Leasing vs Usufruct

I'm just wondering what is the best way to go with land + house that I will be residing at with my Thai wife. What are advantages to the 30 yr lease vs the usufruct and which is more foolproof. How about a mortgage, is a mortgage + lease possible?

Its about as simple as this:

usufruct: Foolproof. When you die, it dies. You can do it yourself for less than 100 Baht.

30 yr lease: Can be foolproof. Incurs a tax liability, but you can pass it on to your heirs. You may need to have a lawyer put this together.

lease can be cancelled one year after divorce, and yes, mortage the F out of the property in your name.

Lots of useful information here, (though it focusses mainly on the usufruct side of things):-

http://www.udonmap.com/udonthaniforum/v ... php?t=7901

I have a friend that has a ''superfecies'' agreement with a ''right to habitation''agreement for life on his home and land!

He has received opposing info from two different attorneys!One that says he is protected and another that says that he,the attorney, can break the agreement!

Any comments?

Here's another little-known reason why the usufruct is the way to go:

The usufructuary can grant a thirty years lease to a third party. By this way, you could pass on your rights to your children or other relatives even after death if the lease was done before the demise. Do not forget that all leases over 3 years must be registered at the land department and taxes have to be paid.


If a Thai lawyer tells you he can "break" a usufruct agreement you should run.......not walk.......away from this lawyer. No Thai lawyer has yet been able to show me where a usufruct agreement has been rendered invalid in the Thai court system. Not a single case.

agree, i'm guessing the lawyer would love to offer their services to help you.

also, once a 3rd party is involved, it is very hard to even cancel anything, as it effects another party. so if having either, a stipulation of a 3rd party lease helps ensure ex cancelling lease. or so i am told. as always, try to get 'competent representation' and do some reading on your own. much to much info available now.

30 yr lease: Can be foolproof. Incurs a tax liability, but you can pass it on to your heirs. You may need to have a lawyer put this together.

This isn't correct is it? I had heard that the 30 yr lease can't be passed on to heirs.... ie. it dies when you do.

Thanks for all the input it is very helpful!

turbo wrote:

30 yr lease: Can be foolproof. Incurs a tax liability, but you can pass it on to your heirs. You may need to have a lawyer put this together.

This isn't correct is it? I had heard that the 30 yr lease can't be passed on to heirs.... ie. it dies when you do.

Thanks for all the input it is very helpful!

The lease dies upon the death of the lessee; not the lessor.