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Legal Usufruct

“Usufruct” is one kind of legal right which has benefit a lot for investment in real estate business. If we apply to use with investment real estate business properly. It will help to get opportunity to invest successfully.

“Usufruct” according to Thai law means right of person for using and taking advantage from real of other person by paying rental fee or requite benefit or do nothing. Therefore, when the owner of real estate register usufruct right to whom, so every right following civil and commercial code especially right to take benefit and right for renting to transfer to usufruct holder. Except right to sell only which still be with real estate owner.

Because usufruct gives right to take almost all advantage in real estate, so benefits of usufruct that we can understand as follow:

  1. Using to be condition to transfer real estate to others. In case father and mother would like to transfer the land to children during they are alive, but they afraid that children will sell it and not take care of them. The best way to protect is transfer property by using children’s name and register to make usufruct right to parent of transferor

  2. Using instead of transfer ownership to alien which can use to apply to write usufruct to alien instead of transferring an ownership. Person who hold ownership can register usufruct right having forever period to let alien be the usufruct holder.

  3. Using to be a tool to disperse income to pay tax to others. It’s one kind of plan technique to pay tax to disperse income for paying tax to others the tax is in lower rate, for instance has a lot of income from rental fee, so the burden of tax is high. They may disperse income to other or children by register usufruct right.

  4. Using to avoid limitation of transfer land title deed in case government gives poor people to make benefit which having rule to does not transfer within 10 years. Usufruct registration to one option to avoid a law by registering usufruct instead during having rules to do not transfer.

However, Usufruct registration makes risk to owner of real estate. Therefore we should avoid register in long period and should register in short period and continue occasionally or register like can cancel anytime. 

Usufruct can write for anyone, but for security reason you should register with relatives or people in family. Ending of usufruct law specified that usufruct will end in one way or another include cancel usufruct agreement or in case property is base to assure usufruct is away by there is no instead other property or usufructuary pass away.


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