If you are looking at buying a villa in Thailand or a house or for that matter land in Issaan, it would be best to speak to one of our real estate attorneys in Thailand. This is only a very brief overview. What are the advantages of the one over the other when looking at a lease agreement ro a usufruct in Thailand:
- 1. The lease agreement can only be for 30 years maximum;
- 2. The usufruct has no time limit;
This is important if you wish to only use the land to live on as in a right of habitation and how long you think you would like to live on the land.
- 1. The lease agreement allows you to build on the land and make agreed changes;
- 2. The usufruct is limited in this regards.
This is important if you are going to make a large investment in real estate in Thailand. Can you recover any capital expenses during this time or would you prefer to recover the outlay during your entire lifetime. As explained before it will be very difficult to obtain an extension is the owner or new owner of the property does not wish to renew your rental agreement. Normally the usufruct does not allow you to build on the land however what if you lease 500 hectares of land of which 10 hectares are already rubber plantations. If you which to roll out more rubber on the other plantations it is going to take at least 7 years before you see the first rubber coming from the trees. By that time a quarter of your time on your lease agreement has already been used. Speak to a real estate attorney about these issues before signing any agreements.
Decide what it is that you wish to do with the land and how best to archive this before you go by way of a lease agreement or a usufruct. Speak to one of our real estate attorneys about the options available to you.
Do it now!