-publicized allegations, and legal proceedings (now controversially dropped), of abuses of this claim procedure for issuing the so-called Sor. Por. Kor. land titles by the rich and wealthy in Phuket, was the source of down fall of the last Chuan government and have still to be finally resolved in the intervening three years.

True title deeds (Chanote ti din) are indeed only to be found in the most and longest developed parts of the Thailand and account in total for only a very small proportion of all the land in the country.

Chanote titles, issued by the Provincial office of the Thai Land Department, 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, but with currently available funds, manpower and resources this process will take several decades to complete.

Most "titles" in rural Thailand are however of the Nor. Sor. Sam or Nor Sor. Sam Kor. (N.S.3.) variety and are in the strictest interpretation "land exploration testimonial deeds". They are to all practical purposes land title deeds (issued and maintained by the Ampur , the District land office) in as much as clear records of ownership are maintained, and that they may be sold, leased, used as mortgage collateral etc. In the case of the Nor. Sor. Sam. (but not the more recently issued Nor. Sor. Sam. Kor.) There is however a requirement that 30 days public notice is necessary before any change of status over the land can be registered.

N.S.3. titles are in general less accurately surveyed than Chanote titles. In the case of the older (now increasingly rare N.S.3.) titles the boundaries are only recorded in relation to the neighboring plots and survey errors in length of boundary or area of as much as 20% are not unusual.

The newer Nor. Sor. Sam. Kor. is in general much more accurately surveyed and each plot is crossed referenced to a master survey of the area and a corresponding aerial photograph. For this reason whenever purchasing N.S.3. land which lacks clearly defined physical boundaries it is a wise precaution to ask the owner to stake out the boundaries and then ask neighboring land owners to confirm the vendors interpretation of the boundary - don't rely solely on the drawing on the deed.

The Chanote 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. Summaries of some of the lesser land title/claims are covered in.

Below the Chanote and N.S.3. title outlined, there are a host of other forms of land claim document such as the Sor. Kor. Nung (S.K.1), the Tor. Bor. Tor. Hoc. (T.B.T.6) and the Tor. Bor. Tor. Ha. (T.B.T.5.). These rights are essentially a form of squatter or settler�s claim, which has been filed with the district office and upon which a small fee has been paid. Unlike the Chanote and N.S.3. it is neither possible to register a sale or lease over these land rights, nor will a bank accept them for collateral and most importantly you cannot apply for (or obtain approval to) build on such land.

In certain circumstances, based on the length of the claim and the use to which the land has been put, it is possible to upgrade these land claims (to N.S.3. or Chanote title). The steps involved in such an application and the number of government departments required to approve such an application (where such approval is often discretionary) is however quite daunting and most definitely not recommended to anyone without the best of connections at the district, provincial and (in many cases) national level.

The more recently issued Sor. Por Kor. titles about which there was such a political scandal in 1997 are very different to the above claims. These are true title deeds, accurately surveyed and pegged (like a Chanote). They may be mortgaged; planning permission for development may be sought and granted. The one significant thing that may not happen with a Sor. Por Kor is that it may not be sold or transferred (except under last will and testament). Many of those who claimed and received (and in a few notable cases - had them rescinded) these titles, expect that this limitation will change in time or that the titles can be quickly upgraded to a full Chanote. This is not a universal interpretation of the intention of the new titles and with the Democrat government anxious not to burn its fingers the same way a second time, it is unlikely that any upgrading will granted in the near future.

A condominium title (first established under the condominium act of 1979) is a title to a part of a building or buildings with multiple owners, and a fractional interest in the land (always a Chanote) and other common assets (such as a swimming pool) and common parts of the building (such as the stair well or lobby). The title will state the floor area of the private apartment, the ground area of the common land and the percentage interest which that apartment has in the common property. This percentage also represents the value of the voting interest in the condominium company or owners association.

Subsequent to an amendment to the condominium act five years ago, aliens (that is non-Thais) may also own (subject to certain important qualifications) up to 40%, by floor area, of the units in a registered condominium.

Legal Update

The Condominium Act has recently been amended and it is now possible for 49% of the units in all condominiums and for 100% of the units in condominiums with a total development area of under 5 rai located in Bangkok, all municipal districts and such other areas as shall hereafter be announced by the Minister of the Interior (which is expected to include rural Phuket) to be foreign owned, provided always (this is unchanged) that the funds for the purchase have been remitted from aboard.

The qualification most likely to enable an alien to purchase a freehold condominium is providing evidence that the funds used for the purchase of the unit have come from abroad. Before making any large transfer relating to a condo purchase be sure to check with the vendor, your lawyer or a local bank the correct procedure for remitting funds or you may not qualify for foreign freehold.

Buildings other than condominiums do not have any form of title document, but their sale or long lease can be registered at the Ampur (district) land office. Proof of ownership, must be established either from proof of construction or document showing previous sale-purchase (do not confuse this with the House License document, which is only a register of the house�s occupants).

Transfer of a building as distinct from its land requires the posting of 30 days public notice (to see if anyone wishes to contest the ownership). Foreign nationals (aliens) may own a building (as distinct from its land) and may register such transfer of ownership into their names at the local district office.