For foreigners who wish to own a home or make use of real estate in Thailand, direct ownership of land is subject to restrictions under Thai law. However, Thai law also provides other forms of rights over real estate that can be registered with the Land Office.
One such option is Sap-Ing-Sith, a right recognized under Thai law that can be registered with the Land Office. The right holder is entitled to possess, use, and benefit from the real estate within the scope of the rights established and registered.
For foreigners, this provides an alternative structure that allows them to possess and use land in Thailand without directly holding ownership of the land, while entering into the transaction and holding the registered right in their own name in accordance with Thai law.
What is Sap-Ing-Sith?
Sap-Ing-Sith is a right over real estate that can be registered with the Land Office. The right remains attached to the real estate for the period specified in the Sap-Ing-Sith certificate.
Unlike an ordinary lease, which is a personal right arising from a contractual relationship between a lessor and a lessee, Sap-Ing-Sith is a statutory right that can be registered and transacted directly. This may include the transfer of the Sap-Ing-Sith right and, where permitted by law and the applicable conditions, the right may also be mortgaged or used as security.
The Flexibility of Sap-Ing-Sith
One of the key advantages of Sap-Ing-Sith is the flexibility it can provide for the commercial and financial use of real estate.
- Possession and use – The right holder may possess and use the real estate within the scope and conditions registered with the Land Office.
- Transfer of rights – The Sap-Ing-Sith right may be transferred to another person subject to the requirements prescribed by law.
- Use as security – Where permitted by law, the right holder may mortgage or otherwise use the Sap-Ing-Sith right as security.
- Business structuring – As the right can be registered and transactions can be conducted in respect of the right, it provides greater flexibility in structuring the use of real estate to suit the commercial and financial objectives of the right holder.
Once a Sap-Ing-Sith right has been established, the right remains attached to the relevant real estate for the registered period, even if ownership of the land subsequently changes.
Sap-Ing-Sith for Foreigners
For foreigners, Sap-Ing-Sith is particularly relevant because the structure allows the foreigner to be the contracting party and registered right holder directly, within the framework of Thai law.
This means that foreigners can directly enter into the transaction and hold the relevant right over the real estate, without having to structure the arrangement through another person. This provides a legally recognized route for foreigners to possess and use real estate in Thailand, without taking on unnecessary legal risks arising from structures that may raise issues concerning foreign ownership or possession of land.
By conducting the transaction directly in the name of the right holder, the rights and obligations of the parties are clearly established, and the right holder is protected by the rights recognized under Thai law and by the terms registered with the Land Office.
How Long Does Sap-Ing-Sith Last?
Generally, a Sap-Ing-Sith right may be established for a period of up to 30 years, as prescribed by law.
Accordingly, where the intended use of the real estate is for long-term investment, the purchaser should carefully consider the duration of the right, the scope of use, transferability, ability to use the right as security, and the conditions governing the expiry of the right before entering into the transaction.
Conclusion
Sap-Ing-Sith is a real estate right recognized under Thai law and capable of registration with the Land Office. It provides an alternative for foreigners who wish to possess and use real estate in Thailand without directly owning the land.
In addition to the right to possess and use the property, Sap-Ing-Sith offers flexibility in terms of transfer, business structuring, and the use of the right as security, subject to the conditions prescribed by law.
Importantly, foreigners can enter into the transaction and hold the registered right directly in their own name under a structure recognized by Thai law. This provides a clear legal framework for the parties and avoids the need to assume unnecessary legal risks associated with arrangements that may raise issues concerning the rights of foreigners to possess or use land in Thailand.
The specific rights registered under a Sap-Ing-Sith arrangement are therefore important. Purchasers should carefully review the title documents, conditions of use, duration, transferability, and ability to use the right as security before entering into the transaction, to ensure that the Sap-Ing-Sith structure is consistent with their intended use or long-term investment objectives.
Disclaimer : This article is provided for general informational purposes regarding Sap-Ing-Sith under Thai law as of the date of publication. It is not intended to constitute legal advice or a legal opinion in relation to any specific matter or transaction. The rights, conditions, and procedures for establishing and registering Sap-Ing-Sith may vary depending on the facts and circumstances of each case, the nature of the real estate, the title documents, the terms agreed between the parties, and the requirements of the relevant authorities. Anyone considering entering into a transaction involving Sap-Ing-Sith should obtain appropriate legal advice and conduct a case-specific review of the relevant facts and documents before proceeding. The information contained in this article may be subject to change as a result of amendments to applicable laws, regulations, or the practices and requirements of the relevant authorities.
Call 020556212
Email : contact@w-lawthai.com
Line @wlaw
W Law and Real Estate International (Thailand) Co., Ltd.
- Bangkok Office: 518/3 4th Floor, Maneeya Center North Building, Ploenchit Road, Lumpini, Pathumwan, Bangkok Metropolis 10330
- Phuket Office: 63/202 Moo 2 Royal Phuket Marina, Thepkasattri Road, Kohkaew, Muang Phuket, Phuket Province 83000
- Pattaya Office: 666/66 Level 3 Conventional Hall Brighton Grand Hotel Pattaya, Moo 5, Naklua, Banglamung, Chonburi Province 20150
