Glossary

Thai legal terms in plain words.

Chanote (Nor Sor 4 Jor)

The strongest land document in Thailand: full ownership with precise surveyed boundaries. Any right (lease, mortgage, usufruct) can be registered on it. Prefer buying land that has a Chanote.

Nor Sor 3 / 3 Gor

Confirmed-possession certificates (weaker than a Chanote). Nor Sor 3 Gor has aerial-survey boundaries; plain Nor Sor 3 has none. Both can be sold and mortgaged; many can later be upgraded to a Chanote.

Freehold

Outright ownership with no time limit. For a foreigner it is realistically available only on a condominium unit (within the 49% quota), not on land.

Leasehold

A long registered lease (up to 30 years). A common way for a foreigner to use land or a villa. The 30+30+30 renewal options do not bind a new owner of the land or the lessor's heirs, which must be checked.

49% foreign quota

In any one condominium, foreigners together may own at most 49% of the total floor area of all units. Before buying, check whether the building has free quota.

FET / Tor.Tor.3

A bank's Foreign Exchange Transaction form. To register a unit to a foreigner, the funds must come from abroad in foreign currency and be converted into baht. Without it the Land Office will not register a foreign owner.

Usufruct

A registrable right to use someone else's property and take its income for life (or up to 30 years). Often used to protect a foreign spouse. It is not inheritable.

Superficies

The right to own a building on land belonging to another. A lawful way for a foreigner to own a house while a Thai owns the land.

Appraised value

The official value the Treasury Department sets for calculating transfer taxes and fees. Often below the market price; taxes are usually computed on the higher of the two.

Specific Business Tax (SBT)

A 3.3% tax on selling property within 5 years of acquisition (unless exempt). When SBT does not apply, a 0.5% stamp duty is paid instead.

Withholding tax

Income tax withheld at the Land Office on registration. For an individual it is computed on the appraised value with a deduction for years of ownership; for a company it is a flat percentage.

Sinking fund

A one-off contribution a condo buyer pays into the fund for major repairs of the common property, separate from the monthly maintenance fee.

Condominium juristic person

The body that manages a building's common property. Every unit owner is automatically a member and pays the common fees. It issues the debt-free certificate needed at sale.

Nominee holding

Using a Thai stand-in (or a Thai company with nominee shareholders) to hold land for a foreigner. This is unlawful (Foreign Business Act) and risks criminal liability and loss of the property.

Due diligence

The pre-purchase check: the title and its validity, encumbrances and debts, permits and zoning, the developer's record, and for a condo the available foreign quota. Done before any money is paid.

This information is for reference only and is not legal advice. Consult a licensed lawyer before any transaction.