A usufruct in Thailand is a registered real right that lets one person possess, use and take the income of another person’s land or building, without becoming its owner. The Civil and Commercial Code governs it in Sections 1417 to 1428. Those twelve sections set the term, the holder’s duties, the owner’s protections and the way the right ends.
A rent-free right to live in a building is a separate real right, explained in our guide to the right of habitation in Thailand.
Where land is burdened for the benefit of a neighbouring plot rather than a person, the rules on servitude in Thailand apply instead.
A usufruct attaches only to immovable property and gives the holder possession, use, the fruits of the property and the right to manage it (Section 1417). It may run for a fixed term or for the holder’s life; a fixed term may not exceed thirty years, and the right always ends when the holder dies (Section 1418). Acquisition by contract must be in writing and registered with the competent official (Section 1299). Claims between owner and holder must be brought within one year after the usufruct ends (Section 1428).
What Is Usufruct in Thailand?
Usufruct, or sitthi kep kin, is a real right over immovable property. Under Section 1417, the usufructuary is entitled to possess, use and enjoy the property and to take its fruits. The holder also has the right to manage the property. Ownership stays with the owner throughout.
Section 1417 adds a special rule for natural resources. Where the usufruct covers a forest, a mine or a quarry, the holder may also exploit that forest, mine or quarry. As a real right, the usufruct attaches to the property itself rather than to a contract between two people.
How Is a Usufruct Created and Registered?
A usufruct created by agreement is an acquisition of a real right in immovable property by juristic act. Section 1299 provides that such an acquisition is not complete unless the juristic act is made in writing and the acquisition is registered with the competent official.
The registered instrument is also the place to set the terms the Code leaves open. Several sections apply only “unless otherwise agreed”. Accordingly, the instrument should state the term, any limit on transferring the exercise of the right and the allocation of costs the parties want to vary.
How Long Can Usufruct in Thailand Last?
Section 1418 allows a usufruct for a fixed period or for the whole life of the holder. If the instrument fixes no period, the law presumes that the right lasts for the holder’s life. If it fixes a period, Section 1418 applies the time limits for the right of habitation in Section 1403, paragraph 3.
Under that rule, a fixed term may not exceed thirty years. A longer term is reduced to thirty years. The parties may renew the right, but the renewed term may not exceed thirty years from the date of renewal.
One rule overrides every term. Section 1418 states that the usufruct always ends when the holder dies. A thirty-year usufruct granted to one person therefore ends early if that person dies in year ten. The right cannot pass to the holder’s heirs.
What Rights Does the Usufructuary Hold?
The usufructuary holds four powers under Section 1417: possession, use, enjoyment of the fruits and management. The holder may live in the property, let it out, farm the land and keep the income it produces. These powers last only as long as the usufruct itself.
| Subject | Rule | Section |
|---|---|---|
| Scope of the right | Possession, use, fruits and management of immovable property; exploitation of a forest, mine or quarry included in the usufruct | 1417 |
| Term | Fixed term of up to thirty years, renewable, or for life; presumed for life if no term is fixed; ends on the holder’s death | 1418, 1403 |
| Transfer | The holder may transfer the exercise of the right to a third party, unless the creating instrument forbids it | 1422 |
| Running costs | The holder pays management costs, taxes and duties, and interest on debts charged on the property | 1426 |
| Time limit for claims | One year from the end of the usufruct | 1428 |
Can the Usufructuary Transfer the Right?
The holder may transfer the exercise of the right, not the right itself. Section 1422 allows the usufructuary to transfer the exercise of the usufruct to a third party, unless the instrument creating the usufruct provides otherwise. If the holder makes such a transfer, the owner may sue the transferee directly.
The distinction matters for planning. The right stays tied to the original holder’s life under Section 1418, even after the exercise passes to someone else. Consequently, a transferee’s position ends when the original holder dies, whatever the transfer agreement says.
Duties of Care, Repairs and Costs
The Code places the ordinary burden of the property on the holder and the extraordinary burden on the owner. Section 1421 requires the usufructuary to take care of the property as a person of ordinary prudence takes care of his own property. The remaining duties follow that division.
Preservation and repairs
Section 1424 requires the holder to preserve the property without changing its essential character. The holder carries out ordinary maintenance and minor repairs. For major repairs, or measures needed to protect the property, the holder must notify the owner promptly and allow the work. If the owner neglects the work, the holder may do it at the owner’s expense.
Extraordinary costs
Under Section 1425, the owner bears extraordinary expenses. The owner may sell part of the property to meet them, unless the usufructuary agrees to advance the necessary funds without interest.
Taxes, interest and insurance
During the usufruct, Section 1426 makes the holder liable for management costs, taxes and duties, and interest on debts charged on the property. Under Section 1427, the holder must insure the property for the owner’s benefit if the owner requires it. If the property is already insured, the holder must renew the policy and pay the premiums while the usufruct lasts.
Owner Protection Under Usufruct in Thailand
The owner keeps tools to protect the property during the usufruct. Under Section 1423, the owner may object to any use that is unlawful or improper. If the owner shows that his rights are in danger, he may require the holder to provide security. This duty does not apply to a donor who gave the property away and reserved the usufruct for himself.
The court may step in where the holder resists. If the holder continues the improper use despite the owner’s objection, or fails to provide security within the time set, the court may appoint a receiver to manage the property in the holder’s place. The court may discharge the receiver once the holder provides security.
Destruction, Compulsory Purchase and the End of the Right
Section 1419 deals with loss of the property. If the property is destroyed and no compensation is paid, the owner need not restore it. If the owner does restore it, the usufruct revives to the same extent. Where compensation is paid, the owner or the holder must restore the property as far as the compensation allows.
If restoration becomes impossible, the usufruct ends. The compensation is then divided between owner and holder in proportion to their losses. The same rules apply to compulsory purchase and to partial destruction.
Return of the property
When the usufruct ends, Section 1420 requires the holder to return the property to the owner. The holder is liable for destruction or loss of value unless the holder proves it was not his fault. Property used up improperly must be replaced. The holder owes no compensation for depreciation caused by reasonable use.
One-year limit on claims
Section 1428 bars claims between the owner and the holder, or the holder’s transferee, brought more than one year after the usufruct ends. If the owner could not have known when the usufruct ended, the year runs from the date the owner knew or ought to have known.
Usufruct in Thailand Versus the Right of Habitation
The two rights share the same thirty-year ceiling, yet they treat a missing term in opposite ways. A usufruct without a fixed term is presumed to last for the holder’s life (Section 1418). A right of habitation without a fixed term may be ended at any time, on reasonable notice to the dweller (Section 1403).
The scope also differs. Habitation is a right to live in a building. Usufruct covers possession, use, income and management of land or buildings. For a person who needs both a home and the income of the property, the usufruct is the wider instrument. For long-term structures on another person’s land, see our guide to the 30-year lease in Thailand, and for shared ownership, our note on co-ownership in Thailand.
Frequently Asked Questions
How long can a usufruct in Thailand last?
Must a usufruct be registered?
Can a usufruct be inherited?
Can the holder rent out the property?
Who pays for repairs and land tax?
Planning a Usufruct in Thailand
A usufruct in Thailand separates the use and income of property from its ownership for a defined period or a lifetime. The Civil and Commercial Code fixes the core rules: a thirty-year ceiling for fixed terms, termination on death, and a clear split of costs and repairs. Therefore, the registered instrument should settle the term, transfer rights and cost allocation from the outset. Our real estate lawyers in Thailand advise owners and holders on these rights. The Code is available from the Office of the Council of State, and registration is handled by the Department of Lands.
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