Although foreign individuals are prohibited from owning land in Thailand, there is a legal option for them to enjoy the benefits of land ownership. A Thai usufruct is an agreement in which one party confers upon another, full enjoyment of a Thai property. The holder of the Thai usufruct does not hold the title deed to the property and cannot sell it, but can utilize the property as she/he likes. This agreement can be drafted for the lifetime of the holder of the Thai usufruct, giving her/him rights nearly identical to the owner. However, the Thai usufruct cannot be transferred, and upon the death of the holder, the agreement would extinguish.
Mahanakorn Partners Group’s lawyers can help draft a Thai usufruct agreement that ensures the rights and duration that the foreign holder intends.