Lease Question

[redman]

Long term gf (5 years) has bought 2 rai of land in Isaan. The idea is that we start to build a small house after the rainy season. We have spoken about this for a few years and about protections for farangs and herself and have decided that she will lease me the land and I will own the house. It will be willed to her in any case. As I am getting on, the 30 years lease might be a bit excessive, and I feel I owe her something after 5 years anyway.

My question is, when do we make the lease out. Before we build the house, or after? She wants to do it before we build, but I am unsure if we have to have something on it first. Any advantages either way?

Second Question. How much would a lease cost to write up and register at the Land Office? Nominal value of the land is around 100,000 baht.

Please treat this as a serious question, I can hear the knives being sharpened already.

[Artamus]

Long term gf (5 years) has bought 2 rai of land in Isaan. The idea is that we start to build a small house after the rainy season. We have spoken about this for a few years and about protections for farangs and herself and have decided that she will lease me the land and I will own the house. It will be willed to her in any case. As I am getting on, the 30 years lease might be a bit excessive, and I feel I owe her something after 5 years anyway.

My question is, when do we make the lease out. Before we build the house, or after? She wants to do it before we build, but I am unsure if we have to have something on it first. Any advantages either way?

Second Question. How much would a lease cost to write up and register at the Land Office? Nominal value of the land is around 100,000 baht.

Please treat this as a serious question, I can hear the knives being sharpened already.

You can do a lease on the land any time, so I'd suggest you do it ASAP. I assume you have a channot for the land, otherwise a lease cannot be done to my knowledge. I have a lease on land (about 4 Rai) owned by my wife and the cost was around 11,000 Bhat to do the lease if I remember correctly. This included the actual lease (about 4,000), plus some nominal "rent/tax" associated with the lease agreement plus some "tea money" to ensure things went quickly and smoothly.

[katabeachbum]

If you register a lease before applying for buildingpermit, or start building if your area does not require a buildinpermit, you can become the sole owner of the house.

The land office fee to register a lease is 1,1% of the apreciated value, which could be less than your estimated value. The fee is the same for 5 years and 30 years. There is also a annual income tax, which can be payed year by year.

I would also look into usufruct, another thread here.

With a lease or usufruct there is no need to will the property to her, since the usufruct is automaticly cancelled by death, and the same can be agreed on in the lease.

Edit: Lease or usufruct can be registered in Nor Sor Sam Gor and Chanote land titles only.

Edited June 20, 2009 by katabeachbum

[samILO]

Dear Artamus,

There is actually by law a suitable contract you can use, it is called the Superficies AGreement, which is also registered on the back of the title deed, thus binding to third parties BUT the big advantage is that you don't need to have any consideration, means payment for it, you can say that the house you have to build goes into ownership of your wife once the agreement expires (agreement can be live time). You can sell such rights and you can pass it on to hires. Very unknown and maybe a problem at land department to register at first, OR you can register the usage rights only, so you can live in the property, but so can your wife.

Sam

[redman]

One thing which confuses me is the Thai definition of marriage. We have nothing legal or any paperwork, but there seems to be an understanding that I am her Husband. Unsure if this means similar to "Common Law" in UK, or "de Facto" in Australia. Does it make any difference or have any bearing on the lease question?

[samILO]

Hi Redman,

Yes it is considered by society such (living together as husband and wife under the same roof), even by law as common Law Marriage, but it doe snot make any difference for your lease and it is not considered a legal marriage, thus not having any rights to marital assets.

[redman]

Hi Redman,

Yes it is considered by society such (living together as husband and wife under the same roof), even by law as common Law Marriage, but it doe snot make any difference for your lease and it is not considered a legal marriage, thus not having any rights to marital assets.

Thanks a lot for your help and information