Purchasing a property is a huge investment and it entails prudent actions from the buyer to ensure that the real estate to be acquired will not be a source of problems for him in the future.
A title search is one of those actions that the property buyer must undertake and the following are among the reasons why.
- Ownership – before making any commitment, paying the reservation fee or signing any agreement, the issue on ownership must be ascertained first as it is possible that the person or entity who is selling the property is not the actual owner of the property or has no legal representation to act accordingly.
- Registered Encumbrances – the buyer must be certain that the property in question is free from any attachments like loan, lien or mortgage.
- Property History – the buyer should know the history of the property like who are its previous owners and if the classification of the land is allowed to be sold to someone such as the buyer’s personality.
Apart from these, there can be instances in which the Land Department revokes a title due to some reasons and through a title search, the property buyer can avoid acquiring a property of which its title is about to be revoked.
If in case the buyer proceeds to purchase a property without doing a title search and later on the Land Department revokes the title of such property, the buyer will not get any form of compensation in return even if there is no error on his part when he made the purchase.
Digging into the history of the property, the title search will eventually uncover what type of claim the property actually has and these are the possibilities:
- Por Tor Bor 5, Bai Jong (NS-2) and Sor Kor 1 (SK-1)
These are claims on lands and cannot be leased or sold. However, such claim may eventually reach maturity in which issuing titles on these lands may be a possibility.
- Nor Sor Sam (NS-3), Nor Sor Sam Gor (NS-3K) and Chanote (NS-4)
Of all the types of land titles and or claims in Thailand, the Chanote is the most superior. However, the NS-3 and the NS-3K are also superior land documents which are either fully or partially documented by the Land Department.
Lands with these types of documents may be sold, mortgaged or leased.
- Or Chor 2
The Or Chor 2 is also known as the condominium title.
Thai Title Search Report
Law Firm in Thailand Chiang Mai produces well detailed title search reports that include but not limited to descriptions of the property, its dimensions, history, type and authenticity of title deed, background of the seller/developer among others.
And because Thai legal documents are written in Thai, we also provide accurate English translations of these documents.