Understanding Title Deeds in Thailand is important as you could lose your investment if you are not careful. Land classification in Thailand is not the same as what you would expect at home. There are two main classes of private land in Thailand. The first is full ownership and the second is possession. Certain land types (being for Thais’ only) is Por Bor Tor 5, Sor Kor 1, Tor Bor 5, Sor Por Gor 4. The most common feature with these types of land classification is that it is for possession only. Why this becomes all important is that many times expats will buy land for their wife as a gift or for the family as part of the wedding ceremony but buying this type of land will not give them full ownership but only possession rights.
Most Thai’s ignore this fact however it does become important when they either want to build on the land or sell the land later. This land cannot be transferred or for that matter sold. This is where the problems arise as you could very well end in a land scam. Looking back at Samui island there had been huge issues with the land classification as there where more Title Deeds than there was actual land for transfer. On closer investigation the Land Department found that land was being sold that was classified as forestry land. Now, if you had fallen into such a scam you would have lost your money just as the many British who lost their investments in Samui that year. Land without a Title Deed has very little value as it cannot be sold and any building requires government permission.
Before you buy any land in Thailand always seek the advice of a conveyancer in Thailand to point you in the right direction. With offices in all the major cities in Thailand we at Siam Legal are best able to assist you with any form of conveyancing and advise you as to Title Deeds and property transactions.
Speak to one of our conveyancers today!