Usufruct Agreement

A usufruct is an agreement through which one can obtain the rights of possessing, managing, using, and enjoying the benefits of a property. You have the same rights to usage as an owner but without buying the land. A usufruct is for your lifetime so gives peace of mind for house owners.

Use of Usufructs

Although the law does not prevent Foreigners from being able to apply to register a usufruct on a land, however, this is still subject to the discretion of the Land Officer.

The person who enters into a contractual agreement with the owner for this right is called the “usufructuary”. A usufruct will be registered in a similar manner to a lease of up to 30 years or for the life of the usufructuary.

Once registered, it will have effects as a servitude on the title. The owner of the land cannot sell or transfer the land until the servitude has been terminated.

The usufructuary must also keep the property intact and returned in the same position that it was when the usufruct was granted.

The usufructuary is responsible for the expenses for the management of the property, paying taxes and duties, and being responsible for interests payable on debts charged to it.

If required by the owner, the usufructuary is bound to insure the property against loss for the benefit of the owner. They must pay the insurance premiums for the duration of their usufruct and your right is also registered on the title deed.

A usufruct interest expires upon the death of the holder of the usufruct and therefore cannot be inherited.

What You Need To Know

Prior To Registration Of The Usufruct

Want To Transfer Usufruct?

Third Party Transfer

As stated in the Civil and Commercial Code of section 1422, the beneficiary can transfer his rights to a third party. In fact, the usufructuary can get into a lease of 30 years with the third party. Nevertheless, the usufruct grantor will still claim for the damages that are induced by the third party.

Transfer through Inheritance

The usufructuary has the right to transfer the land via inheritance although the decision is ultimately depending on the Land Department officials.

Documents Required for Drafting and Registration the Agreement

  • A copy of House Registration book and a Thai identification card of both the parties
  • If a foreigner, then provide a copy of the passport
  • A copy of the title deeds
  • Originals of the aforesaid must be presented during registration

Procedure of Registration at the Land Department

  • All the original documents mentioned in the “Documents Required for Drafting and Registration the Agreement” section should be submitted.
  • Upon the officer’s call, you will need to sign papers.
  • Registering a usufruct for free will require you to pay a minimum Government fee of around 100 baht each application.
  • All the documents will be verified by the officials.
  • Ensure that at the back of the Title Deed the Usufructuary’s name is mentioned in Thai along with the length of the agreement, the owner’s name and the date of registration.

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