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A usufruct is a legal right granted to a person, known as the usufructuary, allowing them to possess, use, enjoy, and manage another person’s immovable property. Although the usufructuary does not become the owner of the property, they are entitled to derive benefits or income from it, provided that the property’s substance is not damaged or materially altered.
A registered usufruct allows the usufructuary to occupy and use the property, and this right will be recorded on the property’s title deed (Chanote).
It becomes valid and enforceable against third parties only upon registration with the Land Department. Once registered, the usufruct remains attached to the property and is generally enforceable against subsequent owners and other third parties.
Yes. A foreigner may be registered as a usufructuary over land or other immovable property in Thailand, even though foreigners are generally prohibited from owning land directly.
A registered usufruct gives the foreign usufructuary the legal right to possess, use, enjoy, and derive benefits from the property for the agreed period or for the duration of their lifetime. Once properly registered with the Land Department, the right will be recorded on the property's title deed and is enforceable against third parties.
However, a usufruct does not transfer ownership of the property to the foreigner. Ownership remains with the registered owner throughout the duration of the usufruct.
During the usufruct period, the usufructuary is responsible for the property's ordinary management, routine maintenance, and minor repairs. The usufructuary must also pay taxes, duties, and interest on debts charged against the property.
If major repairs are required to preserve the property, the usufructuary must promptly notify the owner. If the owner fails to carry out the necessary repairs, the usufructuary may undertake the repairs and recover the expenses from the owner.
Extraordinary expenses relating to the property are generally the responsibility of the owner. However, the usufructuary may choose to advance such expenses without charging interest.
A usufructuary cannot sell the property because ownership remains with the owner.
Unless otherwise restricted by the usufruct agreement, the usufructuary may transfer the exercise of their rights to a third party and may lease the property during the term of the usufruct. Any such rights cannot continue beyond the expiry of the usufruct itself.
Upon its termination, the usufructuary must return the property to the owner and replace anything that has been wrongfully consumed or removed.
The usufructuary may be liable for damage, destruction, or depreciation in value caused by their fault. However, they are not required to compensate the owner for ordinary wear and tear resulting from reasonable use of the property.
For foreigners who are generally prohibited from owning land in Thailand, a usufruct can provide long-term security and legal rights to occupy, use, and enjoy a property.
Although the owner may still sell or mortgage the property, a registered usufruct generally remains attached to the property and is enforceable against subsequent owners. As a result, prospective purchasers or lenders may be reluctant to proceed unless the usufruct is first terminated.
A usufruct can therefore be an effective tool for protecting a foreign spouse's or partner's right to reside on and use land owned by a Thai national.
A properly drafted and registered usufruct can provide valuable protection for individuals who wish to secure long-term rights to use and enjoy property in Thailand. Whether you are a foreign spouse, retiree, investor, or property owner, obtaining professional legal advice can help ensure that your rights are properly protected and that the registration process is completed correctly.
Contact Magna Carta Law Firm today to discuss your circumstances and learn how this may help safeguard your interests in Thailand. Our legal team can assist with drafting agreements, conducting due diligence, and handling the registration process with the Land Department.
Legal Disclaimer
The information provided on this page is for general informational purposes only and does not constitute legal advice. Laws and regulations may change, and the application of the law depends on the specific facts and circumstances of each case. Reading this page or contacting our firm through this website does not create a lawyer-client relationship. You should seek professional legal advice before making any decision regarding property rights, usufructs, or other legal matters in Thailand.
Licensed Attorney-At-Law | Licensed Notarial Services Attorney, The Lawyers Council of Thailand
Legal Counselor, Central Juvenile and Family Court
Specializing in Contracts, Property, Corporate, and Family Matters
