Farang buying a house with a Thai lady

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StevePIraq
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Re: Farang buying a house with a Thai lady

Post by StevePIraq » Tue Jul 18, 2017 3:37 pm

A lease does not give ownership, only the right to reside for up to 30 years, you never own or can sell the property
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kiwitezza
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Re: Farang buying a house with a Thai lady

Post by kiwitezza » Tue Jul 18, 2017 6:06 pm

Yes I agree. At least it's better to have a lease agreement than have the property solely in partners name only. Your name will be on the chanote and your partner will find it next to impossible to sell the land etc.
Gives you a powerful bargaining chip if you do part ways with the love of your life.

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Re: Farang buying a house with a Thai lady

Post by HHTel » Tue Jul 18, 2017 6:23 pm

A usufruct gives you all the power you need. You can even kick your wife (owner) off the property!! It gives you 'temporary ownership' of the land and can be until death. The owner cannot sell or lease the land while the usufructuary is alive. You cant sell the land but you can lease it to another. Technically, if you lease the land for 30 years just before you die, the owner has another 30 years to wait!!

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Re: Farang buying a house with a Thai lady

Post by Name Taken » Wed Jul 19, 2017 1:45 pm

kiwitezza wrote:
Tue Jul 18, 2017 6:06 pm
Yes I agree. At least it's better to have a lease agreement than have the property solely in partners name only. Your name will be on the chanote and your partner will find it next to impossible to sell the land etc.
Gives you a powerful bargaining chip if you do part ways with the love of your life.
Personally, I don't think a Lease Agreement is worth the paper it's written on here in the Land of Thai's. The Laws here in Thailand frequently change and generally speaking there is very little consistency in everything here and you have a corrupt judicial system with judges taking bribes under the table.

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Re: Farang buying a house with a Thai lady

Post by dundrillin » Wed Jul 19, 2017 4:57 pm

StevePIraq wrote:
Tue Jul 18, 2017 3:37 pm
A lease does not give ownership, only the right to reside for up to 30 years, you never own or can sell the property
Surely you can sell the house and arrange a new 30 year lease?

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Re: Farang buying a house with a Thai lady

Post by HHTel » Wed Jul 19, 2017 6:25 pm

I believe you can sell the lease, not the house, as a lessee you don't own it.

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Re: Farang buying a house with a Thai lady

Post by Nereus » Wed Jul 19, 2017 7:18 pm

HHTel wrote:
Wed Jul 19, 2017 6:25 pm
I believe you can sell the lease, not the house, as a lessee you don't own it.
Hmm, as far as I know you can build your own house, or any other building on leased land. It just needs to be set up before building. I also believe that you can do it with an existing building, but it is a bit more involved.

One thing people overlook with a lease is that tax has to be paid to register the lease, and then whomever owns the land has to pay income tax each year on the rent.
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Re: Farang buying a house with a Thai lady

Post by dundrillin » Wed Jul 19, 2017 7:28 pm

HHTel wrote:
Wed Jul 19, 2017 6:25 pm
I believe you can sell the lease, not the house, as a lessee you don't own it.
I thought it was the other way round.

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Re: Farang buying a house with a Thai lady

Post by HHTel » Wed Jul 19, 2017 8:57 pm

As a lessee you can sell/transfer the lease to a third party with the agreement of the owner.

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Re: Farang buying a house with a Thai lady

Post by alanhass » Wed Jul 19, 2017 9:40 pm

Nereus wrote:
HHTel wrote:
Wed Jul 19, 2017 6:25 pm
I believe you can sell the lease, not the house, as a lessee you don't own it.
Hmm, as far as I know you can build your own house, or any other building on leased land. It just needs to be set up before building. I also believe that you can do it with an existing building, but it is a bit more involved.

One thing people overlook with a lease is that tax has to be paid to register the lease, and then whomever owns the land has to pay income tax each year on the rent.
We have built many houses for guys that have usefruct rights on leased land and many more that are married and have the right to own the house so they do contracts where the wife owns the land and the husband owns the house. It gets boring when all these scare mongers with no idea keep scaring people from having their own house here. All it takes is a bit of common sense and a few baht for legal papers and your set for life.
I have been a house builder in Thailand for nearly a decade and have yet to meet a client that lost their home.


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Michaelaway
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Re: Farang buying a house with a Thai lady

Post by Michaelaway » Wed Jul 19, 2017 10:06 pm

USUFRUCT... the only way to go.

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Re: Farang buying a house with a Thai lady

Post by HHTel » Wed Jul 19, 2017 10:19 pm

HHTel wrote:
Wed Jul 19, 2017 6:25 pm
I believe you can sell the lease, not the house, as a lessee you don't own it.
Correction to the above. I meant 'not the land'. You can own the house of course.

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Re: Farang buying a house with a Thai lady

Post by StevePIraq » Thu Jul 20, 2017 4:37 pm

Michaelaway wrote:
Wed Jul 19, 2017 10:06 pm
USUFRUCT... the only way to go.
I have Usufruct, this only gives you the right to reside in the house, it does NOT give you any ownership rights.
"Live everyday as if it were your last because someday you're going to be right." Muhammad Ali

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Re: Farang buying a house with a Thai lady

Post by HHTel » Thu Jul 20, 2017 9:59 pm

It does give you 'temporary ownership'. You can reap the fruits of the land and can also enter into a lease agreement with a third party. As I've already said, if you lease the land to a third party just before your death, then the owner has to abide by that lease. The owner cannot sell or transfer the land until the servitude has finished.
I have been involved in a couple of usufructs in an advisory capacity and it does check out. A usufruct however is at the discretion of the Land Office.
The beneficiary in a usufruct scenario may also transfer his rights to the usufruct to a third party according to the Civil and Commercial Code of section 1422.

The grantor of the usufruct however will still claim for damages caused by the third party directly against the usufructuary.

An interesting feature of usufruct is that the usufructuary can enter into a 30-year lease with a third party. So if the usufructuary signed a 30-year lease contract before his death, the lessee (tenant) will maintain the rights of the lease until its expiration.

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Re: Farang buying a house with a Thai lady

Post by laser » Fri Jul 21, 2017 1:17 pm

A view on usufruct, with some interesting implications.

http://pugnatorius.com/usufruct/

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