Doing Business in Thailand

In the following section, we’ll review the differences between the three higher claims from the lowest to the highest.

The Certificate of Utilization, or Nor. Sor. Sam (NS-3).

The NS-3 is a certificate providing evidence of possession. The NS-3 shows that the owner has fulfilled certain conditions, particularly relating to occupation and utilization of the land, and has been granted the right to possess the land and use the benefit of the land as an owner, but these rights still have to be confirmed by the authorities.

Despite the fact that the right is not yet confirmed, the law recognizes the right of possession of the NS-3 holder and the NS-3 may be used as evidence toward proving possession in any disputes against other private individuals and against the State. It can also be freely transferred and juristic acts may be registered on it.

However, as the right of possession evidenced by a NS-3 is not yet confirmed, any transaction or legal acts registered on a NS-3 must be published for 30 days to allow third parties to oppose the transaction. NS-3 documents are kept at the local District Land Office. The main difference between an NS-3 and an NS-3K is that the NS-3 has been less accurately surveyed. Their boundaries were recorded in relation to the adjacent plots and survey errors in length of boundaries or total area of the plot are not unusual.

The map of a NS-3 is a floating map with no parcel points issued for a specific plot of land and not connected to other land plots. If the land evidenced by an NS-3 has no clear physical boundaries, then the limits have to be staked out and confirmed by the surrounding landowners. Buyers are always recommended to request an official survey of land boundaries before purchasing land evidenced by an NS-3.

The difference between the size recorded in the NS-3 and actual size of the land may vary up to 20%.

Certified Certificate of Use, Nor. Sor. Sam Kor. (NS-3K) (or Nor.Sor.Sam.Gor)

An NS-3K is also a certificate of possession.

Like an NS-3, this document evidences the holder’s right to possess the land and obtain benefit from the land as an owner.

In addition, the NS-3K also evidences that the holder’s rights have been confirmed and certified by the authorities. As the right of use is confirmed, legal acts or transactions concerning the land do not need to be published.

NS-3K claims have been more accurately surveyed than NS-3 and each plot of land is crossed referenced with a master survey of the area and a corresponding aerial photograph with points of reference on the map. Despite the fact that the NS3-K is more accurately surveyed, a geometrical survey is also recommended prior to any purchase.

Nor. Sor. See, Chanote (NS-4).

The NS-4 is the only true title deed that serves to evidence unrestricted ownership rights. Chanotes are issued by the Provincial Land Office and based upon a geometrically accurate survey of the land made by the Land Department geometer.

The exact boundaries are marked by concrete or metal plot markers and the map is charted in relation to a national survey grid with an overall land plot map. At the time of the geometrical survey, the presence of the surrounding landowners is required and they will be requested to sign a document attesting to the size and boundaries of the plot being measured.

The land map on a Chanote document is depicted with the measurements and a detailed drawing showing the round posts at each corner of the plot and also with a view of neighboring land plots or public roads.

Sor. Bor. Kor

The Sor. Bor. Kor. is an allotment of land issued by the Land Reformative Committee. While this land has been accurately surveyed (like a Chanote), it cannot be sold or leased and may only be transferred under last will and testament. There are those who would assert that the Sor. Bor. Kor are true title deeds like Chanotes. My understanding, however, is that they are a right of usufruct granted on a land.

Note: This post is an excerpt of Rene Philippe Dubout first book: “How to Purchase Real Estate Offshore Safely: The Case of Thailand” published in february 2009. Second edition to be published in October 2009 under the title “How to Safely Purchase Real Estate in Thailand”

About the Author:

The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”.

http//:www.renephilippe.com

© Copyrights 2009 – Rene Philippe Dubout – This article may be reprinted if information about the author, the websites, and the URLs remain intact.

Originally posted 2009-09-15 02:23:39.

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