Usufructs And Superficies

[Alf Witt]

Does anyone know if either of these instruments can be registered in the name of a non-Thai company?

If so is there a time limit on its "life"?

Has anyone done this?

[ThaiItAgain]

Does anyone know if either of these instruments can be registered in the name of a non-Thai company?

If so is there a time limit on its "life"?

Has anyone done this?

No, I don't know... but would be really interested to find out. There is an article on usufructs in Stickman... they can last for the life of an individual. (Somehow I doubt that this would apply to companies; but that's just 'gut feel'.)

More info / insights on this would be much appreciated!!

Cliff

[Sunbelt Asia]

Does anyone know if either of these instruments can be registered in the name of a non-Thai company?

If so is there a time limit on its "life"?

Has anyone done this?

No, I don't know... but would be really interested to find out. There is an article on usufructs in Stickman... they can last for the life of an individual. (Somehow I doubt that this would apply to companies; but that's just 'gut feel'.)

More info / insights on this would be much appreciated!!

Cliff

Companies are limited to 30 years with a lifetime usufruct.

www.sunbeltasiagroup.com

[Alf Witt]

Companies are limited to 30 years with a lifetime usufruct.

www.sunbeltasiagroup.com

Thanks

[SoiSong]

So............I read that Usa...is very similar to the lease and both are good for 30 years...Asking to K. Sunbelt which do you recommend for holding land on whcih you have a house. Also, if I visit you office in Bangkok do you have som einfo sheets and guides to home buying in Thailand. I have visitied numerous Lawyers all saying a lease if the way to go, all buit 1 that is a I think is politically smart to not reveal that office. NOT SUNBELT. I'm actually shopping for a one stop office to handle my legal issues and get advice on receiving property as a new resident. I have an visa OA for some time! I suppose others would like the samne info... I'll be at your offic when the streed dry from Songkran.

[Sunbelt Asia]

So............I read that Usa...is very similar to the lease and both are good for 30 years...Asking to K. Sunbelt which do you recommend for holding land on whcih you have a house. Also, if I visit you office in Bangkok do you have som einfo sheets and guides to home buying in Thailand. I have visitied numerous Lawyers all saying a lease if the way to go, all buit 1 that is a I think is politically smart to not reveal that office. NOT SUNBELT. I'm actually shopping for a one stop office to handle my legal issues and get advice on receiving property as a new resident. I have an visa OA for some time! I suppose others would like the samne info... I'll be at your offic when the streed dry from Songkran.

Contrary to popular advice, you as a foreigner or a foreign company cannot own any direct interest in land with only a few exceptions which are

1. You invest 40 million Baht in Thailand.

2. You are a major shareholder/ MD of a BOI company and the company purchases a residence for the MD to reside in.

3. You buy a condo with less than 49% of the owners being foreigners.

A number of foreigners avoid the restrictions by either have servitude on the land or leasing the land over the long term. However, no matter how broad the rights the tenant has to the land during the lease period or the foreigner rights in regards to the servitude, the foreigner does not own any interest in the land.

Here are the options...

1. You can have property manager rights with a lifetime usufruct (registered as the property manager on the title deed) and own the building structure in your name.

The usufruct is only 30 years if it’s a corporation or the Land Dept Officer doesn't know the laws. However after fighting with the officer, we have been fortunate to get the lifetime servitude registered on the title deed, in all cases till now.

2. You can be the registered mortgage holder on the land and own the building. Again some Land officers will not allow this. Nothing in the Civil Commercial Code or Land Act law states that a foreigner cannot be a registered mortgage holder but some land departments will not allow it. Other Departments will state of course it’s allowed. TIT. You also can register a usufruct on the land as well if you are a mortgage holder.

3. You can register a lifetime superficies on the land and build the house (which you can own in your name) or register a lifetime right of habitation over the house and land.

4. You can do a thirty year lease. If the owner dies or sells the land, however the contract is no longer binding. For this reason, we prefer the lifetime usufruct or superficies or even the right of habitation over the idea of a 30 year lease with option of another 30 years.

We can put clauses in the 30 year lease that will cover this no extension issue but this provision has never been tested in the courts. You can also have a pro-rata refund if the 30 year lease is not approved. The leaseholder would get back 1/2 of the investment if the extension is not granted after 30 years. Again this has not been tested in the courts. The only thing you can be sure with a 30 year lease is you will get 30 years. Anything more is a bonus.

www.sunbeltasiagroup.com

[JimGant]

Sunbelt wrote:

You can do a thirty year lease. If the owner dies or sells the land, however the contract is no longer binding.

I was under the impression that the lessee on a 30-year lease, registered with the Land Office, is guaranteed (as much as anything is 'guaranteed' in Thailand) for 30 years, regardless if ownership changes for any reason. This seems to square with a later quotation in the same posting:

The only thing you can be sure with a 30 year lease is you will get 30 years. Anything more is a bonus.

Comment?

[A_Traveller]

A formal lease does not expire on transfer of the real property, the new owner must maintain the conditions of the existing lease. Of course, in the real world that may not stop a new owner using 'techniques' to get an existing lease holder to quit.

Regards

[Sunbelt Asia]

Sunbelt wrote:

You can do a thirty year lease. If the owner dies or sells the land, however the contract is no longer binding.

I was under the impression that the lessee on a 30-year lease, registered with the Land Office, is guaranteed (as much as anything is 'guaranteed' in Thailand) for 30 years, regardless if ownership changes for any reason. This seems to square with a later quotation in the same posting:

The only thing you can be sure with a 30 year lease is you will get 30 years. Anything more is a bonus.

Comment?

Sorry was talking ablout the option of 30 years.

You will get 30 years if the lease is registered but you may or may not get the option of the additional 30 years if the land is sold or transferred. The new owner is not bound to honor the contract for the option of 30 years, only the existing lease.

www.sunbeltasiagroup.com