House (structure) Ownership

[Alf Witt]

This is a general question, not specifically related to farangs as it can apply to anyone.

I understand that a structure (house or whatever) can be owned separately from the land it is built upon. If a house is owned by A on land that A has leased from B what happens upon the expiry of the lease? Does it become the property of B who owns the land? Does B have to pay any compensation to A and if so at what level? Does A continue to own the house although he has no access to it?

Apologies if this has been covered before, but I have been unable to find any info.

Edited March 15, 2007 by Alf Witt

[LoveDaBlues]

Here is my understanding but I suggest you talk to a Thai lawyer. "A" and "B" should come to an agreement BEFORE the lease expires (ex. "B" to purchase house from "A"). If they cannot come to an agreement then "A" has the following options: (1) walk away (2) remove the structure.

Your post suggests that A & B cannot come to an agreement to create another lease. This would be the normal route.

[Alf Witt]

Thanks, Love. (perhaps I should rephrase that !)

[chownah]

I suggest that the agreement for how this should be handled should be part of the lease.....A must remove or A can not remove, or if A does not remove then must pay x baht or B has first right to purchase etc. etc. etc....depending on what both parties find agreeable.

[Alf Witt]

OK, It is clear that certain terms can be drawn into the lease to cover this issue, but what I am really asking is what is the default position? Does A's ownership rights to the structure remain after his lease of the land on which it was built has expired. His legal title to occupy the land (for any purpose) has come to an end. If his car was parked on the land - simple -he can remove it. But what about a structure? After the expiry of the lease he has no access to do anything. Does the structure become the landowner's property by default? Can the land owner insist upon its removal etc.?

[johnnyk]

What happens to the house after a 30-yr lease expires seems to be a very gray area that has not been tested yet in the courts as 30-yr leases are fairly new. Supposedly the landlord cannot remove it or demolish it and some compensation should be paid.

555

Lawyers are already happily anticipating the work to come their way.

[MikeBond]

The website samuiforsale.com gives information regarding leaseholds

and includes the scenario of what happens to a building on land with

an expiring lease. Its well worth a read.