Guide to Applying for Title Transfer in Thailand

Buying property in Thailand is a significant step, whether you're a local buyer, a foreign investor, or someone seeking a second home. One of the most important parts of the real estate purchase process is the title transfer, which legally moves ownership from the seller to the buyer. Navigating this process correctly ensures legal ownership and protects your investment. This guide will walk you through the key steps, requirements, and considerations involved in applying for a title transfer in Thailand.

What is a Title Transfer?

A title transfer is the legal process of changing ownership of a property as recorded in Thailand's official land registry system. This is done at the Land Office under the supervision of the Department of Lands, and it involves submitting documentation, paying fees and taxes, and registering the change with the relevant authorities.

Without a completed title transfer, the buyer does not legally own the property, even if a contract has been signed or payment has been made.

Key Types of Land Titles in Thailand

Before initiating the title transfer process, it's important to understand the types of land titles in Thailand. The most relevant for legal ownership and sale are:

• Chanote (Nor Sor 4 Jor): The most secure and recognized land title. It provides full ownership rights and is registered with GPS coordinates.

• Nor Sor 3 Gor: A confirmed title awaiting upgrade to a Chanote. It can be sold and transferred but lacks precise boundaries.

• Nor Sor 3: Similar to Nor Sor 3 Gor but less secure; boundaries are not clearly surveyed.

Only land with a Chanote or Nor Sor 3 Gor should be considered for safe investment.

Who Can Own Land in Thailand?

Foreigners cannot directly own land in Thailand, but they can legally own:

• Condominium units (up to 49% of a building's total space)

• Land through lease agreements (up to 30 years)

• Land via Thai-registered companies (with majority Thai ownership)

• Houses (structures) separately from land

Foreigners may, however, participate in a title transfer process when acquiring a condo or leasing land. In all cases, legal guidance is strongly recommended.

Required Documents for Title Transfer

The following documents are typically required for the title transfer process:

From the Seller:

• Original land title deed (Chanote or Nor Sor 3 Gor)

• Identification documents (Thai ID card or passport)

• House registration book (Tabien Baan)

• Marriage/divorce certificates (if applicable)

• Power of attorney (if using a representative)

From the Buyer:

• Identification documents (passport or Thai ID)

• Marriage certificate (if applicable)

• Foreign exchange documents (if foreign currency was used to purchase)

• Power of attorney (if using a representative)

Additional Documents:

• Sales and Purchase Agreement

• Lease or usufruct agreements (if relevant)

• Company documents (if a Thai company is involved)

Steps in the Title Transfer Process

1. Due Diligence and Contract Signing

Before transferring a title, it’s crucial to conduct due diligence to verify:

• Ownership and title deed status

• Legal encumbrances or mortgages

• Zoning and land use regulations

Once verified, a Sale and Purchase Agreement is signed. A deposit is typically paid, and a transfer date is agreed upon.

2. Prepare for the Transfer at the Land Office

The transfer takes place at the provincial or district Land Office where the property is located. Both parties (or their representatives) must be present, and all documents should be prepared in advance. Foreign buyers must also provide proof of fund remittance from abroad, typically through a Foreign Exchange Transaction Form (FET) if the purchase exceeds USD 50,000.

3. Payment of Taxes and Fees

Before the title can be transferred, taxes and fees must be settled. These include:

• Transfer fee: 2% of the appraised value of the property

• Withholding tax: 1% of the appraised or contract value (for companies); calculated based on income for individuals

• Specific business tax (SBT): 3.3% (if property is sold within 5 years)

• Stamp duty: 0.5% (if SBT is not applicable)

These fees are usually shared, but it depends on the contract. Make sure the agreement clearly states who pays what.

4. Title Registration

Once fees are paid and documents approved, the Land Office official will register the new owner on the title deed. A new deed is issued or updated to reflect the buyer’s name, and the buyer becomes the legal owner from that point.

Special Considerations for Foreign Buyers

• Condominium purchases by foreigners require that foreign ownership in the building does not exceed 49%.

• Foreign buyers must remit purchase funds from abroad in foreign currency and document it properly (e.g., FET or bank letter).

• A foreign individual cannot register a Chanote in their name for land, but long-term leases and surface rights (building ownership) can be registered.

Tips for a Smooth Title Transfer

• Hire a local lawyer experienced in real estate law to assist with due diligence and documentation.

• Use a licensed translator if documents are in Thai and you are not fluent.

• Visit the Land Office early in the day and book an appointment if possible.

• Confirm the property’s zoning and permitted use with the local authorities, especially for commercial investments.

• Keep all receipts and certified copies of the transaction for future legal or tax purposes.

Conclusion

Transferring a property title in Thailand is a formal, legally binding process that requires careful planning, proper documentation, and compliance with local laws. For both Thai nationals and foreigners, a smooth title transfer not only finalizes a property deal but also protects your rights as the new legal owner. The process can seem complex—especially for non-residents—but with professional guidance and the right preparation, it can be a secure and efficient transaction.