Steps in Property Title Transfer in Thailand

Transferring property ownership in Thailand is a legal process that must comply with the country’s land and property laws. Whether you are a foreigner or a Thai national, understanding the title transfer steps ensures that the transaction is completed smoothly and lawfully. This guide outlines the key stages involved in transferring property title in Thailand, from due diligence to registration at the Land Office.

1. Preliminary Due Diligence

Before entering into any transaction, it’s essential to conduct due diligence in Thailand on the property. This process includes:

Verifying the title deed (Chanote, Nor Sor 3 Gor, or Nor Sor 3) to confirm ownership and ensure it’s free from encumbrances such as mortgages, liens, or leases.
Surveying the property boundaries to confirm they match the title deed.
Checking zoning regulations to ensure the land can be used for its intended purpose.
Reviewing development permits (for condos or new buildings) if applicable.

Hiring a local property lawyer is highly recommended during this phase, especially for foreign buyers who may not be familiar with Thai legal procedures.

2. Sales and Purchase Agreement (SPA)

Once due diligence is completed and both parties agree on the sale terms, the Sale and Purchase Agreement (SPA) is drafted. This document should detail:

The purchase price
Payment schedule
Responsibilities for taxes and transfer fees
Handover date and other key terms

The SPA must be signed by both buyer and seller. In many cases, a deposit (commonly 10%) is paid upon signing to secure the agreement.

3. Foreign Ownership Regulations (For Foreign Buyers)

Foreign nationals can only own condominiums outright under the Condominium Act, provided that no more than 49% of the total unit space in the building is foreign-owned.

For landed property, foreign ownership is restricted. Common alternatives include:

Leasehold agreements (up to 30 years, renewable)
Setting up a Thai majority-owned company
Investing through the BOI (Board of Investment) for certain business operations

Any foreign currency used to buy property must be transferred into Thailand as foreign currency and documented with a Foreign Exchange Transaction Form (FETF). This is necessary for registering condominium ownership.

4. Preparation for Title Transfer at the Land Office

The Land Department is the only authority in Thailand legally empowered to register the transfer of property title. Before the transfer, the following documents must be prepared:

For the seller:

Original title deed
National ID card (or passport for foreigners)
House registration book (Tabien Baan)
Power of Attorney (if applicable)

For the buyer:

National ID card or passport
Marriage certificate (if married)
FETF form (for foreign condo buyers)

If a company is involved (buyer or seller), corporate documents (e.g., company affidavit, shareholder list) are required.

5. Tax and Transfer Fee Assessment

Before the title transfer, taxes and fees are calculated at the Land Office. These may include:

Transfer fee: 2% of the appraised value
Withholding tax: 1% of the appraised value (for companies) or based on a progressive rate (for individuals)
Stamp duty: 0.5% of the appraised value (if exempt from specific business tax)
Specific Business Tax (SBT): 3.3% if the property is sold within five years of ownership (some exceptions apply)

Typically, the buyer and seller agree to split these costs, but the arrangement may vary and should be clearly stated in the SPA.

6. Transfer of Title at the Land Office

On the scheduled date, both parties (or their authorized representatives) must appear at the provincial or district Land Office where the property is registered. The process includes:

Verifying identities and reviewing documents
Calculating and paying applicable taxes and fees
Signing the Land Department’s official transfer documents

Once all documents are verified and payments made, the title deed is updated with the new owner’s name and handed over to the buyer.

The process usually takes a few hours, but complex cases or missing paperwork can cause delays.

7. Post-Transfer Activities

After the title is successfully transferred:

The new owner should update the house registration book (if applicable).
Utility services (electricity, water) must be transferred into the new owner’s name.
For condominiums, notify the juristic office to update the ownership record and pay any remaining common fees.

Tips and Considerations

Hire a legal advisor: Especially for foreign buyers unfamiliar with Thai laws.
Be cautious of verbal agreements: Always document everything formally.
Check government valuation: The Land Office uses its own appraisal, which may differ from market value.
Plan for currency transfers: Ensure you follow the correct process to obtain FETFs when using foreign currency.

Conclusion

Property title transfer in Thailand is a structured legal process requiring careful attention to documentation, regulations, and legal requirements. Whether you’re a Thai or foreign buyer, understanding the steps—from due diligence and drafting agreements to final registration at the Land Office—will help safeguard your investment and avoid legal complications.

With the right preparation and legal support, transferring property in Thailand can be a straightforward and successful transaction.