How useful is a limited liability company for a foreigner who wishes to buy land or purchase land?
This is one of the most popular methods employed by foreign investors who want to buy land or purchase property in Thailand. Although Thai law generally requires Thai nationals to own a majority interest in a company in order to legally purchase land or property, various legal documents and procedures can be used to provide greater protection for foreign minority shareholders.
I am an American who owns 100 per cent of a Thailand-registered company under the Amity Treaty. Am I able to use this Amity Treaty company to buy land or purchase property?
Unfortunately, an Amity Treaty company only allows Americans to transact in certain types of businesses. Under the Treaty, Americans can own a majority share in a Thai company but they are not granted the right to buy or purchase land in Thailand.
How many types of title deeds are available for private land ownership?
There are mainly three types of title deeds for private land ownership in Thailand. The best title deed for land ownership is the Chanot (Nor Sor 4), which must be registered at the Land Department in the province in which the land is located. Although it is possible for a land parcel to be commonly held by several individuals, only the person whose name is indicated on a Chanot has all the legal rights to that land. The deed can act as evidence of ownership, and it can be used to engage in legal acts upon that land as allowed by the law.
The second and third best title deeds are the Nor Sor 3 Gor and the Nor Sor 3. For Nor Sor 3 title deeds, the Land Department does not utilize official markers to designate land boundaries. As a result, these title deeds have less specific land demarcation than the Chanot.
Foreigners who intend to buy land should also be aware of the problematic “possessory right”. This land-ownership right is not substantiated by a title at the Land Department but it is shown using tax payments.