Thailand - Land Tenure

Stock Market   Venture Capital      Personal Finance   Economy   Value Invest   Penny Stock   Capital Investing   

Traditionally, the king owned all the land, from which he made grants to nobles, officials, and other free subjects. If left uncultivated for three years, the land could be taken back by the crown, but otherwise it could be passed on to heirs or mortgaged or sold. At the same time, there was abundant unoccupied cultivable land that by tradition and custom could be cleared and used by a farmer, who after three years of continuous cultivation established informal rights. The concept of individual ownership of the land was introduced during the reign of King Chulalongkorn (Rama V, 1868-1910), and beginning in 1901 formal title could be acquired.

The titling of land in the mid-1980s was based on a land code promulgated in 1954. The 1954 code established eight hectares as the maximum permissible holding except where the owner could manage a larger holding by himself. This limitation was generally ignored, however, and was rescinded four years later. A title deed (chanod tidin) giving unrestricted ownership rights ordinarily was issued only after a cadastral survey. At least two prior steps were required before the prospective landholder could obtain a full title deed. Application was first made to occupy and cultivate a piece of unused land, and a temporary occupancy permit (bai chong--reserve license) that carried no title rights was received. After 75 percent of the land had been cultivated, the landholder could secure an exploitation testimonial (nor sor). This gave him the right to occupy the land permanently and to pass the property on to heirs in effect it was an assurance that a title deed eventually would be forthcoming. Transferring the land through sale, however, was extremely difficult, and the exploitation testimonial was not usually accepted by banks as collateral. In the case of squatters, a special occupancy permit (sor kor) could also be obtained, unless the land was in a permanent reserved forest or was intended for public use. Satisfactory development could then lead to the issuance of an exploitation testimonial and ultimately a full title deed.

The issuance of title deeds, which proceeded at a relatively slow pace in the early 1950s, quickened somewhat during the remainder of the decade. By 1960 the total number of title deeds for agricultural land had reached 1 million, although there were 3.4 million agricultural households (this total included an unknown number of tenants' households). The pressure for titles of various kinds increased during the 1960s and 1970s as the number of farm holdings expanded rapidly. In an effort to expedite the processing of title deeds, the Department of Land of the Ministry of Interior resorted in the 1970s to the use of aerial photography in lieu of land surveys.

In the 1980s, a substantial component of the nation's dominant smallholder group nevertheless lacked full title to the land it worked. By 1982 the total number of title deeds was 3.9 million. A 1976 estimate placed the proportion of farm holdings having formal title at about 60 percent. The lack of full title by the remaining 40 pe814 percent created not only a sense of insecurity for theออออออออ landholder but also presented a barrier to securing needed credit.

A major question in the mid-1980s concerned the legalization of farm holdings outside recognized areas for land acquisition. An unknown but substantial number of holdings had been established by squatters--many of them hill people--in the reserve forests, which, according to the central government, were not eligible for titling, although the de facto possession of such holdings was recognized by local authorities. Observers pointed out that in many cases of forest encroachment the occupied land was incorrectly classified and in fact was suitable for cultivation (some reclassification was reported in the late 1970s). It also appeared that in the drafting of the country's land laws there was an underlying assumption that agricultural land meant the lowlands in other words, the land in mountainous and hill areas was considered nonagricultural. Thus, a large part of the North was not even included in the land registration system, and the hill peoples of the region were therefore unable to acquire legal title to the land they used.

Data as of September 1987


Next Page    Prev Page    Index Page    

Other Links:  MarketSigns.com  Money 101  Bonds  IRS Procedures  IRS FAQ's  IRS Tax Info  Employer's Guide for Tax    
Countries  Libya  Macau  Madagascar  Maldives  Mauritania  Mauritius  Moldova  Mongolia  Nepal