Property ownership in Thailand is legally recognized through title deeds, and transferring ownership from one party to another requires a formal title transfer process at the Land Office. Whether you are buying, selling, gifting, or inheriting property, understanding the legal requirements, costs, and procedures of title transfer is essential.
This guide provides a comprehensive overview of the property title transfer in Thailand, including key legal aspects, required documents, and potential pitfalls to avoid.
1. What is Property Title Transfer?
Property title transfer is the legal process of transferring ownership of land, houses, or condominiums from one party (seller) to another (buyer). This process must be completed at the Land Department in Thailand to be legally recognized.
💡 Why is it important?
- Ensures legal ownership of the property.
- Protects both buyers and sellers from fraud.
- Establishes legal rights over the property.
2. Types of Property Titles in Thailand
Before transferring ownership, it’s crucial to understand the different types of title deeds (Chanote) in Thailand:
Title Deed Type | Description | Can Be Transferred? |
---|---|---|
Chanote (Nor Sor 4 Jor) | Full ownership with land boundaries surveyed by GPS. | ✅ Yes |
Nor Sor 3 Gor | Ownership rights but awaiting full Chanote status. | ✅ Yes, but requires surveying before full ownership. |
Nor Sor 3 | Ownership rights, but land boundaries are not officially marked. | ✅ Yes, but less secure. |
Sor Kor 1 | Certificate of land possession without ownership rights. | ❌ No (Cannot be transferred). |
💡 Tip: Always ensure the property has a Chanote title deed for the safest and most secure ownership.
3. Legal Requirements for Title Transfer
Who Can Own Property in Thailand?
✔ Thai citizens can own land and houses freely.
✔ Foreigners cannot own land directly but can:
- Own condominiums (up to 49% of total units in a building).
- Lease land for up to 30 years with renewal options.
- Buy land through a Thai company (with restrictions).
💡 Tip: Foreigners purchasing condos should verify that the building has not exceeded the 49% foreign ownership limit.
4. Step-by-Step Process for Property Title Transfer
Step 1: Perform a Title Search at the Land Office
- Verify the title deed is authentic and legally owned by the seller.
- Check for any mortgages, encumbrances, or legal disputes attached to the property.
💡 Tip: This step helps avoid scams and ensures the seller has the legal right to sell the property.
Step 2: Prepare Required Documents
Documents Required from the Seller
✔ Original title deed (Chanote).
✔ Seller’s Thai ID card & house registration (Tabien Baan).
✔ Marriage/divorce certificate (if applicable).
✔ Mortgage release letter (if the property had a loan).
Documents Required from the Buyer
✔ Buyer’s Thai ID card or passport (if foreign).
✔ Marriage/divorce certificate (if applicable).
✔ For foreigners: Proof of funds from abroad (if buying a condo).
💡 Tip: If the buyer is a foreigner, funds must be transferred in foreign currency and documented with a Foreign Exchange Transaction Form (FETF).
Step 3: Sign the Sales and Purchase Agreement
- The contract should include:
✔ Property details (title deed number, location, size).
✔ Agreed price and payment terms.
✔ Responsibility for taxes and transfer fees.
💡 Tip: Always have a lawyer review the agreement to ensure fairness and legal compliance.
Step 4: Pay Transfer Fees & Taxes
✔ Transfer Fee: 2% of the property’s registered value.
✔ Stamp Duty: 0.5% (if no business profit is involved).
✔ Withholding Tax: 1% for companies, variable for individuals.
✔ Specific Business Tax: 3.3% (if selling within 5 years of purchase).
💡 Tip: Negotiate with the seller about who will pay the transfer fees—sometimes, costs are split.
Step 5: Register the Transfer at the Land Office
- Both parties (buyer and seller) must be present.
- Submit all required documents.
- Pay the official fees and taxes.
- The Land Office officer updates the title deed with the buyer’s name.
💡 Tip: The title transfer process is completed on the same day unless complications arise.
5. Special Cases in Title Transfers
1. Title Transfer by Gift or Inheritance
- Gifted property incurs a Gift Tax if the value exceeds THB 10 million.
- Inheritance Tax applies if the estate is worth more than THB 100 million.
2. Foreign Ownership of Condominiums
- The condo project must not exceed the 49% foreign quota.
- Funds for the purchase must come from abroad and be documented with an FETF.
3. Property Transfer Between Spouses
- If married under separate property laws, a contract is required to clarify ownership.
- If divorced, property division follows marital asset laws.
6. Common Pitfalls to Avoid
🚨 Fake or forged title deeds – Always verify at the Land Office.
🚨 Undisclosed debts or mortgages – Conduct a title search before purchase.
🚨 Incorrect zoning regulations – Ensure the land can be used as intended.
🚨 Foreigners buying land illegally – Work with a lawyer to structure the purchase correctly.
🚨 Failure to properly register the transfer – Without Land Office registration, the buyer has no legal ownership.
💡 Tip: Hiring a real estate lawyer ensures a smooth and legally compliant transfer process.
7. Estimated Costs for Title Transfer
Expense | Estimated Cost (THB) |
---|---|
Lawyer’s Fee (optional) | 20,000 – 100,000 |
Title Search | 3,000 – 10,000 |
Transfer Fee (2%) | Varies by property value |
Withholding Tax | 1% of assessed value (for individuals) |
Specific Business Tax | 3.3% (if applicable) |
Stamp Duty | 0.5% |
💡 Tip: Always clarify costs upfront to avoid surprises.
8. Conclusion
Property title transfer in Thailand is a straightforward but legally complex process. Whether buying, selling, or gifting property, following the correct legal procedures protects ownership rights and prevents future disputes.
✔ Key Takeaways:
- Always verify the title deed at the Land Office.
- Understand the transfer fees and taxes involved.
- Foreigners should follow legal ownership restrictions.
- Work with a lawyer for safe and legal transactions.