Sample Agreements Real Estate: Usufruct Contract

Source: Thailand Law Online

AGREEMENT GRANTING THE RIGHT OF USUFRUCT
สัญญาก่อตั้งสิทธิเก็บกิน

This Agreement Granting the Right of Usufruct is made at on the __ day of ____, 2010
สัญญาก่อตั้งสิทธิเก็บกินฉบับนี้ ทำขึ้นเมื่อวันที่ …………………. 2553.

BY AND BETWEEN: โดยและระหว่าง:

Ms. ……………………………, born …………………………… years, Thai nationality with Thai ID card number ……………………………, currently residing at ………,  Moo …………, …………………………… ……… Sub-district, ………………… ……… District, ………………………… Province, hereinafter referred to as the “Owner” of the one part (Copies of ID card and house registration book are attached hereto as Attachment 1 and deemed as a part hereof).

AND และ

Mr. ……………………………, a …………………………… national holding a passport of the …………………………… passport number ……………………………, currently residing at …………………………………………………………,  hereinafter referred to as the “Usufructuary” of the other part (Copy of passport is attached hereto as Attachment 2 and deemed as a part hereof).

In this Agreement the Owner and the Usufructuary hereinafter collectively referred to as the “Parties”.
ในสัญญาฉบับนี้ ทั้ง เจ้าของ และ ผู้ทรงสิทธิเก็บกิน ต่อไปในสัญญาจะรวมเรียกว่า “คู่สัญญา”

WHEREAS โดยที่

1) The Owner is the lawful owner of plot of land holding title Deed no. …………… …, book no. ………, page …………, land no. …………, survey page …………, located at ……………………………  Tambon……………………………, Amphur ……………………………,  ……………………………, which has an area of approximately …………………………… Rai (…………………………… Sq.m.), hereinafter referred to as the “Land” (Copy of the Land title deed is attached hereto as Attachment 3 and deemed as a part hereof).

2) The Owner has received a 100% loan for the money expended on the Land from the Usufructuary.  In consideration for the Usufructuary’s financial loan to the Owner under the terms of a Loan Agreement dated the ____ day of ___, 2010, the Owner agrees to grant the right of usufruct to the Usufructuary and the Usufructuary agrees to take the right of usufruct on the Land.  …………………………… (missing sentence: will be included in the Thai and English template usufruct contract)

NOW AND THEREFORE, the Parties hereby agree as follow:
ดังนั้น คู่สัญญา จึงได้ตกลงกันโดยมีข้อความ ดังต่อไปนี้

CLAUSE 1

The Owner agrees to grant to the Usufructuary and the Usufructuary agrees to take from the Owner the right of usufruct of the Land. By virtue of this usufruct the Usufructuary shall have the rights of possession, use and enjoyment of the Land.

CLAUSE 2

This right of usufruct shall be created for a period of thirty years commencing upon the registration date of usufruct under this Agreement (the “Term”).  The consideration for the right of usufruct is an amount Baht ___ (____ ___ Baht) per annum and shall be due on the __ day of ____ of each calendar year throughout the Term.

The Parties agree to complete with the registration of the right of usufruct by making a written memorandum of statement in accordance with this Agreement with the relevant land office within 30 (thirty) days from the signing date of this agreement.  

The Usufructuary shall pay for the registration fees including stamp duties and other expenses related to the registration of this right of usufruct interest.

CLAUSE 3

In case of the death of the Usufructuary, the Parties agree that the usufruct shall be extinguished and Land shall return to the Owner free of any encumbrances or liability registered against the Land.

CLAUSE 4

The Usufructuary is bound to take as much care of the Land as a person of ordinary prudence would take of his own Property and to do ordinary maintenance and petty repairs.

CLAUSE 5

5.1 …………………………… Missing Clause

5.2 …………………………… Missing Clause (order full sample template usufruct contract for 2,800 baht)

CLAUSE 6

Throughout the Term, the Usufructuary hereby covenants with the Owner as follows:

6.1 Not to use, nor permit the use of, the property or any part thereof for any illegal or unreasonable purposes.
6.2 To pay taxes and duties, and to pay when due, electricity, water and all land and building tax and other levies made against the Property and any future structures on the land.
6.3 The Usufructuary, by his own name and on his favor, may insure the Property against any loss and/or damage and pay the premiums of the insurance for the Term of the right of usufruct. In this event the Usufructuary shall be the beneficiary under the insurance policy unless otherwise agreed by the Parties.
6.4 …………………………… Missing Clause (order full Thai English sample template usufruct contract for 2,800 baht)

CLAUSE 7

The Owner represents and warrants not to take the Land to be a guarantee for any liability, mortgage or otherwise create a liability with or against the land either in whole or in part during the Term of the usufruct, and throughout Term not assign or transfer its rights and obligations under this agreement to any third person or any juristic person, nor transfer the Land to any third party without the prior consent of the Usufructuary. This agreement shall devolve to, and be binding upon, the successors and heirs of the Owner.

CLAUSE 8

As a special condition, the Parties can agree on mutual consent that the Property may be offered for sale. In this case this right of usufruct shall be terminated by the Parties prior or simultaneously with the transfer of the Property to a third party.  The proceeds from the sale of the Property shall be used to repay the outstanding loan amount on the loan dated ____ day of ____, 2010, between the Owner and the Usufructuary. The remaining amount exceeding the outstanding loan amount and investment made by the Usufructuary in the development of the land by the construction of the house shall be divided equally between the parties equally.

CLAUSE 9

8.1 Any provision in this agreement which is void, invalid or unenforceable shall be ineffective only to the extent of such void, invalid or unenforceable provision, without invalidating the remaining provisions and without affecting the validity and enforceability of such provisions in any other jurisdiction.

If one of the Parties fails to comply with this agreement the other party shall have the right to claim damages from the defaulting party (if any).

8.2 This Agreement shall be governed and construed in accordance with the laws of the Kingdom of Thailand.

IN WITNESS WHEREOF, the Owner and the Usufructuary have hereunto executed this agreement in the presence of witnesses on the day, month and year first written above.
เพื่อเป็นหลักฐานของการทำสัญญาดังกล่าว เจ้าของและผู้ทรงสิทธิเก็บกินจึงได้ลงนามในสัญญานี้ต่อหน้าพยานในวัน เดือน ปีที่ปรากฏข้างต้น

Signed By (ลงชื่อ) _____________________________ Owner เจ้าของ              
Ms. ………………… / นางสาว.................................

Signed By (ลงชื่อ) _____________________________Witness พยาน

(…………………………… ……………………………)

Signed By (ลงชื่อ) _____________________________ Usufructuary ผู้ทรงสิทธิเก็บกิน             
Mr. …………………/  นาย.................................

Signed By (ลงชื่อ) _____________________________Witness พยาน            
(…………………………… ……………………………)