Last updated on August 23, 2024
Do note that this article refers to the old name of the tax document called “Por Bor Tor 5″. We made a new article about the change of name in 2019. These lands belonging to the state are”Ratchaphatsadu land” and now often referred as “Por Dor Som 3”
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The titles called “Por Bor Tor 5 in Thailand” is overseen by the Subdistrict Administrative Organization (SAO) in Thailand. It is not under the Department of Lands or “Land Department” Office. The documents related Por Bor Tor are some kind of tax receipts showing the taxpayers name, . A Por Bor Tor 5 in Thailand is essentially a right of possession. The real owner is the government but the people can use this land for farm purposes.
Do note that researching Por Bor Tor 5 could be complicated. Due, to the absence of computerization locating the landowner may involve spending a day sifting through books at the SAO office to find information about a particular land.
Dealing with Agreements and Tax Obligations
Contracts related to Por Bor Tor 5 in Thailand are often informal and might be endorsed by the village headman (known as Poo Yan Baan) for some semblance of authority. They are often some “templates” from the land department, sometimes without proper witnesses, or without dates, clear indications of the land and what should protect a buyer or seller.
Annual taxes on land are paid regularly with tax documents being issued by either the SAO or Amphur. These records are meticulously maintained in books. Confirming ownership entails a thorough manual investigation. Given the prevalence of misconceptions surrounding Por Bor Tor 5 I aim to shed light on its aspects. The value of the land is normally much lower than a “chanotte” title deed.
Unpacking Por Bor Tor 5 in Thailand (PBT 5)
Por Bor Tor 5 in Thailand (PBT 5) also referred to as ” maintenance tax” or colloquially as the “grass tax ” serves as an aspect, within this context. The PBT 5 certification indicates that the land occupier has settled the required tax, with the government authority, which’s the SAO. The SAO oversees the collection and documentation of tax payments. Issues the PBT 5 certification as validation.
Difference Between PBT 5 and Land Title Documents
It’s important to note that Por Bor Tor 5 in Thailand is not a land title document and is not issued by the Department of Lands. The SAO lacks the jurisdiction to confirm land ownership. While one can apply for a Sor Kor 1 document, which may eventually lead to a title deed there’s no assurance of approval. It is not an “ownership” but rather a right to “possess” the land. The government is the ultimate owner of this property.
Important Factors for Land Transactions
To prevent fraud in land transactions it’s crucial to verify ownership of these “possessory rights” through either the village headman (Poo Yai Baan) or the local authority (SAO). The origin of PBT 5 dates back decades when there was farmland available for the growing population. This situation led individuals to occupy land or clear forests for agriculture. By paying the maintenance tax they could acquire a PBT 5 certification as proof of land occupation.
Features of Por Bor Tor 5 in Thailand
One feature of PBT 5 designated land is its lack of a title deed, from the Department of Lands confirming possession or ownership.
PBT 5 land can be. Sold,. Unlike transactions involving titled land this process only transfers the right to use the land, not ownership. The government maintains ownership.
The transfer of rights involves updating the maintenance taxpayers name from the seller to the buyer, at the SAO. An SAO officer will act as a witness during this process. No charges are levied for the transfer.
Risks Associated with Buying PBT 5 Land
As PBT 5 land lacks certification from the Department of Lands there are risks involved. The land could already be occupied by another party. Classified as land, reserved forest, mangrove forest, national park or military zone. The holder of a PBT 5 document has no authority to challenge any government reclamation of that land. These risks need to be acknowledged.
However consulting with the Forest Department and military authorities can help determine if the land is categorized as forest or military territory. Checking with the Land Department can establish if someone else holds ownership rights, over that land. Key details needed for verification include map coordinates and survey numbers listed on the PBT 5 document.
Discrepancies, in PBT 5 Land Size
There is a possibility that the size of the purchased PBT 5 land may not match the information provided in the document. The declared area in Por Bor Tor 5 in Thailand is based on the occupants approximation not on surveying according to the Department of Lands mapping guidelines. If a survey is conducted later for the issuance of a land title document it could reveal an area than what is stated in PBT 5.
Is it Possible to Convert PBT 5 Land into Title Deeds?
PBT 5 landowners can apply for title deeds when instructed by the government to convert their documents. The PBT 5 documentation will be used as supporting evidence for obtaining title deeds long as the land is not situated within areas, military zones or privately owned properties.
Buyers have the option to ask sellers to initiate the process of obtaining land title deeds under the Land Code Act to confirm whether title deeds can indeed be granted when required by authorities. This verification can be done at the Land Office overseeing the location of the land.
Building on PBT 5 Land
Occupants are allowed to construct commercial structures on Por Bor Tor 5 in Thailand after obtaining construction approval, from SAO (Sub district Administrative Organization).
With the approval of the construction permit, from SAO they can then request a house number from the village headman. Upon receiving the house number they are eligible to apply for household registration at the district office. Officially registered they can proceed with applications for electricity and telephone services.
It is possible to mortgage structures and buildings on PBT 5 land; however the mortgagor must also be the owner of these buildings/structures as per mortgage laws. The owner of the property being mortgaged must include any improvements attached to the land. It is worth noting that banks typically do not accept mortgages on PBT 5 land and such land cannot be foreclosed and sold at auction like land with a Chanotte title.
Supreme Court Decisions related to Por Bor Tor 5 in Thailand
In terms of Supreme Court rulings on PBT 5 land Supreme Court Ruling 15551/2010 stated that buying and selling land represents a transfer of possession rights than ownership. The transaction between buyer and seller concludes upon possession transfer without any obligation, for surveying or refunding if boundary issues arise.
Supreme Court Ruling 7740/2012 reiterated that ownership rights do not come with PBT 5 land; instead only possession rights are granted. Title deeds are only granted for properties located in community areas not for farmlands that are not used for long term agriculture. If the land has been properly surveyed and neighboring lands have title deeds or Nor Sor 3 documents then title deeds can be obtained. To determine if your land is situated in an area, for title deeds you can inquire at the Land Office.
Please be aware that good information regarding Por Bor Tor 5 in Thailand is scarce so please refrain from using the information above without our permission.
- Department of Fisheries, explanation of Por Bor Tor 5. (In Thai language)
Sebastien H. Brousseau, LL.B., B.Sc.\nFounder and Managing Partner at ThaiLawOnline. A Canadian lawyer with over 30 years of practice, Mr. Brousseau has been living in Thailand since 2004. He has successfully served 4,500+ client matters for expats and Thais. His areas of focus include Prenuptial Agreements, Family Law, Property Law, Corporate Law, Litigation, Criminal Defense, and Immigration.\n\nAdmitted to the Bar of Quebec and the International Bar Association, Mr. Brousseau also holds degrees in Criminology and Political Science. He was the founder of Isaan Lawyers (Managing Director 2007-2022) and one of the first foreign lawyers in Isaan. He has written more than 500 legal articles in his career. Our team has 20 years in practice, focus on expat work.\n\nAll advice and representation are delivered through licensed members of the Lawyers Council of Thailand.