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ResourcesThailand Real Estate & Property LawTitleThailand Real Estate Title: The Nor Sor 3

Thailand Real Estate Title: The Nor Sor 3

Transcript of the above video:

As the title of this video suggests, we are discussing Thai Property Title or Thai Real Estate Title and we are discussing it in the context of the Nor Sor 3. 

Now it should be understood this is the Nor Sor number 3 and it is different from the Nor Sor 3 Gor and the reason for this is a Nor Sor 3 property is not going to have yet to be measured so the metes and bounds of the property have yet to be delineated.  This makes a big difference because a Nor Sor 3 Gor which has been measured, one can then petition to have that type of property title converted over into a Chanote title which is Freehold Title here in Thailand. A Nor Sor 3 that is not the case. It has yet to be measured so the boundaries are not delineated and for that reason it is not possible to directly petition for a Chanote or Freehold title. One has to deal with the boundaries first and then convert into Nor Sor 3 Gor classification and then convert over to a Chanote if that is the ultimate goal. 

Long story short is this is a type of property title. There is to use associated with this type of property title but it is not the same and it is substantially dissimilar especially from Freehold title as well as the Nor Sor 3 Gor which delineates boundaries because is not a hundred percent clear exactly where one's property ends and another person's property begins. So a Nor Sor 3 that made abut for example a Chanote title, you may know one boundary for certain just by dint of the fact that you can use sort of deductive reasoning in knowing what the boundary of that Chanote title is, but if the other three boundaries are un-delineated well then you do not necessarily have any idea of exactly where those boundaries end.  If you don't know where the boundaries end you can't get a Nor Sor 3 Gor and then go ahead and get Freehold title which is sort of the ultimate prize for anyone owning property in Thailand because you need that in order to be able to fully enjoy one's property, fully encumber the property if you need to, as well as fully alienate the property. 

So the Nor Sor 3 is out there. Something I see foreigners get into trouble with is they will try to buy or lease property in one of these “lower classifications”, one of these sort of less delineated boundary classifications and a lot of the instruments associated with for example leasing such property or mortgaging such property may not be overly useful when compared to for example a Chanote title wherein full encumbrance and full benefits to the property owner can be conferred or alienated or sold off. For this reason, due diligence is really important if you are looking at getting into Thai Real Estate. Even if it is someone who is looking to purchase property with one's spouse, conducting due diligence is a really good idea so that you understand exactly what your property rights are and in certain cases if or where the property lines are delineated.