The right of superficies in Thailand legally separates ownership over the building and the land

The Right of Superficies is used when you build upon land you do not own. The right of superficies is a transferable and inheritable interest in land for a specified term. The right of superficies creates ownership over the building upon land owned by another person and may be established either for a period of time up to 30-years, or for life of the owner of the land or the superficiary.

Right of Superficies in Thailand

The right of superficies is obtained by agreement with the land owner and must, similar to a usufruct agreement, be registered on the land title deed to be enforceable.

The right of superficies can be registered as a separate right or in combination with a land lease. As a registered property right it follows the freehold title of the land and is enforceable against third parties and future owners of the land. The right of superficies is not extinguished by transfer of ownership of the land.

• Read ups: Sample Contract Right of Superficies

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Civil and Commercial Code Thailand

RIGHT OF SUPERFICIES

Section 1410. The owner of a piece of land may create a right of superficies in favour of another person by giving him the right to own, upon or under the land, buildings, structures or plantations.

Section 1411. Unless otherwise provided in the act creating it, the right of superficies is transferable and transmissible by way of inheritance.

Section 1412. A right of superficies may be created either for a period of time or for life of the owner of the land or the superficiary.

If it is created for a period of time, the provisions of Section 1403 paragraph 3 shall apply mutatis mutandis

Section 1413. If no period of time has been fixed, the right of superficies may be terminated at any time by any partner giving reasonable notice to the other. But when rent is to be paid, either one year's previous notice must be given or rent for one year paid.

Section 1414. If the superficiary fails to comply with essential conditions specified in the act creating superficies or, when rent is to be paid, he fails to pay it for two consecutive years, his right of superficies may be terminated.

Section 1415. The right of superficies is not extinguished by destruction of the buildings, structures or plantations even if caused by force majeure.

Section 1416. When the right of superficies is extinguished, the superficiary may take away his buildings, structures or plantations, provided he restores the land to its former condition.

If instead of permitting the removal of the buildings, structures or plantations, the owner of the land notifies his intention to buy the at a market value, the superficiary may not refuse the offer except on reasonable ground.