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Land
Titles
A 'Chanote'
(Title Deed) is the best form of evidence that an individual owns a piece of
land. However, title deeds are given only for areas of Thailand which have
been surveyed accurately using satellite GPS. For all other areas,
documents that indicate the possession of the right to utilise the land are
used. If you are looking to buy land to use for anything other than
agricultural purposes then the three land documents you'll be looking out
for are:
Chanote
A freehold
title which is registered with the Land Department in the province in which
the land is located, and there is no waiting time required to transfer
title. Chanote titles are accurately surveyed, plotted in relation to a
national survey grid and also marked by unique numbered marker posts set in
the ground. The land is also able to be subdivided, into a maximum of nine
subdivisions and resold as smaller plots. Needless to say, land sold with a
'Chanote' is by far the most expensive.
Nor Sor
Sam Kor
This
certifies that the person named on the certificate has the confirmed right
to use the land, implying all requirements for the issuance of title deed
have been met, and issuance of the ‘Chanote’ title deed is pending. (How
long it takes to convert the N.S.3 K. into a Chanote title is up to he local
government.) This land may be sold, leased, used as mortgage collateral etc
and also subdivided.
The
Chanote and the
Nor. Sor. Sam.
Kor. are the only titles over which registerable right of ownership or lease
can exist.
Nor Sor
Sam
Similar to
the above except that not all of the formalities to certify the right to use
have been performed. Before a transfer can be made, a notice of intent must
be posted and then 30 days public notice is necessary before any change of
status over the land can be registered. Boundaries will not be as accurate
as the above two forms of title, therefore obtaining confirmation of land
boundaries from neighbours prior to buying is essential. One plus point is
that the land may be divided into far more subdivisions than Chanote titled
land.
Agricultural land
Any
well-situated land that is offered at a comparatively cheap price is
unlikely to have any of the titles above. It will almost certainly have one
of the other forms of land document that are basically a confirmation of
user's rights. Land claim documents go by various names, the most common on
Koh Chang being Por. Bor. Tor. Ha.(PBT5)
If you speak to a lawyer who you're paying to
give you exact letter-of-the-law-advice, they'll say you can't build
anything on it and it could be taken from you without warning by the
government. (Hope you haven’t stopped reading now.)
However, as with many laws in Thailand this
is one which so many people have ignored for so long as to make it totally
unworkable and unenforceable in real life. The simple reason being, the law
basically denies a person the right to live on their own land . . . unless
they're in a tent. Therefore, a compromise is called for.
In the real world, you can build a house or
two on PBT5 land without any problem. But you do have to get the permission
of the local Pu Yai, an elected local official with responsibility for a
specific area of the island, and you must submit plans to the local planning
office. (As with all dealings with government officials, don’t be surprised
if you’re requested to hand over a few thousand baht in ‘unspecified
administration fees' which increase the prospect of your plans being
approved quickly and not sitting at the bottom of a pile labeled ‘For review
in 2007’.)
Although
there are resorts and large businesses set on PBT5 land on Koh Chang, doing
this would be considered pushing your luck and can’t be recommended.
It is
possible for these land claim ‘titles’ to be upgraded to N.S.3. or Chanote
title. (Beware of anyone who says they can do this for you for a fee, if it
was so easy to do then common sense dictates that all the land on the island
would already have been upgraded to maximize the seller’s profits if it was
so easy to do so.)
The legal
upgrading of land is an ongoing process that is being done on Koh Chang.
Officials have been out and about surveying land in order to issue upgraded
land documents. So, if you are willing to be patient, buying agricultural
land which has been surveyed for an upgrade will pay off handsomely a soon
as an N.S.3 or Chanote is issued and it's market value increases by 300%+
overnight!
A simple
fact is that all the high priced Chanote land was once Por Bor Tor (or
equivalent) land and someone made a fortune when the land title was
upgraded. Someone will have the same windfall when the next crop of Por Bor
Tor titled land parcels receives an upgrade.
The land
claim document (basically a tax receipt) will show if the land has been
surveyed by the local government or not as there will be a plot number on
the document. Boundaries on these documents aren't shown, you rely on the
seller and their neighbours to show where the borders of the land are.
Therefore, it's essential that you meet the neighbours or their
representative, when the land is being measured up prior to the sale as this
will avoid any misunderstandings regarding land boundaries. If you are
cautious and have good local advice then this will reduce any possible
problems associated with buying this type of land.
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Please
note:
Agricultural land is a popular choice for
people who only want to build a house on Koh Chang. The popularity is
mainly due to the price when compared to 'NS3K' or 'Chanote' titled land.
Never the less, we would always advise buyers to purchase ‘NS3K’ or 'Chanote'
titled land if they have the finances to do so.
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