This is an unofficial English translation prepared for general informational purposes only. It has no legal force. For the authoritative text, refer to the official Thai version published in the Royal Gazette.
Official Thai text: Sap-Ing-Sith Act B.E. 2562 (2019) — Royal Gazette, Volume 136, Part 56 ก, 30 April 2019
For a practical analysis of how Sap-Ing-Sith works, its limitations, and comparison with long-term lease, see: Sap-Ing-Sith: Thailand’s Registered Use Right — A Practical Guide
SAP-ING-SITH ACT, B.E. 2562 (2019)
His Majesty King Maha Vajiralongkorn Bodindradebayavarangkun
Given on the 26th Day of April B.E. 2562 (2019)
Being the 4th Year of the Present Reign
His Majesty King Maha Vajiralongkorn Bodindradebayavarangkun is graciously pleased to proclaim that:
Whereas it is deemed expedient to have a law on Sap-Ing-Sith;
His Majesty is therefore graciously pleased to enact this Act, by and with the advice and consent of the National Legislative Assembly acting as the Parliament, as follows:
Section 1
This Act shall be called the “Sap-Ing-Sith Act, B.E. 2562 (2019)”.
Section 2
This Act shall come into force after the expiration of one hundred and eighty days from the date of its publication in the Royal Gazette.
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Section 3 — Definitions
In this Act:
“Sap-Ing-Sith” means property derived from the right of utilization in an immovable property as prescribed under this Act.
“Immovable Property” means land with a land title deed, land together with structures built on land with a land title deed, and condominium units under the law on condominiums.
“Competent Official” means a competent official under the Land Code and a competent official under the law on condominiums.
Section 4 — Establishment
Any owner of immovable property who wishes to establish a Sap-Ing-Sith shall submit an application to the Competent Official together with the land title deed or the condominium ownership certificate, as the case may be.
A Sap-Ing-Sith may be established for a duration of not exceeding thirty years.
The establishment of a Sap-Ing-Sith over only a part of the immovable property covered under a single land title deed or condominium ownership certificate shall not be permitted.
The establishment of a Sap-Ing-Sith over an immovable property subject to a mortgage, used as collateral under the law on business collateral, or encumbered by any registered right on the land title deed or condominium ownership certificate, may be executed only upon obtaining written consent from the mortgagee, the collateral holder, or the holder of such right, as the case may be.
Section 5 — Certificate of Sap-Ing-Sith
Upon receiving an application under Section 4, the Competent Official shall register the establishment of the Sap-Ing-Sith on the land title deed or the condominium ownership certificate, as the case may be, and issue a Certificate of Sap-Ing-Sith.
The Certificate of Sap-Ing-Sith shall be executed in duplicate. One copy shall be delivered to the owner of the immovable property, and the other copy shall be retained at the office of the Competent Official.
Section 6 — Ministerial Regulations
The application under Section 4, the registration and issuance of the Certificate of Sap-Ing-Sith under Section 5, the cancellation of a Sap-Ing-Sith under Section 14, and the revocation of a Certificate of Sap-Ing-Sith shall comply with the rules, procedures, and conditions prescribed in the Ministerial Regulations.
Section 7 — Replacement Certificate
In the event that a Certificate of Sap-Ing-Sith is lost or materially damaged, the holder of the Sap-Ing-Sith may apply for a substitute copy of the Certificate of Sap-Ing-Sith in accordance with the rules prescribed in the Ministerial Regulations.
Once a substitute copy of the Certificate of Sap-Ing-Sith has been issued, the original Certificate of Sap-Ing-Sith shall be deemed cancelled.
Section 8 — Indivisibility
A Sap-Ing-Sith is indivisible.
Land upon which a Sap-Ing-Sith has been established shall not be subdivided into several plots or merged with other land plots into a single plot.
Section 9 — Restrictions on Other Real Rights
Once a Sap-Ing-Sith has been established over any immovable property, the owner of the immovable property shall not establish any real right (right in rem) over such immovable property, unless written consent has been obtained from the holder of the Sap-Ing-Sith.
The provisions of paragraph one shall not affect the right of the owner of the immovable property to transfer ownership of the immovable property to another person, or to use the ownership of the immovable property as security for the performance of an obligation by mortgage or as collateral under the law on business collateral.
Section 10 — Right of Utilization
The holder of a Sap-Ing-Sith has the right to utilize the immovable property upon which the Sap-Ing-Sith is established under this Act and as specified in the Certificate of Sap-Ing-Sith.
In this regard, the utilization of the Sap-Ing-Sith must be carried out in compliance with the laws governing such matters.
Section 11 — Rights, Duties and Liabilities of the Holder
The holder of a Sap-Ing-Sith shall have the rights, duties, and liabilities in respect of the immovable property upon which the Sap-Ing-Sith is established as if they were the owner of the immovable property, except that the following rights shall remain vested in the owner of the immovable property:
- The right to pursue and recover (revendication) the immovable property from any person who has no lawful right to possess it; and
- The right to prevent others from unlawfully interfering with such immovable property.
The holder of the Sap-Ing-Sith must promptly notify the owner of the immovable property upon the occurrence of either event mentioned above.
Ownership over any buildings or structures modified, extended, or newly constructed by the holder of the Sap-Ing-Sith on the immovable property shall vest in the owner of the immovable property upon the termination of the Sap-Ing-Sith, unless otherwise agreed upon by the owner of the immovable property and the holder of the Sap-Ing-Sith.
