Property Title Transfer is a vital step in the property buying process. It’s also the point at which utility accounts (water and electricity) are switched over into the buyer’s name.
The documents you need to present at the Land Department are the Chanote and any registered encumbrances. If you are unable to attend the office in person, you can make a Power of Attorney which authorizes someone else to act on your behalf.
Obtaining a Title Deed
A title deed is a legal document that confirms a person’s rights and ownership over land or real estate in Thailand. It also records any encumbrances or leases the owner has granted to third parties. Performing a title deed search is essential to ensure that a property you are buying comes with a valid and clear title.
There are several types of land title deeds in Thailand but the most secure is the Chanote (Nor Sor 4 Jor). This is a certificate of ownership which can be presented to government authorities and allows for usufruct, mortgages and long-term leases to be registered over the property.
Other titles include Nor Sor 3 Gor, which is a right of confirmed possession similar to ownership but cannot be sold or leased and is usually found in rural areas. It can be upgraded to a Chanote by applying to the Land Department but this process can take up to 10 years and involves paying land reform fees.
Obtaining a Power of Attorney
A Power of Attorney is a legal document that allows a person to act on another’s behalf. The person giving the authority is called the Principal or Grantor and the one receiving it is known as the Agent or Attorney-in-Fact. This is a crucial document used in many different transactions.
To be valid and accepted by Thai authorities, a power of attorney must follow a specific format and include certain elements. For example, the transferor must clearly mention the authorized activities and any special conditions. It is also necessary to write the name of the person signing the power of attorney. It is also not acceptable to use various printing or different colour, and the signatures should be legibly written.
If a foreigner wants to sign a power of attorney from abroad, they must have it certified by a Thai embassy or consulate and a notary public. This process is complicated and requires the assistance of a professional.
Visiting the Land Department
When a buyer is ready to transfer ownership of their property in Thailand, the first step is to obtain their title deed from the Land Department. This document proves ownership of the land and lists any registered encumbrances on the property such as leases or mortgages.
The Land Department is a government agency that handles land topography, cartography and real estate transactions in Thailand. As a legal requirement, all real estate transactions in Thailand must be registered with this office.
The Land Department also provides various types of land documents ranging from temporary occupation and use to confirmation rights of possession. These documents can be upgraded to a full title deed, known as Nor Sor 4 or chanote. Depending on the location of the land, they can also be transferred to a company that will be able to own and sell it indefinitely.
Completing the Transfer
Visiting the land office to register transfer of ownership is one of the final steps of the process. The buyer must compile all of the necessary paperwork and pay the required transfer fees and taxes at the land department. These fees include a land transfer fee, specific business tax (if applicable), stamp duty, and withholding tax. For foreign buyers, it is advisable to work with a lawyer or real estate agent Bangkok who can assist with this step.
The buyer will also need to bring copies of their identification documents. These should include their passports or Thai ID cards. After all of the required transfer fees and taxes have been paid, the buyer will be able to pick up their new title deed from the Land Department. The buyer can even complete this step remotely from overseas using a Power of Attorney provided by the Land Department. Depending on the country of residence, this Power of Attorney may be required to be notarized.