Thai law allows for various legal methods to give “grantees” a right to use real estate, (referred to as “immovable property” under Thai real estate law) as leases, superficies (allowing the grantee to own buildings and other structures on land), usufructs (allowing the grantee the possession of, use of, or enjoyment of the benefits of an owner’s land), and habitation (allowing the grantee to reside on another’s land).
Some of the pitfalls of these rights for a grantee are that they are not easily transferable to third parties and are not readily available as collateral for a loan since the consent of the landlord is normally required.
A new type of real estate right has been created that may assist in providing more expansive rights to grantees.
The new right is known as a “Sap-Ing-Sith”. In addition to using the underlying property as they would under a normal lease, holders of a Sap-Ing-Sith can also transfer the right to a third party or use it as collateral for a loan without the need to obtain consent from the landlord.
Only land covered by a Chanote (a title deed in Thailand land law), buildings constructed on Chanote, and condos can benefit from a Sap-Ing-Sith.
A Sap-Ing-Sith is created by an agreement by the landlord and grantee in writing. The period of a Sap-Ing-Sith can last up to 30 years and must be registered with a Thailand land office, which will in turn issue a Sap-Ing-Sith certificate.