To invest in land by trading the title document, Nor Sor 3, also known as “Black Garuda”, investors must be a risk taker. Nevertheless, investors could be in for huge benefits gain if everything goes as planned. A good plan is to obtain a land right document in terms of the title deed to be issued by the department of land before selling for profit. Having a good exit strategy is always crucial from an investment perspective.
Land with Nor Sor 3 document is meant for the owner to utilise and make a living out of the land. Hence,the land boundary and the land map can be unclear. To improve accuracy, the owner or representative is required to point out, as well as references to neighboring land. The risks that arise with the Nor Sor 3 land at the investment level are:
- Documents may not be listed in the land department’s directory.
- The exact land location may not match the tenure.
- Part of the land may be missing, therefore inaccurate to the land document.
These issues serve as a checklist for investors to rely and review with the potential seller when looking at any purchase. This helps fasten and smoothen the decision making process. Any question arising from the checklist can then be followed with the seller. This also gives the investor a broad picture if the deal is worth carrying out when taking into account all the problems they may face and time consumption.
- To certify the land documents at the land department along with the land plot that appears in the aerial photographic map, Nor Sor 3 can only be issued if the origin of the aerial photographic map is provided.
- Check if the land survey has ever been conducted in the past to indicate actual size of the land. If not, then assign a request for a survey. This is because investors want to know the actual size of the land to calculate the payment which calculated price per rai.
- Check with the local maintenance tax system or new property tax at local authorities such as the district municipality office to find out if the property is in the tax system. Is there a tax payment in the past ? Any overdue amount ? Who is the owner by law ?
- Check out the forest area which can be done by ourselves first. Once the location of the land is pointed in google maps, we can use that coordinate position to search the forest zone on the DSI map. If the land is not located in a forest area, title deeds can be issued. However, if the land is in a forest area, more in-depth examination procedure has to be carried out before applying for title deed.
- Come up with a plan after acquiring ownership of land. As mentioned before that land under Nor Sor 3 is meant for agriculture, so those who own it must make use of the land. If the land is abandoned or left unused, higher property tax rate will have to be paid by the owner. More importantly, the owner can lose possession of the land if other people come into the land and after using it within a year. This problem happened on many occasions, therefore, investors must be careful.
When all 5 results are satisfactory, it is time to negotiate the price for the most satisfactory price. It is the nature of the investor to buy at least 20% below the market price. After the ideal price is negotiated, investors should start binding on the deposit agreement which must be paid after the appointment of a land survey date is clearly determined. Investors also have to ensure that the terms of withdrawal from an obligation is present in the agreement, should they decide to exit the contract without any claim legal action which could be made against them