Having your own house is a dream of every person. However, to own a home requires a lot of legal procedures and rules that need to be followed. In Thailand, the process of buying a home and property title transfer is quite complicated and needs to be handled with care. It is therefore highly recommended to hire an experienced real estate lawyer before attempting to purchase a property.
Ownership of Land
The ownership of a piece of land is the first step to owning a house in Thailand. In Thailand, there are several ways to prove that you own the land, such as a lease agreement or a Thai script sale of a structure document issued by the local land office.
A land deed is a document that proves the owner of land and registered encumbrances on the land. The most common type of land deed is the “Nor Sor Sam” or the “Nor Sor Sam Kor” which are clear title deeds that can be leased, sold or transferred.
Other types of land deeds include the “Sor Kor Nung” and the “Sor Bor Tor Hoc” which guarantee the occupant’s rights to the land. Despite their accuracy, these land title deeds can only be transferred or leased by a land authority or government department.
The Land Department will inspect the land and if all the paperwork is in order, they will issue a new title deed to the new owner. There are also certain documents that need to be attached to the new title deed, such as a building permit and a certificate of title.
There are many other documents that may be attached to the new land title deed, including a mortgage and a lease, but this will depend on the specific property being purchased. A good real estate lawyer will have all the necessary documents and certificates ready to go when he arrives on site for the property transaction.
Taxes and Fees
In Thailand, there are several taxes and fees that need to be paid when transferring property ownership. Depending on the type of property being transferred, these can include a transfer fee, specific business tax (SBT), stamp duty and income withholding tax.
Purchasing a house in Thailand is a very exciting event. The purchase of a house and the land that goes with it is often the most significant investment in one’s life. It is therefore important to ensure that the real estate transaction complies with all the laws of Thailand, in order to protect your investment.
As there are many laws that need to be abided, it is important to seek professional help from an experienced real estate lawyer when preparing the documentation for your purchase. This is especially true if you are a foreigner and will be acquiring the property for yourself.
If you are not a Thai national, then the transfer of the land deed and any other related documentation will need to be completed by the land department. This will require an appointment, and you will need to prepare a power of attorney. This power of attorney must be certified by a lawyer or public notary.