Land Owning Laws in Thailand

Thai law stipulates that a foreigner may not own land in his name, but is entitled to the right of ownership only.

If a foreigner wishes to buy land, there are 2 options:

1. The land can be purchased on a 30 year lease, after which there will be the choice to extend the lease after the 30- year period. Possession of the land is assured by virtue of the fact that the property occupies the land. The proprietor cannot seize the property upon the expiration of the lease, as the property is separate from the land.

2. If a foreigner is going to operate a business in Thailand , then he may purchase the freehold of the land through his company. Thus, the land will be owned entirely by the company and not an individual.

Land Titles

There are a variety of land titles in Thailand , with the majority not allowing the legal right to build on that land. Only 3 land titles are recommended Viz:

• Nor Sor 3
• Nor Sor 3 Gor
• Chanote

In the beginning, i.e. the Sukhothai era, most of the Thai land belonging to the people, who reserved the right to use and transfer the land to their heirs. Later, in the Ayutthaya and Ratanakosin era, the land was owned by the kings and therefore, a royal grant had to be requested by the people in order to obtain land.

There are two types of rights to private land :

1. The first is the right of possession (possessory right) i.e. people who possess and benefit from the land, under the Civil and Commercial Code.

2. The second right is ownership by a person in possession of a title deed and documents concerning land ownership.

1. Nor.Sor.3

This is the lowest land title which legally allows for building a property and certification of the land issued by the government to the proprietor of the land not as a possessory title i.e. it is legally confirmed that such a person holding Nor.Sor.3 has the legal right to possess the land.

This land title can be used as a legal document or to the land owner's benefit.

Nor.Sor.3 is a floating map with no points of limitation. It is not issued for a specific plot of land, nor is it connected to other land plots. This may cause problems in verifying the land area and so, any legal acts must be publicized for 30 days.

2. Nor.Sor.3 Gor

This is the legal land title with the same basis as Nor.Sor.3. The difference being that Nor.Sor.3 Gor has actual limitation points on the map depicted by using aerial surveillance to set the actual co-ordinates and land area. It is possible to verify a land area nearby. The same land scale of 1:5000 is always used. Thus, there is no need to publicize any legal acts, as it is now possible to partition (divide) the land into smaller plots.

3. Chanote - Land Title Deed

This is a certificate declaring the ownership of the land. A person in possession of this deed has a legal right to the land and therefore can use it as confirmation to the government authorities. This title deed has been issued by using a GPS to depict the area and boundaries of the land. Any legal acts may be carried out immediately, as per the right of ownership. Land partition of more than 9 plots must be carried out according to the Land Allotment Law, Section 286. This is the most secure type of land title and thus, is highly recommended.

4. Condominium

Where the land is not included, foreigners have the right to ownership of buildings only. A suggestion is for a foreigner to lease the land for 30 years, after which there is an option to extend the lease or purchase the house on the land certainty of the land possession and house is therefore assured by being the rightful owner of the house. The ownership of the land shall be leased out if such an arrangement is made, then the house will be separate from the land and not a component under Civil Law. Ownership of buildings can be confirmed, but the proprietor cannot seize the house when the lease expires.

More information can be found at Phuketlandsale.com