usufruct or lease

[Harveyboy]

hello ive just been reading a post from op asking which is more secure when buying or building with a partner here good question anyone like to comment

[chiang mai]

Usufruct, no question, just make sure it's not granted by your spouse and that you pay a monthly fee for it, no matter how small.

[Harveyboy]

1 minute ago, chiang mai said:

Usufruct, no question, just make sure it's not granted by your spouse and that you pay a monthly fee for it, no matter how small.

tks mate will look into it

[happy Joe]

The Usufruct confers exactly the same rights as the lease. In addition, it has some advantages:
- No limit in time.
- No tax on "fictitious" rents
- No finesse or administrative lie. The usufructuary situation corresponds precisely to that of a spouse (or friend) who is not a proprietor but fully enjoys until the end of his life a property for which he often invested own funds.
 

[happylarry]

The only downside to the usufruct is if granted by a wife to a husband for a common property then in the case of a divorce the wife can then simply cancel the usufruct without any argument.

It can only be cancelled in this situation though.

HL

[blackcab]

5 hours ago, happylarry said:

The only downside to the usufruct is if granted by a wife to a husband for a common property then in the case of a divorce the wife can then simply cancel the usufruct without any argument.

It can only be cancelled in this situation though.

HL

 

I'm not sure I agree with that, as a Usufruct is a real property right. In addition, the Usufruct should not be cancelled if it affects an innocent third party (which the land office would need to determine). I asked a few land offices and they said they wouldn't cancel the Usufruct just because of divorce.

 

What the land office did say is that there is a possibility the Court could cancel the Usufruct as part of a divorce settlement, in which case they would obviously comply.

 

It's an interesting point and probably worthy of a separate thread.

 

Does anyone have any experience of a Usufruct being unilaterally cancelled by their ex-Thai partner after a divorce?

[happylarry]

Hi Blackcab,

 

Its got nothing to do with the land office, they have no say in it, as they say if the wife asks the court to cancel it as part of the divorce then they will and the land office will then have to comply.

This was explained to my wife by a Judge during a court case, so I have no reason to not believe it.

 

Will try and make it for that drink sometime mate.

HL

[blackcab]

1 hour ago, happylarry said:

Hi Blackcab,

 

Its got nothing to do with the land office, they have no say in it, as they say if the wife asks the court to cancel it as part of the divorce then they will and the land office will then have to comply.

This was explained to my wife by a Judge during a court case, so I have no reason to not believe it.

 

Will try and make it for that drink sometime mate.

HL

 

Look forward to it.

 

I do agree with you about the Court being likely to cancel the agreement (if the two parties can't agree matters themselves).

 

I think some people believe that an ex-spouse can storm off to the land office and cancel the Usufruct on a whim within one year of divorce.

 

As I said, I'm not too sure about that. For example, could an ex-wife cancel the previously completed sale of a condo to her ex-husband just because she went to the land office and instructed them to? I don't think so.

[happy Joe]

Only the court can cancel a usufruct.

 

These decisions are rare, difficult to obtain and generally accompanied by financial compensation for the benefit of the usufructuary.

 

In addition the owner will have to hire a lawyer for a lengthy, costly and uncertain trial.

 

In law nothing is 100% guaranteed, but for Thailand, in the vast majority of cases, usufruct is the best protection for foreign home investment.
 

[Khun Jean]

Nope it is not a lengthy or costly process. The 'wife' goes to court and all contracts between husband and wife that were made during marriage are cancelled. Everything is then 'divided' according to 'sin suan tua' and 'sin somros'.