Thai right of habitation agreements for foreigners

Source: Thai real estate laws pertaining to the right of habitation

HABITATION under the civil and commercial law of Thailand refers to the right of a person to live in the house of another gratuitously. The right of habitation differs from a usufruct contract  that a the person granted a usufruct is allowed to transfer his rights to a third person, where the right of habitation grants only the use of a property for the residence of the grantee himself and family. A habitation contract refers to the right of dwelling in a house.

The right of habitation is granted gratuitously, otherwise the matter would become 'hire of property'. A right of habitation can be created by last will in Thailand (the owner grants the right of habitation in his last will or testament) or by gift from the owner to a third party. A right of habitation is complete upon registration and endorsement on the title deed at the land office where the property is located.

RIGHT OF HABITATION

Section 1402. A person who has been granted a right of habitation (arsai) in a building is entitled to occupy such building as a dwelling place without paying rent.

Section 1403. A right of habitation may be created either for a period of time or for the life of the grantee.

If no time has been fixed, such right may be terminated at any time by giving reasonable notice to the grantee.

If it is granted for a period of time, the period may not exceed thirty years; if a longer period is stipulated, it shall be reduced to thirty years. The grant may be renewed for a period not exceeding thirty years from the time of renewal.

Section 1404. The right of habitation is not transferable even by way of inheritance.

Section 1405. Unless the right of habitation is expressly limited to be for the benefit of the grantee personally, the members of his family and his household may dwell with him.

Section 1406. Unless expressly forbidden by the grantor, the grantee may take such natural fruits or products of the land as are necessary for the needs of his household.

Section 1407. The grantor is not bound to maintain the property in a good state of repair.

The grantee cannot claim reimbursement of expenses made by him for improvements to the property.

Section 1408. When the right of habitation comes to an end the grantee must return the property to the grantor.

Section 1409. The provisions of this Code concerning Duties and Liabilities of the Hirer, as specified in Sections 552, 555, 558, 562 and 563 shall apply mutatis mutandis.