Why nobody talks about Sap Ing Sith rights and foreigners able to own properties? SUPER COOL

[ThaiLawOnline]

This is interesting for ALL FOREIGNERS in Thailand.

 

There is a new way to own a property in Thailand for foreigners and I learned that it was registered in Isaan last week for the first time. Let me introduce you to “Sap-Ing-Sith”

 

The best English article is here:

https://franklegaltax.com/sap-ing-sith-thailands-new-property-right-game-changer/

 

Not sure if I can post links but admins, this is SUPER IMPORTANT to know. Only few people posted about it in English.

 

I believe this would be very good for a foreigner that it not married to a Thai, but might have a Thai partner. He makes a loan to his partner, his partner buys the property and the foreigner register this right for 20,000 baht at the land department. I learned that amount using searches with AI.

 

Then, if the couple breaks, he can sell his balance of his rights, or transfer to a third party, or even get a mortgage but I am not sure banks will agree to that quickly.

 

For more info in Thai :

http://web.krisdika.go.th/pdfPage.jsp?type=act&actCode=13787

 

That is an official link and the Supreme Court I think.

 

I was one of the first foreign lawyers talking about Usufruct in 2008 in an article called “everything you want to know about Usufruct in Thailand”. It was posted here, on Thaivisa.

 

This is a new way, different from leases, setting up a company, register a Usufruct or superficies, huge potential.

 

Sebastien.

 

#Thailaw #Propertyrights #ownershipinThailand

[couchpotato]

Another complicated way, and also its not new---been around for 3-4 years already.

[ThaiLawOnline]

 

First, it is not well known and the first that I know registered in Isaan was last week. I remember to register some of the first usufructs in MANY provinces and districts when the land department didn't know what to do.

 

Second, it was created in 2019m which is 4 years but with COVID, we lost 2 years with nothing happening more or less.

 

Complicated?  Here my small understanding and I might be wrong:

 

The Sap-Ing-Sith (SIS) is a new type of property right in Thailand that was created by the Sap-Ing-Sith Act B.E. 2562 (2019). The SIS gives its holder the right to use an immovable property for a specified period of time, up to 30 years. The SIS can be registered on land with a valid Chanote (land title deed), buildings placed on land plots held under a valid Chanote and condominium units as defined in the Condominium Act.

 

The SIS holder has the right to use the property for any lawful purpose, including residential, commercial, or industrial use. The SIS holder also has the right to sub-lease the property, mortgage it, or use it as security for a loan. However, the SIS holder does not have the right to sell the property or to transfer the SIS to another person.

 

The SIS holder is responsible for paying taxes and other charges on the property, and is also liable for any damage to the property. The SIS holder must return the property to the owner in good condition at the end of the SIS period, unless otherwise agreed.

The SIS is a new and innovative property right that offers a number of advantages over traditional leasehold arrangements. The SIS gives its holder greater rights and flexibility, and can be a more attractive option for investors and businesses.

Here are some of the key differences between the SIS and a traditional leasehold:

• The SIS is a registered property right, while a leasehold is not. This means that the SIS is more secure and can be used as collateral for loans.
• The SIS can be for a longer period of time than a leasehold. The maximum period for a leasehold is 30 years, while the maximum period for a SIS is 99 years.
• The SIS holder has more rights than a leasehold tenant. The SIS holder can sub-lease the property, mortgage it, or use it as security for a loan. A leasehold tenant cannot do any of these things without the landlord's permission.

Overall, the SIS is a more attractive option for investors and businesses than a traditional leasehold. The SIS offers greater rights, flexibility, and security, and can be used as collateral for loans.

 

Is this complicated? It is like a lease, but you can sell it, transfer it, you are the owner for 30 years, you can even mortgage it (but I doubt Thai banks will allow it) and solved some problems of a lease or usufruct, for a registration of 20,000 baht.

 

I do think it has value and i do not think it is complex. i posted for people to know, same as I posted about usufruct in 2008. Same as I posted for Thai PINK ID many years ago when people did not know how to do it, or I explain my own permanent residency adventure WHICH IS COMPLEX. But not that. It seems easier than a lease with some real benefits, especially for anyone over 60 years old I think.

 

Prove me wrong, tell me it why it is bad. Why it is complex. I used to make lease with an option to renew and a declaration of intention to renew which has a retroactive effect (168 TCCC) with an addendum not to show the land department for additional rights that we didnlt want the authorities to know but we believe are legal. SO A LEASE, a PROPER one, is VERY DIFFICULT and complex. A usufruct is simple, but not transmissible. Cheap and could be valid for lifetime. I see a value to sublease or sell rights with SIS. Personal opinion of someone who worked with Thai lawyers and Thai properties for 16 years. But anyone can disagree....

