This is How You can Exploit Usufruct Agreement for Possessing a Land in Thailand
Not being able to own a land in your name can be a big setback for most potential property investors in Thailand. But there is good news for the foreigners who have been planning to own a land in their name. Undertaking a usufruct agreement can let them access and possess land lawfully.
In this type of agreement, the parties involved are the land owner and the individual granted to use the property (usufructuary). In order to have a right to the property, you must get it registered at the relevant Land Office. Upon registration of the agreement, the public will be notified of the usufruct burden on the property. When registered, the right of the usufruct is typically incorporated in the Title Deed. However, if the land is to be sold, it is expected from the buyer to respect the usufruct agreement attached.
The main feature of this type of agreement is that the usufructuary can enjoy, use as well as possess the land. Significantly, he or she will be acting like an owner, but not having the right to sell it. Similarly, he is obliged to take a very good care of the land, just like his own. That being said, he will be responsible for the destruction of the property, unless he proves that the evident damage is not caused by him. He will not be obliged to recompense though when depreciation is caused due to normal wear and tear.
As according to the agreement within, the usufructuary is obliged to pay the taxes and other government duties alongside the interest charged upon the land. Another characteristic of this agreement is that the usufructuary is eligible to transfer his rights to the property to a third party. And this indirectly means that the usufructuary has all the right to lease the property for another period. However, the actual owner of the land is liable to give objection to the unlawful use of the property. As soon as the term of the agreement expires, the property will be reverted back to the owner.Tags : Possess Land Thailand, usufruct agreement,