Usufructs in Thailand. A usufruct is one of the most important legal tools available under Thai law for granting long-term rights to use and benefit from immovable property without transferring ownership. Commonly used by foreign nationals, retirees, family members, and investors, usufructs offer a lawful and flexible way to secure property rights in Thailand while remaining compliant with land ownership restrictions.
This article provides a detailed and practical explanation of usufructs in Thailand, covering their legal foundation, scope of rights, registration requirements, duration, advantages, limitations, termination, and common legal pitfalls.
1. Legal basis of usufructs in Thailand
Usufructs in Thailand are governed by Sections 1417–1428 of the Thai Civil and Commercial Code (CCC). The law defines a usufruct as a real right that allows one person (the usufructuary) to possess, use, and enjoy the benefits of property owned by another person, provided the substance of the property is preserved.
A usufruct is classified as a real right, meaning it is enforceable against third parties once properly registered, unlike contractual rights that bind only the parties involved.
2. Who can grant and hold a usufruct
Property owner
Only the legal owner of the property may grant a usufruct. The owner retains ownership but temporarily gives up possession and economic benefit.
Usufructuary
A usufructuary may be:
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A Thai or foreign individual
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A legal entity (company)
This makes usufructs particularly attractive to foreigners who cannot own land in Thailand but wish to secure long-term use of land or houses.
3. Types of property that may be subject to a usufruct
Usufructs may be granted over:
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Land with a valid title deed (Chanote, Nor Sor 3 Gor)
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Residential houses and buildings
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Commercial buildings
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Condominiums
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Agricultural land
The usufruct applies only to the property specified in the registered agreement.
4. Rights granted under a usufruct
A registered usufruct grants the usufructuary several powerful rights:
Right of possession
The usufructuary has exclusive possession of the property, even against the owner.
Right of use
The property may be used for residential, agricultural, or commercial purposes, provided such use does not damage the substance of the property.
Right to benefits and income
The usufructuary is entitled to all income generated from the property, including:
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Rental income
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Agricultural yields
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Commercial profits
Unless expressly restricted, leasing the property to third parties is generally permitted.
5. Duration of a usufruct
The duration depends on who holds the usufruct:
Individual usufructuary
A usufruct granted to a natural person lasts for the lifetime of the usufructuary, unless a shorter period is specified.
Corporate usufructuary
If granted to a juristic person, the maximum duration is 30 years.
Unlike leases, usufructs cannot be renewed automatically by law. A new registration is required after expiration.
6. Registration requirements
A usufruct must be registered at the Land Office to be legally valid. Verbal agreements or private contracts alone are insufficient.
Registration requirements include:
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Title deed of the property
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Identification documents of the owner and usufructuary
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Written usufruct agreement
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Land Office registration fee
Once registered, the usufruct is annotated on the title deed, making it enforceable against future purchasers or creditors.
7. Usufructs vs leases and superficies
Usufruct vs lease
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A lease grants contractual rights; a usufruct creates a real right
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Leases are limited to 30 years; usufructs may last for life
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Usufructs provide stronger protection against third parties
Usufruct vs superficies
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Superficies grants ownership of buildings on land
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Usufruct grants use and enjoyment of the entire property
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The two rights may coexist but serve different purposes
Understanding these distinctions is critical when structuring property arrangements.
8. Obligations of the usufructuary
The usufructuary is subject to important legal duties:
Maintenance and care
The usufructuary must:
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Maintain the property in good condition
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Bear ordinary maintenance costs
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Prevent deterioration beyond normal wear and tear
Taxes and expenses
Unless otherwise agreed:
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Property taxes and routine expenses are borne by the usufructuary
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Extraordinary repairs may be the owner’s responsibility
No destruction or misuse
The usufructuary may not destroy or fundamentally alter the property unless permitted by the owner.
9. Obligations of the property owner
The owner must:
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Respect the usufructuary’s possession and use
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Refrain from interfering with lawful enjoyment
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Perform extraordinary repairs when required
The owner retains title but temporarily relinquishes control.
10. Termination of a usufruct
A usufruct may terminate by:
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Death of the usufructuary
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Expiration of the agreed period
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Renunciation by the usufructuary
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Destruction of the property
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Merger of ownership and usufruct in the same person
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Court order due to misuse or serious breach
Upon termination, possession reverts fully to the owner.
11. Can a usufruct be inherited?
A usufruct cannot be inherited unless it is granted to a legal entity. For individual usufructuaries, the right extinguishes automatically upon death.
This limitation is often misunderstood and should be considered carefully in estate planning.
12. Common uses of usufructs in Thailand
Usufructs are frequently used for:
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Foreign spouses securing lifetime residence
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Retirees protecting long-term housing rights
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Family arrangements involving elderly parents
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Business use of land without ownership transfer
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Asset protection and succession planning
They are especially common in mixed-nationality marriages.
13. Risks and legal pitfalls
Despite their advantages, usufructs involve risks:
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Improper drafting may limit rights unintentionally
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Failure to register invalidates the usufruct
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Conflicts with mortgages or prior encumbrances
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Misunderstanding tax and expense responsibilities
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Difficulty in enforcement without legal clarity
Professional legal drafting is strongly advised.
14. Usufructs and foreign ownership restrictions
Usufructs do not circumvent foreign land ownership laws. The foreign usufructuary does not own the land but holds lawful use rights.
Authorities closely scrutinize arrangements that appear to disguise ownership transfers.
15. Role of legal advice
Legal professionals assist by:
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Structuring usufructs alongside leases or superficies
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Drafting enforceable agreements
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Conducting title due diligence
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Registering rights correctly at the Land Office
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Resolving disputes or termination issues
Early legal advice significantly reduces risk.
Conclusion
Usufructs in Thailand provide a powerful, lawful mechanism for securing long-term rights to use and benefit from property without transferring ownership. When properly registered and carefully structured, a usufruct offers stability, enforceability, and flexibility—particularly for foreigners and families navigating Thailand’s property laws.
However, usufructs are not one-size-fits-all solutions. Their lifetime nature, non-inheritability, and maintenance obligations require careful legal planning. Understanding both the strengths and limitations of usufructs is essential to ensuring they serve their intended purpose without future disputes.