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Civil and Commercial Code - Usufruct
Civil and Commercial Code ss.1417-1428
The information is reviewed and updated monthly against official sources.
In short
Sections 1417 to 1428 of Thailand's Civil and Commercial Code govern usufruct, a registrable real right that lets a person (often a foreign spouse) possess, use, and take the income of another's land or building for life or a fixed term capped at thirty years.
1417: What a usufruct grants
A usufruct is a real right over immovable property that lets the holder occupy it, use it, and collect its fruits and income, together with the power to manage it day to day. Where the land carries a forest, mine, or quarry, the holder may also work and extract from those resources.
1418: Duration: for life or up to thirty years
A usufruct may run for the holder's lifetime or for an agreed period. A fixed term cannot exceed thirty years; if a longer term is set, it is reduced to thirty years, and it may be renewed for further periods of up to thirty years. If no term is stated, the right is presumed to last for the holder's life.
1419: Destruction or expropriation of the property
If the property is destroyed and no compensation is payable, the owner need not rebuild, but any rebuilding revives the usufruct to that extent. Where compensation is received, the parties restore the property as far as the sum allows; if restoration is impossible the right ends and the money is split in proportion to each party's loss.
1420: Returning the property when the right ends
When the usufruct ends, the holder must hand the property back to the owner. The holder answers for loss or fall in value caused by fault, must replace anything wrongly used up, and may make good a deficiency in money, but is not liable for normal wear arising from proper everyday use.
1421: Standard of care
In exercising the usufruct, the holder must look after the property with the same prudence and diligence that a reasonable person would apply to managing assets of their own. This duty sets the benchmark against which any claim of neglect or careless handling is later measured.
1422: Assigning the exercise of the right
Unless the grant says otherwise, the holder may let a third party exercise the usufruct, for example by leasing the property out. The original holder stays responsible toward the owner, and the owner may take direct action against whoever actually exercises the right, such as a tenant.
1423: Owner's right to object and demand security
The owner may object to any unlawful or improper use and, where their interests are endangered, may demand security. If the holder refuses to provide it or carries on using the property unlawfully, the court may suspend the holder's exercise of the right and appoint a receiver to manage the property instead.
1424: Ordinary upkeep and repairs
The holder must preserve the substance of the property and carry out ordinary maintenance and minor repairs at their own cost. If major repairs or measures are needed to protect the property, the holder must notify the owner without delay and permit the necessary work to be done.
1425: Extraordinary expenses
Costs of an extraordinary or capital nature fall on the owner. To cover them the owner may sell part of the property, unless the holder chooses to advance the needed funds, in which case the holder is entitled to no interest but recovers the money when the usufruct ends.
1426: Taxes, charges, and interest on debts
For the duration of the usufruct the holder bears the running costs of management, pays the taxes and public charges levied on the property, and covers the interest on debts secured by it. These obligations track the period during which the holder actually enjoys the use and income of the property.
1427: Insurance at the owner's request
If the owner asks, the holder must insure the property against loss for the owner's benefit. Where a policy already exists, the holder must renew it as it falls due. Throughout the period of the usufruct, the holder is responsible for paying the insurance premiums.
1428: One-year limitation on claims
Claims between the owner and the holder (or the holder's transferee) arising out of the usufruct must be brought within one year after the right comes to an end. This short limitation period covers matters such as return of the property, compensation for damage, and reimbursement of expenses.
registration-land-office: Registration at the Land Office
To bind third parties and take full effect against the land, a usufruct over titled immovable property must be registered with the Land Department and noted on the title deed. An unregistered agreement may bind the contracting parties personally but does not create the protected real right over the property.
foreign-spouse-protection: Using usufruct to protect a foreign spouse
Because foreigners cannot own land, a Thai owner (often a Thai spouse) may grant the foreign partner a registered lifetime usufruct. This secures the right to live in and use the home and to receive its income for life, surviving sale of the land; it is a personal right that ends on the holder's death and cannot be inherited.