Property investments in Por Bor Tor 5 – not a mission impossible
The Por.Bor.Tor.5 document is issued on demand for a specific plot of land in Thailand. It certifies (together with the official pink tax receipt – Aor.Bor.Tor) that the beneficiary occupied the land, a tax number has been issued for it and the beneficiary pays taxes for the utilization of the land. The claim document has no Garuda emblem and is issued without any governmental survey. The beneficiary, he might be called caretaker, can’t sell or lease out the land.
Adverse possession under the squatter’s rights provision of the Civil & Commercial Code is not possible. The plot is neither registered at the land office nor can a building permit be granted or a blue house book be issued. The legal succession, if the beneficiary passes away, depends on the specific circumstances. However, the beneficiary has the option to apply for a Sor.Kor.1 and later for a land title deed (Chanote). Therefore, the unimpressive claim document can be the source of great richness.
Por Bor Tor 5 as a springboard for future land ownership
The law firm assists clients
- to apply for a Por.Bor.Tor.5 certificate, based on occupancy, tax payments, and certain tasks to take care of the land,
- to defend the Por Bor Tor 5 beneficiary against a loss of his possessory rights to intruders and violators,
- to accomplish a PBT5 due diligence with respect to the likelihood that the land will be upgraded and land ownership transferred to the caretaker under that claim document,
- to establish a legal structure which allows foreigners to obtain PBT5 status,
- to transfer or acquire Por.Bor.Tor.5 (which does not mean to transfer the land) including the land possession, the tax number and the tax payment obligations,
- to review existing Por.Bor.Tor.5 investment structures whether they are properly designed and maintained to facilitate a later upgrade for the benefit of the investor.
- to obtain upgraded land rights if the claims mature and the Land Department eventually grants a real title to land, based on the claim certificate.
Por.Bor.Tor.5 rights provide a high risk and high reward instrument to invest in untouched real estate offside of areas of intensive tourism and ecological devastation. However, it requires a careful preparation and a prudential procedural method to secure your piece of paradise.
Times are sooner or later changing in Thailand. An upgrade, which might not be likely today or even not been governmental practice for some years, might happen earlier than expected. Such investment is certainly not appropriate for all and everyone. Therefore, the law firm places great importance on ensuring that the client is aware of all facts and legal aspects linked to such investment.
Por Bor Tor Ha (Por Bor Tor 5) is just one of the land documents in Thailand. Others are Nor Sor Si (Nor Sor 4) (Chanote), Nor Sor Sam Gor (Nor Sor 3 Gor), Nor Sor Sam Khor (Nor Sor 3 Khor), Nor Sor Sam Khor (Nor Sor 3 Khor), Nor Sor Sam (Nor Sor 3), Nor Sor Song (Nor Sor 2), Sor Kor Neung (Sor Kor 1), Nor Sor Ha (Nor Sor 5), Sor Por Gor, Sor Tor Gor, Nor Kor Sam (Nor Kor 3) and Gor Sor Nor Ha (Gor Sor Nor 5). The law firm advises on property developments and foreign direct investments in Thai real estate.