canthai wrote:
I would like to know where I can get an "Usufruct" prepared in Hua Hin. Any good lawyers names would be appreciated and the aprox. cost.
The Land Office do a standard one for you for 10,000 Baht, but I'd recommend seeing a lawyer as you made need some extra clauses put in, particularly if making the agreement with a spouse, see below. IMO there's a couple of good competant law firms in Hua Hin if you search around (I'll never recommend anyone though), they are more expensive but have farang lawyers who from my experience are a bit more on the ball with what clauses to put in whicch can make all the difference at the end of the day. Not exactly sure of their fees but possibly around the 20k mark for just the agreement, they will probably then suggest a land title search 10k. Some do full packages, agreement, title search and accompanying you to the land office to make sure everything is registered correctly, particularly checking that the Thai documents being registered are correctly worded as these can be wildy out but the Thai version will prevail under the law.
These full packages can be 50-60k Baht, people say this is a rip-off but I've seen leases that say you can sub-let your lease rights
"with" prior consent from landowner, this should say "
without". That one wrong word (or the Thai translation of it) could possibly screw things up for you and cost you some large money down the line. There's law firms in Bangkok, like Sunbelt Asia (if I'm allowed to mention them!?) advertising Usufruct agreement for 9,700 Baht on their website.
Good luck with it.
Big Boy wrote:
I've no idea what an Usufruct is, but there seems to be some useful information thrown up.
I'd never heard of them before I came to Thailand either BB, but they're becoming more popular of late. Basically as I understand it (could be wrong mind) ....
About Usufructs:
A Usufruct is a Latin term (usus et fructus, meaning "use and enjoyment") originating centuries back from Roman law and used in many developed countries who have Civil Law. It's been in Thai law since the early 1900's I believe, and was adopted from French Civil law. A 'usufructuary' has the right to possess, use and manage immovable property and the land
for their entire lifetime. Your name gets registered on the back of the land title just like a lease.
Whereas under a lease you have to add in a clause about sub-letting your lease rights (selling on), with a Usufruct Thai law already states you have the right to issue a lease to a.n.other, or temporarily rent it out on short term non-registered rentals, without gaining prior consent from the owner, you can't sell the property though only sell on the lease rights. Your Usufruct rights end when you die, they can't be inherited etc, but any lease you've registered to a family member/children beyond your death is still valid until it's period expires.
A really key point is that if you registered the Usufruct with a spouse AFTER you were married then the agreement could possibly be cancelled by either party upon divorce in accordance with a divorce law that states "
agreements made during marriage can be cancelled at the request of either party, UNLESS it affects a third party". A decent lawyer should advise you to have a separate lease/rental agreement in place with say a family member, so that a third party is involved, or at least do this when the writing's on the wall relationship wise. But if you bought the land in girlfriend's name and registered the Usufruct prior to marriage, then the above doesn’t apply as it's only agreements made during marriage that can be cancelled.
Another big advantage is if say your Thai wife (landowner) passes away before you, she may have 'willed' the land to you but you've got to try and get that registered in your/your kids names or sell it, with possible interference by family members. With a Usufruct whoever takes over that land, you still have the right to live in that same house for the rest of your days and you still have a legal right to give a 30 year lease to your kids when you're getting near the end of your days.
Extracts from Thai Law:
Section 1417 - An immovable property may be subjected to a usufruct by virtue of which the usufructuary is entitled to the possession, use and enjoyment of the property. He has the right of management of the property.
Section 1418 - A usufruct may be created either for a period of time or for the life of the usufructuary. If no time has been fixed, it is presumed that the usufruct is for the life of the usufructuary.
Section 1422 - Unless otherwise provided in the act creating the usufruct, the usufructuary may transfer the exercise of his right to the third person.
(Added: This is for maximum of 30 years though, not transfer your lifetime rights)
SJ