A usufruct is a right granted by an owner of land in favour of a usufructuary where the usufructuary has the right to possess, use and enjoy the benefits of the property. The usufructuary can also have the right of management of the property.
A usufruct may be created for your natural life. You also can lease the land to a third party which would not end if you died. Example: If you died, you can lease out the property to a third party before your demise as per the Supreme Court ruling 2297/1998; “the lessor does not have to be the owner of the property. Therefore the usufructuary can rent out the land. In the event of death of the usufructuary within the lease term, only the usufruct will be terminated but not also the lease.” However, any lease agreements longer than 3 years must be registered with the Land Office and with the title deed.
A usufruct can also be given to more than 1 person at the time. With the usufruct, you are registered on the title deed. The land can never be sold or transferred by the owner of the land until the servitude is terminated. You can also get a yellow book which is a House Registration Certificate (Thor. Ror 13). The usufruct would be registered with a 1.5% tax of the value of the benefit (if you are not married to a Thai wife, if you are, the tax is less than 100 Baht). Our firm charges 9,500 for the drafting of the agreement, 8,500 for registration of the usufruct, House Registration Certificate (yellow book Thor Ror 13) professional registration fees are 8,800 Baht.