 

[Peterw42]

Its not exactly new (2019), and the linked article says the following.

 

"The Sap-Ing-Sith is not a game-changer, as the maximum period is still 30 years and thus the same duration as a normal leasehold. And most other rights that the Sap-Ing-Sith grants could also be granted with a standard leasehold agreement."

 

It doesn't give property ownership, (as per the thread title), it gives ongoing usage , the same as a lease or usufruct, You cant sell the property.

[Pink Mist]

Is this not just a type of leasehold?

[stratocaster]

Logic says that if this has been around since 2019 and is an absolute game changer regarding property use/ownership there would be 150,000 posts discussing it on aseannow.

[StayinThailand2much]

9 hours ago, ThaiLawOnline said:

I believe this would be very good for a foreigner that it not married to a Thai, but might have a Thai partner. He makes a loan to his partner, his partner buys the property and the foreigner register this right for 20,000 baht at the land department. I learned that amount using searches with AI.

QUOTE:

"Rights of the Property-owner:

• To transfer the ownership;
• Use the property as security for a mortgage (...)"

 

And the point of such a "transfer" is?

Why not just give the money to the Thai partner? Both are happy; the Thai partner, because she got her hands on a lot of money and/or a free property, and the foreigner, because he won't need to worry about all that 'extra money' anymore, as he won't ever see it again... 

 

Also, getting a mortgage on this as a foreigner from a Thai bank??

Edited May 21, 2023 by StayinThailand2much

[ThaiLawOnline]

5 hours ago, Peterw42 said:

 

It doesn't give property ownership, (as per the thread title), it gives ongoing usage , the same as a lease or usufruct, You cant sell the property.

This is not how I understand it. You can sell your rights that you have, same as property, Usufruct, you can sublease but over 3 years, you need to register is a you need authorization of the owner. it is new for me, been traveling for a while after COVID and did not pay attention during COVID. But I like this “opportunity” for some cases.

[ThaiLawOnline]

2 hours ago, StayinThailand2much said:

 

Also, getting a mortgage on this as a foreigner from a Thai bank??

This is understand it would be difficult. But yes, I personally got a mortgage as a foreigner from a bank but with my Thai wife around 2011. I was the first at that branch. So it is possible but hard, would need .a Thai guarantor and I see it practically impossible as the length is 30 years max….. but I like the “resale” option. I saw couple divorcing with contracts and the Thai partner cutting the water, making life impossible, getting Kaifak (sales with right of redemption) over a Usufruct (I saw it only twice)..

[ThaiLawOnline]

3 hours ago, stratocaster said:

Logic says that if this has been around since 2019 and is an absolute game changer regarding property….

Sorry to disagree,

1) Game changer is a bait click in the the article. But it is a new law for sure.

2) during COVID, not much happened with planes stopped, etc.

3) do you know about permanent residency? I have it. I do not do visa, i do not do TM30, i don’t do. 90 days report.

 

Permanent residency is fantastic, it does exist and not many people apply or get it. The year I got it we were 252 people I think. In the whole Thailand. 3 Canadians….does not means because something is rarely used that it is not useful.
 

Yes, they talk about a lease of 50 years for residential use for years but I do think this option has some use. I see it between unmarried couples, with a foreigner maybe over 60, to guarantee him 30 years of people. The lease would have probably more taxes, I have seen leases cancelled, etc.

 

Did I say it was perfect? No? But I just think people should measure it vs a Usufruct, superficies, leases, mortgage and other rights. The info on internet about it is limited.

 

Usufruct  is a real right and I do think it is very strong. (Same as I said in 2008) if the contract that makes it is also strong. I add clauses like the usufructuary can keep possession of Chanotte during his rights, that the owner can’t make any encumbrances and I also add a MOU on top when I do Usufruct. 
 

i see some potential for Sap Ing Sith. Leasehold for me is a personal right. I come from civil law background. But some Thai lawyers see it as real right when registered.

 

i like to add a declaration of intention to renew the lease under 168 of civil code to help for renewal of the second. 30 years but never seen applied yet. I started Thai law in. 2006 only…. Maybe 12 years from now! 
 

i saw fake chanotte, and anything you can’t imagine since 2006.

Edited May 21, 2023 by ThaiLawOnline

[carlyai]

Thanks Sebastian. ????