Different Land Classes & Papers

[jubby]

Can't quite get the right title as I've had a bottle of chang,

but what I'm after is a quick explanation of the different types of land ownership available here in Thailand.

We have a bit of Land in the village with a paper showing that we bought the land, but no Chanote, no one in the village has a Chanote. I've been told it will come eventually as its a relatively new village.

I've seen a potential plot of land that I would like to buy for the wife & Kids ( I know I'm not allowed).

The Land in question has got a Chanote, I don't fully understand this, but I think its a legal paper, similar to deeds and is probably the safest way to go, although It appears to be the most expensive, and requires some payments & tax's to transfer to my wifes name. Someone said I need to pay a 5% land registry type tax, and then a further 3% Tax on this Tax.

It appears my wife can also buy land without this chanote for a fraction of the cost of land with a chanote. It appears lots & lots of people have this sort of Land. They say the papers will come eventually.

I've also come accross farming land that appears to have been given by the government to poor farmers with the instruction that they don't sell it. It appear that they sell it anyway.

I've also come across farming land that appears to have just been cleared and claimed by farmers.

Where would you put your money ?, I know it seems obvious to go with the chanote, but I thought I would check other peoples experiences of the other options. Hope I'm making some sense here ;-)

Cheers

Jubby

[Artamus]

Can't quite get the right title as I've had a bottle of chang,

but what I'm after is a quick explanation of the different types of land ownership available here in Thailand.

We have a bit of Land in the village with a paper showing that we bought the land, but no Chanote, no one in the village has a Chanote. I've been told it will come eventually as its a relatively new village.

I've seen a potential plot of land that I would like to buy for the wife & Kids ( I know I'm not allowed).

The Land in question has got a Chanote, I don't fully understand this, but I think its a legal paper, similar to deeds and is probably the safest way to go, although It appears to be the most expensive, and requires some payments & tax's to transfer to my wifes name. Someone said I need to pay a 5% land registry type tax, and then a further 3% Tax on this Tax.

It appears my wife can also buy land without this chanote for a fraction of the cost of land with a chanote. It appears lots & lots of people have this sort of Land. They say the papers will come eventually.

I've also come accross farming land that appears to have been given by the government to poor farmers with the instruction that they don't sell it. It appear that they sell it anyway.

I've also come across farming land that appears to have just been cleared and claimed by farmers.

Where would you put your money ?, I know it seems obvious to go with the chanote, but I thought I would check other peoples experiences of the other options. Hope I'm making some sense here ;-)

Cheers

Jubby

This is a very complicated subject, and way too difficult to explain in detail on a board. For a foreigner (with or without a Thai partner) the only really concrete route is to go with the chanote. Any other route is frought with complications and potential downfalls.

Land with Chanote can be leased to a farang for 30 years. If the land is bought by your wife she can then lease it to you for 30 years. This protects you in the event of her death. Of course having children makes the 30 year lease less necessary as the land would pass to them anyway.

As you mention land without titles is cheap (for a good reason!). Buying this can go very wrong, if any conflict arrises with the original land owner. My advise is to stick with the chanote and sleep at night!

[Artamus]

I don't fully understand this, but I think its a legal paper, similar to deeds and is probably the safest way to go, although It appears to be the most expensive, and requires some payments & tax's to transfer to my wifes name. Someone said I need to pay a 5% land registry type tax, and then a further 3% Tax on this Tax.

Cheers

Jubby

Indeed taxes are raised at the land office as mentioned above, but in my experience the land office staff usually come to "arrangement" to reduce the taxes one way or another. See if you can find some friend who has a contact at the land office, and you'll be amazed how those taxes are recalculated......

[jubby]

Thanks Artamus,

I'm just trying to get my head around all the options before parting with my hard earned cash.

Land with a Chanote appears to be 10 times more expensive than without, And land without appears to have various papers, and stages towards getting a Chanote. I know it is a complicated subject but I could do with as much info and advice as possible. It can't be anymore complicated than some of the threads running on here about the thai Economy, or immigration ;-)

I could live quite happily in a Tent or a bivvy bag under a tree myself ; but as I have 3 young girls with dual-nat , I can't help having thoughts about investments for there future, Thinking I'll probably have to assist them a bit more here than I would in the UK ;-)

Cheers,

Jubby

[goldfinger]

""Thinking I'll probably have to assist them a bit more"" ......

This fact is much more sure than each Chanote Title.......( but of course a verry good idea)

Good Luck

Edited July 15, 2007 by goldfinger

[jubby]

probably. ...... But I may be able to assist them with some Land or property over here. I most definately couldn't in the UK as a generalisation we probably have the most expensive property and land prices in the World , and probably spend more per capita on Housing & related costs than anyone else in the world.

Cheers ;-)

Jubby

[Mid]

Thailand land title deeds

There are many different types of land titles in Thailand, the majority of which do not allow the legal right to build a house on that land.

Invest-Thailand.com

[jubby]

Thanks Mid.

Thats just what I'm looking for.

cheers,

jubby

[andrisdg]

the link re land titles does not work for me ,whats the problem .the details should be of interst to all falange .its also important to ensure the seller has the full autority of all family members including those who have dissapeared

[1Rai.com]

The link didn't work for me either...

Anyway, there are 4 types of title that are most relevant to farangs; Chanote (Nor Sor 4 Jor), Nor Sor 3 Gor, Nor Sor 3 and Condominium.

True land title deeds are officially called Nor Sor 4 Jor or more commonly "Chanot" and are issued by the Provincial Land Office. Land held under a Chanot is accurately surveyed and GPS plotted in relation to a national survey grid and marked by unique "numbered" marker posts set in the ground.

Nor Sor 3 and Nor Sor 3 Gor titles are, in the strictest interpretation of the law, certificates of land utilization. They are to all practical purposes equivalent to land title deeds because they allow the land to be sold, leased or mortgaged in the same way as land held under a Chanot Title. The difference lies in the fact a Nor Sor 3 certificate is less accurately surveyed than the Chanot. Nor Sor 3 boundaries are recorded in relation to its neighbouring plots and therefore there may be survey errors in length and land area. The newer Nor Sor 3 Gor is in general a much more accurately surveyed title as each plot is cross-referenced to a master survey of the area and a corresponding aerial photograph - therefore it is possible to argue exactly where its borders lie.

I imagine that you currently have a Nor Sor 3 - but your best bet is to check it with a lawyer.

A Condominium title allows 49% of the total sqm to be sold, freehold, 100%, to foreigners, in their own names. The other 51% must be owned by Thais/Thai companies. This is because the land is jointly owned by all the units in a Condo development

There are also a host of other "land papers" - Tor Bor 5, Tor Bor 6, Sor Kor 1, etc. These are, in essence, a form of claims to possessory rights which have been filed with the district land office and upon which a small tax fee has been paid. The land held under these papers cannot be dealt with by way of sale, lease or mortgage. Legal acts cannot be carried with respect to the property and you cannot apply for and obtain approval to build ("permanent" structures) on the land. The land can be used for some purposes - e.g. farming - depending on the exact land paper.

[1Rai.com]

My advice - do the right thing, be sure and check with a lawyer.