Sound advice for foreigners
Buying land in Thailand is full of
dangers. Horror stories abound, including foreigners 'viewing' nice
plots of land, but then finding that the land they just paid for is NOT
that piece of land but another (less desirable) plot. Various
other 'scams' are commonplace so be careful. ALWAYS check the
papers when considering buying land. If the land has proper title (Chanott
or Nor Sor Sam Kor) this will give reference numbers for markers at
various points on the land. There should be a concrete post (often
buried) in the ground at the corresponding point and it should have the
same reference numbers on it. If the land does not have full title (Chanott
or Nor Sor Sam Kor) then DON'T BUY IT (read below for some of
the reasons why). If the markers are different then DON'T BUY IT.
Jasmine Homes only deal with
land that has full title and purchasers are encouraged to check the
papers and the markers. We can help through the whole process of
acquiring land including legal advice where needed. Our land plots at
Jasmine Gardens have full Chanott so you can buy with confidence.
We can also help you find the perfect piece of land if Jasmine Gardens
is not right for you.
The following article was written
by Phil Macdonald of The Nation newspaper. It
is worth reading if you are considering buying land.
Thai property law states that with
a few exceptions - like a Board of Investment approval or suitcases full
of money deposited in a Thai bank - foreigners are not allowed to own
freehold land. They can only lease the land for a maximum of 30 years.
But Thai law has many grey areas; in fact, it seems at times it has more
grey areas than black and white areas.
In 1999, the government lurched
out of the 19th century to amend the property law to allow a Thai spouse
(male or female) of a foreigner to buy land.
Unfortunately it only lurched as
far as the early 20th century. For the spouse to buy land, proof is
required that the money used to purchase the land is legally the Thai
partner's, with no foreign claim to it. Get divorced or separated and
the Thai "ex" gets to keep it all. Even if the Thai spouse dies, the
foreigner has no claim to the land and there is nothing to stop the
relatives from moving in (if they haven't already) and booting you out.
If you want a house to call your
own without the prospect of your spouses' relatives circling hungrily,
this is not a good option.
Most foreigners who "own" land and
houses - as opposed to condos, which can be owned outright - go for a
leasehold agreement of typically 30 years, with two prepaid 30-year
renewals. The lease will include clauses that automatically allow
freehold ownership if the laws of foreign ownership change in the
future, and the right to sell and/or transfer the property.
This gives you 90 years with
strong backup, making it effectively ownership.
Just to complicate things a
little, while you can only lease land, all the buildings - either on the
land when it was purchased, or improved or built by you after purchasing
the land, are yours freehold. Technically this means that once the lease
expires, the owner of the land must purchase the building(s) at an
independently and legally valued price, or negotiate another lease
period. God knows how that can work.
The structure of a lease agreement
needs to be watertight. But because this has become the preferred way of
holding land in Thailand for foreigners, this type of lease agreement
has become more or less a template, with add-ons to suit individual
buyer's needs.
But don't draw it up yourself. Get
the advice of a lawyer versed in such things. And don't sign anything or
hand over any money until you fully understand and are happy with what's
written on the lease agreement.
One thing you need to be aware of
is the title status of the land you are purchasing. In much of upcountry
Thailand, including favourite places to buy for foreigners like Phuket,
Ko Samui, Pattaya and Hua Hin, most land has not been surveyed or has
been dubiously titled.
Land is titled depending on its
survey status. Make sure of the land title before you buy - often prices
vary greatly depending on the type title - or you might find someone
else laying claim to your rai after just after you finish building your
retirement home.
"Chanott ti din" are title deeds
with land accurately surveyed. If you have one, it gives you
incontestable possession of the land. The most developed areas of
provinces have these titles. But even in farang-friendly Phuket, for
example, only 10 per cent of the land is under this title.
As it stands, most "titles" around
the country are "Nor Sor Sam" or "Nor Sor Sam Kor". They are land title
deeds in as much as clear records of ownership are maintained, and that
they may be sold or leased, but they tend to be less accurately surveyed
than Chanott titles.
If purchasing Nor Sor Sam-titled
land that lacks clearly defined physical boundaries, ask the owner to
stake out the boundaries and then ask neighbouring landowners to confirm
his work.
And there are more. Sor Kor Nung,
Tor Bor Tor Hoc, and Tor Bor Tor Ha are essentially squatter's rights
registered at the district office for a small fee. Unlike the Chanott
and the Nor Sor Sam Kor, they cannot legally be sold, nor can you build
on the land if you are stupid enough to buy it. So be a prudent
foreigner and ignore the Sor Kors and Tor Bors.
Oh yes, I almost forgot one: the
Sor Bor Kor. These are true title deeds, accurately surveyed and pegged
(like a Chanott). They can be mortgaged and developed. But the big but
is they cannot be leased, sold or transferred.
So, also ignore Sor Bor Kor.
Chanott and the Nor Sor Sam Kor
are the only titles over which a registered right of ownership or lease.
Stick to them.
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