The provisions of paragraph three shall not apply to actions taken regarding condominium units under the law on condominiums.
Section 12 — Transfer, Mortgage and Inheritance
A Sap-Ing-Sith may be transferred to another person or used as security for the performance of an obligation by mortgage under the Civil and Commercial Code.
A Sap-Ing-Sith is inheritable by succession.
Any juristic act relating to a Sap-Ing-Sith must be made in writing and registered with the Competent Official. Upon registration, the Competent Official shall promptly notify the owner of the immovable property in writing, in accordance with the types of juristic acts and rules prescribed in the Ministerial Regulations.
Section 13 — Protection of Third Parties on Transfer
In the event that a Sap-Ing-Sith is transferred and a breach of contract occurs between the transferor and the transferee resulting in the rescission of the contract by either party, such contract rescission shall not affect the rights of a third party who has acted for valuable consideration, in good faith, and has registered their right in good faith.
Section 14 — Cancellation Before Expiry
An owner of immovable property who is the holder of the Sap-Ing-Sith may cancel the Sap-Ing-Sith prior to the expiration of its term, except where such cancellation would affect the rights of a third party who has acted for valuable consideration, in good faith, and has registered their right in good faith.
Section 15 — Return of Property on Termination
Upon the termination of a Sap-Ing-Sith, the holder of the Sap-Ing-Sith shall return the immovable property to the owner of the immovable property in its existing condition at that time, unless otherwise agreed upon by the owner of the immovable property and the holder of the Sap-Ing-Sith.
Section 16 — Fees and Local Revenue Allocation
The issuance of a Certificate of Sap-Ing-Sith, the registration of juristic acts, or any other proceedings regarding a Sap-Ing-Sith shall be subject to fees and expenses as prescribed in the Ministerial Regulations, but shall not exceed the rates specified in the schedule annexed to this Act.
The Department of Lands shall deduct five percent of the collected fees as administrative expenses.
The fees collected under this Act, after the deduction of expenses under paragraph two, shall belong to the municipality, subdistrict administrative organization, Bangkok Metropolitan Administration, Pattaya City, or other local administrative organization established by law, for operations relating to immovable property having a capital value within its jurisdiction.
Section 17 — Minister of Interior
The Minister of Interior shall have charge and control of the execution of this Act and shall have the power to issue Ministerial Regulations prescribing fees and expenses not exceeding the rates at the end of this Act, including fee exemptions, and prescribing other matters for the execution of this Act.
Such Ministerial Regulations shall come into force upon their publication in the Royal Gazette.
Countersigned by: General Prayut Chan-o-cha, Prime Minister.
Schedule of Fees and Expenses
| Item | Description | Maximum Rate |
|---|---|---|
| (1) | Registration of the establishment of a Sap-Ing-Sith | 20,000 Baht per time |
| (2) | Issuance of a Certificate of Sap-Ing-Sith or a substitute copy thereof | 10,000 Baht per copy |
| (3)(a) | Registration of the transfer — with capital value | 2% of declared capital value (any fraction of 100 Baht rounded up to 100 Baht) |
| (3)(b) | Registration of the transfer — without capital value | 1,000 Baht per time |
| (4) | Registration of a mortgage | 1% of mortgaged capital value |
| (5) | Registration of the cancellation of a Sap-Ing-Sith | 20,000 Baht per time |
| (6) Miscellaneous Fees | ||
| (6)(a) | Application fee | 200 Baht per copy |
| (6)(b) | Copy or extract of documents | 200 Baht per page |
| (6)(c) | Certification of a copy or extract | 200 Baht per copy |
| (6)(d) | Examination of Sap-Ing-Sith registry records | 200 Baht per copy |
| (6)(e) | Receiving an attachment / seizure registration | 200 Baht per copy |
| (6)(f) | Power of attorney | 500 Baht per matter |
| (6)(g) | Verifying registration records or other data | 200 Baht per copy |
| (6)(h) | Copying from computer storage or electronic/digital media | 500 Baht per sheet |
| (6)(i) | Public notice / announcement | 200 Baht per matter |
| (7) Expenses | ||
| (7)(a) | Notice posting fee (payable to the person posting the notice) | 200 Baht per person |
| (7)(b) | Witness fee (payable to the witness) | 200 Baht per person |
Legislative Note
The rationale for the promulgation of this Act is as follows: Since the lease of immovable property under the Civil and Commercial Code possesses the nature of a personal contractual right (jus in personam) binding specifically between the contracting parties, it entails certain limitations regarding its economic utilization. Furthermore, the lease of immovable property under the law on the lease of immovable property for commercial and industrial purposes has a highly restricted scope of application, rendering it unavailable for use in many circumstances.
It is therefore deemed appropriate to establish “Sap-Ing-Sith” as a real property asset anchored on the right of utilization over an immovable property, which can be freely transferred and designated as security for obligation performance via mortgage. This will directly promote and support real estate investments and drive the country’s overall economic growth. It is therefore necessary to enact this Act.
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- Sap-Ing-Sith: Thailand’s Registered Use Right — A Practical Guide
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Questions about Sap-Ing-Sith or Thai property structures? Contact our team for a consultation.
This translation is provided for general informational purposes only and does not constitute legal advice. For the authoritative text, refer to the official Thai version published in the Royal Government Gazette. Laws and Land Department practice can change. Always obtain independent legal advice before entering into any property transaction in Thailand.
