A Chanote (Nor Sor 4 Jor) is the strongest land title deed in Thailand, giving full, government-guaranteed ownership with precisely surveyed boundaries. It is the deed you want when buying property, because weaker title types (Sor Kor 1, Nor Sor 3) carry fewer rights and less certainty. Foreigners can hold a Chanote for a condominium freehold, but not for land directly.
Information about Thai Title Deed (Chanote) in Thailand
Ever since the establishment of Thailand’s Land Department in 1901, the government has issued land title deeds to private owners of real estate. The document guarantees and outlines ownership rights while providing information on the property such as dimensions, conditions, and ownership history.
Because there are several types – some with more rights than others – knowing which one you possess and what rights are associated with it is crucial. Learn all about the land title deed and how it can impact you in this article. It provides a step-by-step guide to the various title deed processes, helping you to maximize results with fewer resources.
What Are the Benefits of Owning a Title Deed?
The Chanote is the deed you receive when buying a condo in Bangkok or inheriting one under Thai inheritance law.
The 6 main benefits of owning a land title deed are as follows:
- Provides legal proof of real estate ownership.
- Needed for registering property at the Land Office.
- Serves as a form of identity verification, making various government and private procedures easier including house book registration (Tabien Baan) and applications for building permits.
- Serves as collateral in loan applications in some cases.
- Crucial for real estate investment in Thailand as it’s required when transferring or selling property.
- Clarifies land info and details, making disputes less easier to resolve.
What Types of Title Deed Are There in Thailand?
There are 7 types of title deeds currently or formerly issued by the Land Department in Thailand. In relative order of least to most influential rights, they are:
- Sor Kor 1 (Neung) – Generally these apply to land used for farming and have no real rights associated with them. You may be able to upgrade these to Nor Sor 3, Nor Sor 3 Gor, or Nor Sor 4 Jor for expanded rights depending on the land’s location.
- Nor Sor 5 (Ha) – A document that verifies rights to the land of the Sor Kor 1 holder. When held together, these two documents allow the holder to sell or transfer said property outside of inheritance.
- Nor Sor 2 (Song) – Letter granting temporary, but limited (cannot be sold or transferred except for inheritance), rights to the land for 3 years. The holder must begin using the land within 6 months of receiving permission and may be able to upgrade to a different deed depending on the location.
- Nor Sor 3 (Saam) – Gives the right to possess and use land, but not full ownership. The land’s dimensions won’t be as well recorded (no parcel points or concrete posts that outline land) which can lead to disputes. However, this title deed allows selling (subject to a 30 day public notice of intention to sell), leasing, and building on the land given government approval.
- Nor Sor 3 (Saam) Gor – An improved version of N.S.3. In this case, land is inspected and parcel points set via an aerial survey. You can then subdivide the land into smaller plots and can sell or build on the land without the 30-day public notice.
- Nor Sor 3 (Saam) Khor – The same rules apply as for Nor Sor 3 Gor, but parcel points are not.
- Nor Sor 4 (Si) Jor, or Chanote – This is the only document that provides full, true legal ownership rights to a property. Under the chanote title deed, the area is more accurately measured using satellite imaging as part of a larger national land survey.
What Is Sor Kor 1 and Nor Sor 2 and What’s the Difference Between Them?
Sor Kor 1 is a certificate granting land use rights, but no actual ownership rights on its own. Nor Sor 2 is a temporary land ownership certificate that lasts up to three years as long as you begin using the land within 6 months of registering the certificate.
Both certificates may be upgraded to higher level land title deeds such as the Nor Sor 3 and above. However, Sor Kor 1 certificates require court approval and additional documentation in the form of Nor Sor 5 verification. The main difference between these two is that Nor Sor 2 properties cannot be sold or transferred even after upgrading the status of the deed.
Possession and Rights Associated With Land Title Deeds (Nor Sor 3)
Holding a Nor Sor 3 (NS-3) title deed means that you have possession of a piece of land, but not full ownership rights. Because this title deed doesn’t include accurate land measurements, it’s considered a stepping stone toward applying for a proper land survey and full ownership (Nor Sor 4 Jor).
Those who possess a Nor Sor 3 document can sell or transfer the property, but they must make this intention public for 30 days before confirming the sale.
What Is the Difference Between Nor Sor 3 Gor and Khor?
The difference between Nor Sor 3 Gor (N.S.3.G) and Khor (N.S.3.K) is that parcel points are not measured and associated with the Khor version of the document. This is unfavorable as it can lead to disputes with neighboring plots when selling, partitioning, or building on the land.
Ownership of a Condominium Freehold Title Deed, or Nor Sor 4
Ownership of a condominium freehold title deed, or Nor Sor 4, means full ownership of the condominium in question. The condo title deed lists the details of the condominium complex as well as the dimensions of the specific unit owned. It also lists the ratio of joint-owned space which includes areas like hallways, stairs, gardens, and more.
Ownership of Land Title Deed, or Nor Sor 4 Jor
Ownership of land title deed, or Nor Sor 4 Jor (known as Chanote), grants full ownership rights to the holder. In this case, the land’s boundaries are precisely established using satellite imaging and physical marking posts in the ground with numbers that correspond to those in the deed.
If you’re listed as an owner on a Chanote, your rights to the land in question are indisputable according to Thai property and tax law. That means that you can build on, divide, or transfer ownership to the land as you please.
Are Foreigners Allowed To Own Land in Thailand?
Yes, foreigners are allowed to own land in Thailand under certain conditions. One way is to purchase land via a Thai-registered company.
Another option comes from section 96 of the Land Code Act which states that an investment in local Thai qualified assets of at least 40 million Thai Baht from abroad over a period of five years makes that individual foreigners eligible to purchase up to 1 rai (1,600 square meters or 400 square wah or 0.3953 acre or 17,222 square feet) of land, subject to the Board of Investment approval. One of the easiest ways to go this route is by investing in Thai government bonds.
The most common way for foreigners to legally own real estate in Thailand is via an individual Freehold condominium, limited to 49% of the total floor area of a condominium.
Rights Associated With Holding a Land Title Deed (Nor Sor 5)
Nor Sor 5 is a separate document that verifies the rights of the holder of a Sor Kor 1 certificate. When both Nor Sor 5 and Sor Kor 1 are held by the same person, they have the right to sell or transfer the land outside of inheritance.
What Land Classification Exists in Thailand?
The 2 main land classifications that exist in Thailand are state and private land. State land can be further broken up into:
- State property owned by government arms such as the Treasury Department and Ministry of Finance.
- National forest reserve.
- 1975 Agricultural Land Reform Act land designated for farmers.
- Public utility land such as public parks.
Private land makes up the second classification and can be broken down into land with various levels of ownership rights (such as a Nor Sor 4 Jor title deed).
How To Convert Thai Land Measurements Like Rai, Ngan, and Wah to Square Meters?
To convert Thai land measurements like rai, ngan, and wah to square meters, use the following ratios:
- 1 rai = 1,600 sqm
- 1 ngan = 400 sqm
- 1 wah = 4 sqm
