Property Title Transfer in Thailand is the process of registering a transfer of ownership of a piece of land under a new owner’s name at the Land Office. It is a very important step and should be taken care of thoroughly.
There are many rules and regulations that need to be abided by before the transfer of ownership takes place. A good real estate lawyer in Thailand should help you with this step.
First of all, the Land Department must be notified (with 30 days notice) about the upcoming transfer. This is done by presenting all relevant documents and payment of the transfer fee to the Land Department officer. Once all the paperwork is in order, and the payment is made, the Land Office will register the property under the buyer’s name and the new owner will have an official title deed.
Another requirement is that a Foreign Exchange Transaction Certificate (Thor Thor 3) needs to be issued to the foreign party as proof of their remittance of funds from outside the country into their bank account in Thailand for the purchase of a condominium unit. This is a government regulation and must be complied with to avoid any difficulties at the time of registration.
The registration of the transfer of ownership is normally performed by a Land Office officer and takes about one to two hours. It is a good idea to have a queue number at the Land Office and go with a real estate agent in Thailand so that all the documentation can be completed quickly.
Once all the paperwork is complete, present it to the Land Office officer and wait for a while until your turn comes up. The officer will check your paperwork and then ask you to pay for the transfer fees and stamp duty.
Usually, the transfer fees are 2% of the registered value of the land or the selling price whichever is higher and stamp duty is 1% of the municipal value of the property. This can be a significant amount, and it is always best to get a professional real estate lawyer to take care of the whole process for you!
The Land Department also requires a copy of the buyer’s passport before they can process the registration. This is so that they can verify if the buyer is a legal foreigner and has the required visas for Thailand.
In most cases, the buyer will need to be present at the Land Office with a Power of Attorney (Thor Thor 3) to sign off on the documents. This is very useful if the seller is abroad and will not be in Thailand for the duration of the transfer.
Some buyers may also choose to lease their property rather than buying it freehold. This will allow them to have their property registered in their name, but they must pay the transfer fees and taxes as well as a lease fee which is usually around 30% of the purchase price.