Real Estate Glossary :

Body Corporate:

A body corporate provides a legal framework in which unit owners or occupiers can enjoy common property together. Common property may include driveways, paths, stairs, passages, lifts, lobbies, common garden areas and other facilities set up for use by all members and occupiers of the units

Certificate of Lease:

A document that states that an agreement exists between the landlord and the tenant over the rights to use the land / apartment / condominium for residential purposes over a specific period of time. All leases over 3 years should be registered with the land office if they are to be legally recognized. Leases can be registered in Thailand for a maximum of 30 years.

Certificate of Title:

A document, which shows the following: Ownership details, dimensions of the land, details of any mortgages and encumbrances (outstanding charge/liability on a property).

Chanote:

The highest form of land title in Thailand. This is a Certificate of title to a piece of ground / land which has been surveyed usually by the office of the department of lands which offers irrefutable evidencing of the land area and land ownership. Land available for sale in most parts of Thailand will offer this form of title.

Civil and Commercial Code (CCC):

The Civil and Commercial Code governs most real estate transactions that take place in Thailand. Civil procedure is regulated by the Code of Civil Procedure, which postulates four main principles, including the requirement of trial in open court, the rule of natural justice, the paramount importance of compromise, and the hybrid system between the adversarial and the inquisitorial rules on examination of witnesses. This document is used by legal professionals in research and citations, etc.

Common Property:

An area, which is owned by all tenants of the development or estate.

ESCROW:

Very simply defined, an escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of a particular condition or event. Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until ALL of the instructions in the transaction have been followed. The escrow holder has the obligation to safeguard the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.

Freehold Title:

This type of title gives you ownership of land or apartment of condominium, which you can lease or sell at your own discretion. Membership of the Body Corporate is automatic with this type of real property.

Holding Deposit:

This is a deposit paid to the vendor - based on the goodwill of the buyer to go ahead with the purchase of a property. It may or may not be refundable at the Vendor's / buyers prior agreement.

Juristic Person:

The term used to describe a "Legal entity" or a body that is legally registered in Thailand such as a company.

Lease:

A document, which grants a person/s tenancy of a property. A specific period and terms and conditions will apply. Contact the Managing Agent for details.

Lessee:

A person (or legal entity) who leases a property.

Lessor:

The owner of a property who leases the property to another person (or legal entity).

Management Fees:

The fees to be paid by the owner representing their share in the cost of maintaining and servicing the common areas (i.e. security / gardening / pools / garbage collection / painting etc.) of an estate usually expressed on the basis of square meterage.

Nangsue Kammasit Hong-Chut :

The Condominium Unit Title Deed is evidence of ownership of a condominium unit. This document has similar importance to the Land Title Deed (Chanote). Administrative procedures relating to the registration and issuance of a Land Title Deed also apply to the registration and issuance of a Condominium Unit Title Deed.

Ngan:

Unit of measurement that is unique to Thailand, which equals 400 Sq.M. under the metric system

Nor Sor Sam Ghor:

The second tier down from Chanote can be considered "land exploration testimonial deeds" is the Nor Sor Sam Ghor. T his form of title is similar to Nor Sor Sam as mentioned below - with the exception that the land has been already marked or surveyed through aerial photography or comprises part of a larger area surveyed - but has not yet upgraded to Chanote.

Nor Sor Sam:

The third level of land title - although a more basic form or title ownership offers information about the land area in terms of size but has not been surveyed by the land department. Nor Sor Sam titles are for all intents and purposes land title deeds in as much as clear records of ownership is maintained by the department of land - and that they may be sold or leased.

In the case of the Nor. Sor. Sam. but not the more recently issued Nor. Sor. Sam. Kor. there is however a requirement that 30 days public notice is necessary before any change of status over the land can be registered.

Property Tax:

There are two kinds of property tax in Thailand, namely, house and land tax, and local development tax. House and land tax is imposed on the owners of a house, building, structure or land, which is rented or otherwise put to commercial use. The tax rate is 12.5 per cent of actual or assessed annual rental value of the property. Property Tax is like a Rates Tax in Western Countries to help the local community pay for the collection of refuse etc due to the high usage demand of commercial property.

A local development tax is imposed upon any person who either owns land or is in possession of land. The tax rates vary according to the appraised value of the property being determined by the local authorities. There is an allowance granted for land utilized for personal dwellings, the raising of livestock and the cultivation of crops by the owner. The extent of the allowance differs according to the location of the land.

You do not need to pay this tax if you are only using your home for non - commercial purposes.

Rai :

Unit of measurement that is unique to Thailand measuring 1,600 Sq. M. under the metric system

1 Acre = 2.5 Rai (approx.)

1 Hectare = 6.25 Rai (approx.)

Sor Kor Nung, Tor Bor Tor Hoc, and Tor Bor Tor Ha:

These so-called titles are not really negotiable instruments from a property investment perspective. They are essentially squatter's rights registered at the district office for a small fee. Unlike the Chanote and the Nor Sor Sam Kor, they cannot legally be sold, nor can you build on the land.

Tee Din:

Essentially means a piece of ground or land as expressed as "the ground" or "the land"

Thor Tor 3:

Is a certificate evidencing the remittance of foreign currency in to Thailand for the expressed purposes of buying property. The amounts for which the bank will issue a Thor Tor 3 certificate is US $ 5,000 or other foreign currency equivalent. Usually the amount representing the purchase price of the real estate should constitute the value of the Thor Tor 3 certificate or partial payment thereof.

Title Search:

Process to ensure ownership of a property.

Wah:

Unit of measurement that is unique to Thailand, which equals 4 Sq.M. under the metric system