Leases
Although
foreigners usually may not buy land, they may lease land on
a short- or long-term basis. Because of the barriers to land
purchase, a long-term lease is usually the most popular form
of land “ownership” for foreigners. The maximum
period for a land lease under Thai property law is 30 years
and such a lease can be renewed for up to 30 years more. Land
use for industrial purposes may be leased for 50 years with
a 50-year extension. However, court decisions have held that
the renewal clause is personal to the signatory landlord and
thus may not be binding on his heirs or assignees. Leases for
more than three years must be registered on the title deed or
certificate of use. If not registered, the lease is valid for
only three years regardless of its stated terms.
Leases
for up to three years may be entered into by simple contract
and need not be registered. Leases for three years with an option
to renew may in some cases be treated as a lease for more than
three years and the renewal option may thus be valid unless
the lease is registered.
Other
Rights in Land
Various
other legal rights associated with land similar to such rights
in other countries are also available to both Thais and foreigners.
Legally, a building is considered part of the land on which
it is built. However, the Thai owner of land may grant a foreigner
the right to personally own all buildings or other constructions
on land the foreigner has rented; this is known as the right
to superficies. The owner of land may also grant non-owner rights
(Usufruct) to the foreigner to possess, use and enjoy the benefits
of the property.
A
Thai landowner may also grant a right to habitation. This is
a right to inhabit a building as a dwelling without paying rent.
It may be granted for the life of the grantee or for a period
of time not exceeding thirty years subject to the right to renewal
for an additional period of 30 years. Land may be subject to
“charges” entitling the holder to specific use or
enjoyment of a property. The charge may be for the life of the
beneficiary or for 30 years, subject to a right to renewal.
The rules concerning documentation of superficies and other
rights are similar to those concerning leases.
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