Registering a usufruct in Thailand.
- The usufructuary does not obtain the title to the property, nor can he sell or consume the property;
- The usufructuary must take as much care of the property as a person of ordinary prudence would take of his own property
- The usufructuary is NOT allowed to transfer the right of usufruct, but he is allowed transfer the exercise of his right under the usufruct to another person
- The usufruct is not transferable by inheritance
- The usufruct is governed by the sections 1417 to 1428 Civil and Commercial Code
Both foreigners and Thais can obtain a Thai usufruct for property in Thailand. A Thai usufruct can be of great advantage to the foreigner seeking to obtain property in Thailand because it will provide a large degree of insurance since under the Thai Civil and Commercial Code a foreigner is ineligible to own land (except in the case of Condos in Thailand ). Since a Thai usufruct is not ownership of land, but merely a right of use, the legal restrictions upon a foreigner in Thailand are greatly diminished.
In a general sense, Thai usufructs last for 30 years. However, a natural person, either foreign or Thai, has the right to a lifetime Thai usufruct as long as the Thai usufruct agreement stipulates as such. This is a great benefit to foreigners in Thailand because it means a person with a home in Thailand could live and enjoy the home and any land surrounding it for the whole of their natural lives. However, one downside to this is that, under provisions of Thai law, the Thai usufruct extinguishes at the end of the original Thai usufruct holder’s natural life.