Property Title Transfer in Thailand can be a complicated process and there are specific procedures and requirements that must be followed. Obtaining the services of a qualified lawyer or a real estate agent who is knowledgeable about Thai land titles and procedures is highly recommended.
The buyer and seller must go together to the Land Department with supporting documents such as the title deed (Chanote) and sales and purchase agreement. The buyer is also responsible for paying a number of fees and taxes.
The property title transfer procedure in Thailand can vary based on the type of property and region. To ensure a smooth and legally compliant process, it’s recommended that buyers consult with legal professionals or experts familiar with Thai property law to guide them through the process.
Due diligence is a crucial step in the transfer process, which should include reviewing the title deed, land surveys, and ownership history of the property to ensure it’s free of any liens or disputes. It’s also a good idea to make arrangements for the transfer of utilities, such as water and electricity, into the buyer’s name to guarantee continuity of service.
To complete the process, both the buyer and seller must present themselves at the Land Department with all required documents. If either party is unable to attend in person, they can sign a power of attorney and choose someone else to represent them (this can be your Keller Henson team or a local property lawyer). You will then need to pay the appropriate transfer fees and taxes at the Land Office.
Due diligence involves a thorough investigation of specific facts and details about a property prior to purchase. This includes a review of the land title deed and its history, possessors, and registered encumbrances; checking that the company is legally registered and that the ownership share is properly recorded; a survey of the land size, shape and orientation (to ensure that the land title accurately represents the offered property); and zoning law reviews concerning permitted uses of the property.
If the property consists of land and house or condominium, the seller should be able to provide a certified copy of the office government issued ownership’s title deed front and back sides and a previous land office sale agreement (where applicable). If you are purchasing off plan, the developer should be able to show you a complete building permit and a detailed blueprint. You will also need to check that the zoning laws have been adhered to.
Transfer Fees and Taxes
In Thailand, transfer fees and taxes are imposed upon the sale and transfer of real property such as condominium apartment, land or house. They include a government transfer fee, specific business tax (SBT), and income withholding tax.
Specific business tax is 3.3% of the government appraised value or actual sales price whichever is higher. In this example, if the sale price is 800,000 baht, specific business tax would be 16,000 baht.
Buyers and sellers must pay these fees and taxes at the land office when they are transferring ownership of the property. If the seller or buyer cannot physically be present, they can make an Ownership Transfer Power of Attorney and appoint someone to go to the land office on their behalf. It is important that the power of attorney follows strict standards that are regulated by the Land Office. This ensures that the process is completed correctly and that the document will be accepted by the department.
Throughout the process, legal professionals should be utilized to ensure that all necessary paperwork is complete. This includes performing extensive due diligence, verifying ownership history, examining the land survey records and checking for any liens or other issues that would prevent a transfer. It’s also important to make arrangements for transferring utilities and services into the buyer’s name at the land office.
Property law and procedures vary based on region and individual circumstance; therefore, consulting with legal professionals specializing in Thai real estate is advisable. They will be able to offer individualized guidance and assistance.
Nor Sor 3 Gor is the most secure form of land title document in Thailand. It grants the owner full ownership rights and can be sold, transferred, assigned, leased, mortgaged or passed on to heirs. This type of land title can be upgraded to a Chanote document. Most other land titles in Thailand are SK1 documents, which do not grant true ownership but only a right of possession with inaccurate surveyed boundaries.