What Is Sap-Ing-Sith? This is a question frequently asked to our lawyers—who specialize in foreign real estate investment—by individuals, investors and clients in southern Thailand, islands, or rural areas. Given the growing interest in the Thai legal concept known as “Sap-Ing-Sith,” our law firm in Thailand, Herrera and Partners (H&P), has prepared a comprehensive overview of this registered property right, which we utilize to protect our foreign clients.
The ownership and use of real estate in Thailand are important considerations for both Thai and foreign investors. This is particularly relevant to foreign nationals who wish to secure long-term residential or other property-use arrangements in Thailand but are subject to restrictions on land ownership under Thai law.
One legal mechanism worth considering is “Sap-Ing-Sith”, a property right established under the Sap-Ing-Sith Act B.E. 2562 (2019). The legislation was introduced to provide greater flexibility in the use of real estate and to establish a more secure and transferable form of property right, which may also be used as collateral, offering certain advantages over conventional leasehold arrangements.
Sap-Ing-Sith is a statutory property right recognized under Thai law. It grants the holder the right to use and benefit from the relevant property in a manner broadly comparable to that of an owner, subject to the scope and conditions prescribed by law. However, it is important to understand that holding a Sap-Ing-Sith does not confer ownership of the underlying land. Rather, it creates a separate legal right distinct from the ownership rights retained by the property owner.
Applicable Legislation and Properties Eligible for Sap-Ing-Sith Registration
The principal legislation governing Sap-Ing-Sith is the Sap-Ing-Sith Act B.E. 2562 (2019), which provides that the following types of immovable property may be subject to the establishment of a Sap-Ing-Sith:
- Land held under a Chanote (Nor Sor 4 Jor) title deed;
- Land together with buildings or structures situated thereon, provided that the land is held under a Chanote title deed; and
- Condominium units registered under the Condominium Act.
The establishment of a Sap-Ing-Sith must be registered with the competent official at the relevant Land Office. Upon registration, the official will record the establishment of the right on the relevant land title deed or condominium unit title deed and issue a certificate of Sap-Ing-Sith to the property owner.
An important consideration is that a Sap-Ing-Sith cannot be established over only part of the immovable property covered by a land title deed or condominium unit title deed. Accordingly, a thorough examination of the title documents and the precise scope of the property is essential before proceeding with registration.
Duration and Rights of the Sap-Ing-Sith Holder
A Sap-Ing-Sith may be established for a period of up to 30 years, with the applicable duration required to be specified at the time of registration.
Following registration, the Sap-Ing-Sith holder is entitled to use and benefit from the property in accordance with the rights specified in the Sap-Ing-Sith certificate. The holder is also granted rights, duties and liabilities in relation to the property broadly equivalent to those of an owner, subject to the exceptions prescribed by law.
For example, the holder may utilize the property for residential purposes or other activities permitted by applicable laws and the conditions of registration and is responsible for the obligations associated with such use.
Nevertheless, the rights of a Sap-Ing-Sith holder do not extend to the right to recover possession of the property from a person who has no lawful right to possess it, or to prevent unlawful interference by third parties. Such rights remain vested in the property owner. In such circumstances, the Sap-Ing-Sith holder is required to notify the property owner immediately.
Transfer, Mortgage and Inheritance
One of the key advantages of Sap-Ing-Sith, particularly when compared with conventional leasehold rights, is that it may be transferred, mortgaged and inherited.
In particular, a Sap-Ing-Sith holder may exercise the following rights:
(1) Transfer of Rights: The holder may transfer the Sap-Ing-Sith to another person without generally requiring the consent of the property owner, subject to the applicable statutory requirements and conditions.
(2) Mortgage: The holder may mortgage the Sap-Ing-Sith as security for the repayment of a debt in accordance with the Thai Civil and Commercial Code. This provides an additional financing option for individuals who wish to utilize their property rights as collateral.
(3) Inheritance: A Sap-Ing-Sith may be inherited by the holder’s legal heirs in accordance with Thai inheritance laws, allowing the holder to incorporate the right into their estate and succession planning.
Any juristic act relating to a Sap-Ing-Sith must be made in writing and registered with the competent official in accordance with applicable law.
Restrictions and Key Considerations Before Establishing a Sap-Ing-Sith
Although Sap-Ing-Sith offers several advantages, prospective holders and investors should carefully consider the applicable legal restrictions and potential risks before proceeding.
First, if the property is subject to an existing mortgage, has been provided as security under the Business Security Act, or is otherwise subject to registered rights or encumbrances, the establishment of a Sap-Ing-Sith requires prior written consent from the mortgagee, secured creditor or relevant rights holder, as applicable.
Second, although the property owner may continue to transfer ownership of the property to another person following the establishment of a Sap-Ing-Sith, the owner may not create additional real rights over the property without obtaining the prior written consent of the Sap-Ing-Sith holder.
Third, upon the termination of a Sap-Ing-Sith, ownership of any buildings or structures newly constructed, modified or extended by the Sap-Ing-Sith holder on the property will vest in the property owner, unless otherwise agreed between the parties. This principle does not apply to arrangements concerning condominium units under the Condominium Act.
Furthermore, investors should ensure that their intended use of the property complies with all applicable laws and regulations, including building control laws, town planning regulations and laws governing business operations. The establishment of a Sap-Ing-Sith does not exempt the holder from obtaining any licenses, permits or approvals that may be required under other applicable legislation.
Herrera and Partners’ Legal Perspective
In the view of our Thai real estate lawyers at Herrera and Partners H&P, Sap-Ing-Sith represents a potentially attractive legal option for individuals seeking to enjoy long-term use and benefits from real estate in Thailand, particularly foreign investors who require greater flexibility than that typically available under conventional leasehold arrangements.
Its transferable, mortgageable and inheritable nature distinguishes Sap-Ing-Sith from ordinary leasehold and usufruct rights under the Thai Civil and Commercial Code. Nevertheless, it is essential to emphasize that Sap-Ing-Sith does not constitute ownership of the underlying immovable property and should not be regarded as a legal mechanism through which foreign nationals may directly acquire ownership of land in Thailand.
Before entering into any transaction, prospective investors should conduct thorough legal due diligence on the property, examine any existing encumbrances and registered rights, carefully consider the terms governing the use, transfer and termination of the Sap-Ing-Sith, and ensure that the agreements between the property owner and the rights holder adequately address all relevant matters.
Our Bangkok law firm, Herrera and Partners provide comprehensive legal advice and assistance in relation to real estate investments and transactions in Thailand, including property due diligence, the establishment and registration of Sap-Ing-Sith rights, and the preparation of related legal agreements. Our objective is to help clients structure their property transactions with confidence while ensuring compliance with applicable Thai laws and regulations.
If you want to consult our property lawyers in Thailand about “Sap-Ing-Sith”, please send us an email for a legal consultation at info@herrera-partners.com
