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Real Rights

Building on Reality: Lease + Superficies as a Legal Strategy in Thailand

In the wake of the 90-year lease myth being debunked, many foreign investors are now asking: what is a legally safe way to structure long-term property use in Thailand? The answer, while not a loophole, is a strategy fully grounded in Thai law, combining a 30-year lease of land with a registered right of superficies for buildings.

Usufruct gives the right to use and obtain limited control of another man's immovable propertyThailand Usufruct

USUFRUCT LAWS IN THAILAND

The right of usufruct transfers possession, use and enjoyment of an immovable property from the owner to the usufructuary. Usufruct can only be registered over properly titled immovable property and is established by agreement with the owner and registration at the local land office. The contract or memorandum for usufruct is the legal document that states and confirms the formal agreement between the owner and the usufructuary (the person granted the right of usufruct).

Superficies Agreement in Thailand

The right of superficies in Thailand legally separates ownership over the building and the land Icon document

The right of superficies is used when you build upon land you do not own. It creates the registered right to use the land and to own the structures you build upon the land without obtaining ownership rights over the land itself. A right of superficies may be established for up to 30 years, for the life of the landowner, or for the life of the superficiary. If registered for a fixed term, it is a transferable and inheritable interest in land.


Superficies contract document bilingual Thai-English

Right of Superficies in Thailand

A right of superficies is a real property right (attached to titled land) and separates ownership of structures above the land from the land itself. It must be registered and can only be created over titled land administrated by the Land Department.

Laws governing superficies are in the Civil and Commercial Code sections 1410 to 1416.

Superficies and Land Lease

The right of superficies can be registered separately or together with a land lease. It is often used when someone (e.g. a foreigner) leases land and builds a house. A superficies is a strong supporting right: if the lease ends (e.g. due to death), the superficies remains and can be inherited.

Registration

The right must be registered at the Land Department. The registration will be noted on the back of the title deed copy. A superficies attaches to the land and remains valid even if the land changes ownership.

Registration fees are 1.1% of the contract value (including 0.1% stamp duty). If granted without payment, fees may be under 100 baht.

Superficies with an Existing Building

If a building already exists, a superficies can usually only be registered after ownership of the structure is transferred and applicable fees are paid — unless the superficiary can prove they already own the building.

Read more:

Civil and Commercial Code Thailand

RIGHT OF SUPERFICIES

Logo Garuda

Section 1410. The owner of a piece of land may create a right of superficies in favour of another person by giving him the right to own, upon or under the land, buildings, structures or plantations.

Section 1411. Unless otherwise provided in the act creating it, the right of superficies is transferable and transmissible by way of inheritance.

Section 1412. A right of superficies may be created either for a period of time or for life of the owner of the land or the superficiary. If created for a period, Section 1403 paragraph 3 applies.

Section 1413. If no period has been fixed, the right may be terminated at any time with reasonable notice. If rent is paid, one year's notice or one year's rent is required.

Section 1414. If the superficiary fails to meet essential terms or doesn’t pay rent for two years, the right may be terminated.

Section 1415. The right of superficies is not extinguished by destruction of the buildings, even by force majeure.

Section 1416. Upon termination, the superficiary may remove structures if they restore the land. If the landowner offers to buy at market value, the superficiary must sell unless there's good reason not to.

มาตรา 1410 เจ้าของที่ดินอาจก่อให้เกิดสิทธิเหนือพื้นดินเป็นคุณแก่บุคคลอื่น โดยให้บุคคลนั้นมีสิทธิเป็นเจ้าของโรงเรือน สิ่งปลูกสร้างหรือสิ่งเพาะปลูก บนดินหรือใต้ดินนั้น

มาตรา 1411 ถ้ามิได้กำหนดไว้เป็นอย่างอื่นในนิติกรรมอันก่อให้เกิดสิทธิเหนือพื้นดินไซร้ ท่านว่าสิทธินั้นอาจโอนได้และรับมรดกกันได้

มาตรา 1412 สิทธิเหนือพื้นดินนั้นจะก่อให้เกิดโดยมีกำหนดเวลา หรือ ตลอดชีวิตเจ้าของที่ดิน หรือตลอดชีวิตผู้ทรงสิทธิเหนือพื้นดินนั้นก็ได้

มาตรา 1413 ถ้าสิทธิเหนือพื้นดินนั้นไม่มีกำหนดเวลาไซร้ ท่านว่าคู่กรณีฝ่ายใดจะบอกเลิกเสียในเวลาใดก็ได้ แต่ต้องบอกล่วงหน้าแก่อีกฝ่ายหนึ่งตามสมควร ถ้ามีค่าเช่าซึ่งจำต้องให้แก่กันไซร้ ท่านว่าต้องบอกล่วงหน้าปีหนึ่ง หรือให้ค่าเช่าปีหนึ่ง

มาตรา 1414 ถ้าผู้ทรงสิทธิเหนือพื้นดินละเลยไม่ปฏิบัติตามเงื่อนไขอันเป็นสารสำคัญ หรือไม่ชำระค่าเช่าสองปีติดกัน ท่านว่าคู่กรณีอีกฝ่ายหนึ่งจะบอกเลิกสิทธิเหนือพื้นดินก็ได้

มาตรา 1415 สิทธิเหนือพื้นดินไม่สิ้นไปโดยเหตุที่สิ่งปลูกสร้างสลายไป แม้เกิดจากเหตุสุดวิสัย

มาตรา 1416 เมื่อสิทธิเหนือพื้นดินสิ้นไป ผู้ทรงสิทธิมีสิทธิรื้อถอนสิ่งปลูกสร้างของตน และต้องทำให้ที่ดินกลับสู่สภาพเดิม ถ้าเจ้าของที่ดินประสงค์จะซื้อในราคาตลาด ผู้ทรงสิทธิปฏิเสธไม่ได้ เว้นแต่มีเหตุอันสมควร

The right of habitation concerns only the right to dwell in a house

HABITATION LAWS IN THAILAND

The grantee of the right of habitation does not pay rent to the grantor. If there is rental payment made, the matter becomes a tenancy. A right of habitation may be created for either a specific period of time or for the lifetime of the grantee. In case the rights are granted for a specific time period, the law states that such a period may not exceed 30 years; if a longer period is fixed, it shall be enforceable for only 30 years. The grant may be renewed for a period not exceeding 30 years from the time of renewal. Lastly, the right of habitation is not transferable by way of inheritance.

The right to use the real property of another without possessing it

SERVITUDE LAWS IN THAILAND

Right of servitude is governed by the sections 1387 to 1401 of the Thailand Civil and Commercial Code. Section 1387: 'An immovable property may be subjected to a servitude by virtue of which the owner of such property is bound, for the benefit of another immovable property, to suffer certain act affecting his property or to refrain from exercising certain rights inherent in his ownership'. A right of servitude usually involves two or more separate properties/ plots of land, one of which is burdened and the other benefited by the servitude. The burdened parcel is called the servient property and the benefited land parcel the dominant property.

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กฏหมายไทย isn’t simple

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