Sap ing Sith Act 2019 - new lease-like property ownership laws for foreigners

[ThomasThBKK]

This is coming into law october and gives us foreigners new rights, an article can be found here: https://www.tilleke.com/resources/thailand-–-new-type-transferable-right-use-immovable-property#targetText=Sap-Ing-Sith literally means,as specified under the Act.&targetText=Only the owner of the,Sith period is 30 years.

 

This basically is a lease which can be inherited, can be sold, and gives foreigners more power over their land. It's a shame they limited it to 30 years tho.

This seems also very useful to give us additional protection in the usually used land ownership structures. A better usufruct so to say.

 

I didn't see any other topic about it here, so feel free to discuss.

 

 

[DannyCarlton]

The current chanote system is technically not open to foreigners. No chanotes are issued to foreigners in Pattaya. I see nothing in the article that suggests that this will be available to foreigners.

[ThomasThBKK]

The current chanote system is technically not open to foreigners. No chanotes are issued to foreigners in Pattaya. I see nothing in the article that suggests that this will be available to foreigners.

A sap ing sith is a new form of certificate which does not fall under the land title and is thus open to foreigners.

Chanotes have never been issued to foreigners except for condos, the condo act opened this up.
Best compare this to the condo act, it's a new way to hold land rights, not limited to thais.

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[blackcab]

The problem is most Thai owners will not grant this right unless you are taking out a long term lease (such as a 30 year lease).

 

However if your wife purchased a property she might wish to grant you this right.

 

I think this right would be most useful to certain condo developers who only sell 30 year leases to their units and choose to never sell the freehold.

 

Using a sapping sith might persuade the purchasers to go leasehold rather than freehold. It's a bit of a fudge though - the real issue is the maximum 30 year limit for a residential lease. A 99 year maximum lease period would do very well for itself.

[DannyCarlton]

1 hour ago, ThomasThBKK said:

A sap ing sith is a new form of certificate which does not fall under the land title and is thus open to foreigners.

Chanotes have never been issued to foreigners except for condos, the condo act opened this up.
Best compare this to the condo act, it's a new way to hold land rights, not limited to thais.

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Sorry, complete brain fade by me, I meant ufustruct.

[ThomasThBKK]

5 minutes ago, DannyCarlton said:

Sorry, complete brain fade by me, I meant ufustruct.

Yeah true, they basically ignore the law there. But they do 30 year leases, so they will prolly also do 30 year sap ing siths. 

 

25 minutes ago, blackcab said:

The problem is most Thai owners will not grant this right unless you are taking out a long term lease (such as a 30 year lease).

 

However if your wife purchased a property she might wish to grant you this right.

 

I think this right would be most useful to certain condo developers who only sell 30 year leases to their units and choose to never sell the freehold.

 

Using a sapping sith might persuade the purchasers to go leasehold rather than freehold. It's a bit of a fudge though - the real issue is the maximum 30 year limit for a residential lease. A 99 year maximum lease period would do very well for itself.

 

It's a good option to secure your land you already "have" further, additonally on top of company structures etc., there's not much motivation to steal land if a this kind of contract is on it, as it's eassentially useless for the next 30 years.

 

And this - allows you to get a loan as it can be used as a collateral, that wasn't possible before without the land owners conduct.

as you said 99 years would def. be better, but there's a good chance that in 30 years it loses up further, i see it as a welcome addition and it's not anti foreigner like many other new laws.

[phantomfiddler]

I don,t think there is anything "new" here. This 30 year lease has been around for ever, as has the inability for any Farang to own land in his own name, unless he has Thai citizenship.

[Iem]

The problem is . having got hold of a place long term doesn't automatically give you the right to stay here long term . Visa problems are not improved by having a place here .

[bangkoklawyer24]

Definitely the opposite of "lease-like". The Tillecke article was written in February and is pretty much outdated now. #SapIngSith is nothing less than a revolution for Thailand real estate. Google it by yourself.

[Destiny1990]

7 hours ago, bangkoklawyer24 said:

Definitely the opposite of "lease-like". The Tillecke article was written in February and is pretty much outdated now. #SapIngSith is nothing less than a revolution for Thailand real estate. Google it by yourself.

I googled it and i can understand why you are sounding so upbeat as a lawyer trying to sell this SapingSith to naive buyers labeling it as revolutionary !

[ThomasThBKK]

1 hour ago, Destiny1990 said:

I googled it and i can understand why you are sounding so upbeat as a lawyer trying to sell this SapingSith to naive buyers labeling it as revolutionary !

Got anything constructive to add? 

 

It is indeed much bette system, especially as it allows selling, inheriting, and getting loans. 

[Destiny1990]

37 minutes ago, ThomasThBKK said:

Got anything constructive to add? 

 

It is indeed much bette system, especially as it allows selling, inheriting, and getting loans. 

Its still an poorly non extendable 30 years lease which is unworkable for properties. 

[ThomasThBKK]

Its still an poorly non extendable 30 years lease which is unworkable for properties. 

Already mentioned x times.

Still way better than before, especially combined with other things.

Especially for commercial businesses.

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