In the acquisition of real estate property in Phuket Thailand, it is important to make sure that the land already has Chanote (also called as main title deed or freehold title). Title deed is a document which identifies what type of possession you have. It also determines what rights you have towards that relevant property. The following are the various types of title deeds in Thailand:
1. Freehold title deed (also called as Chanote or Nor Sor 4)
This type of title deed is the main title deed which grants the holder full rights over the land. With the Chanote in your possession, you may sub-divide, sell, transfer, assign, utilize and possess. The land with a chanote has the most accurate measurements. If you are considering to buy property in Thailand, it is preferred that the land has Chanote as its title deed. Condominiums are usually built on Chanote title.
2. Nor Sor 3 Gor
With a land having Nor Sor 3 Gor title document, it means that the land is awaiting a full title deed. The land has also been measured by the Land Department, with its exact boundaries determined by using the aerial survey. This would determine what the landowner exactly owns. The type of land with the Nor Sor 3 Gor title may be sold, transferred, mortgaged, as well as divided. Nor Sor 3 Gor can be changed to a full title deed (Chanote) by filing a petition to the Land Department. Without an opposition made against the petition, Chanote can be granted.
3. Nor Sor 3
Nor Sor 3 title deed is limited to having the right to possess the land, without transferring actual possession. If a land only has Nor Sor 3 title, it means that the land has no exact boundaries or exact parcel points. The land has never been measured yet by the Land Department, though a title deed must have been issued by a district land officer. Disadvantage of Nor Sor 3 title is that the owner cannot determine the area of his land, and in comparison and division to neighboring land. The land with a Nor Sor 3 title can be sold or transferred provided that there will be a 30-day period of public notice. The Nor Sor 3 title may later be switched to a Nor Sor 3 Gor, and upgrade that title to a freehold title deed (Chanote) in the future.
4. Possessory Right
A land with mere possessory right does not contain any form of ownership of the land. This has never been substantiated by Department, but is only recognized by tax payments at the Local Administrative Office. Thus, a land with only a possessory right as a title deed is least recommended, and is not advisable to purchase.
Example of titles that are mere possessory rights include Sor Kor 1: which allows occupation and utilization of the land upon the owner; and Nor Sor 2: a title that is issued by the land department and allows for the same as the Sor Kor 1 (that is- possession, occupation and utilization). Only, the land with Nor Sor 2 title is allocated to occupy within 6 months, thus must be utilized within the expiration period of three years beginning from the date of receiving possession.