Section Code: 1417 - 1428
Thai Civil and Commercial Code
Section 1417. USUFRUCT - Right to enjoy use and fruits of another’s property
An immovable property may be subjected to a usufruct by virtue of which the usufructuary is entitled to the possession, use and enjoyment of the property.
He has the right of management of the property.
The usufruct of a forest, mine or quarry entitles the usufructuary to the exploitation of the forest, mine or quarry.
Section 1418. If no time limit, Usufruct is presumed to be Lifetime.
A usufruct may be created either for a period of time or for the life of the usufructuary. If no time has been fixed, it is presumed that the usufruct is for the life of the usufructuary.
Section 1419. Destruction of Property
If property is destroyed without compensation being paid, the owner is not bound to restore it; but, if he does so to any extent, the usufruct revives to that extent.
If any compensation is paid, the owner or the usufructuary must restore the property so far as it is impossible to do so, having regard to the amount of the compensation received, and the usufruct revives to that extent; but, if restoration is impossible, the usufruct come to an end and the compensation must be divided between the owner and the usufructuary in proportion to the damages suffered by them respectively.
The same rules apply mutatis mutandis in case of expropriation as well as in case of partial destruction of the property or of partial impossibility to restore the property.
Section 1420. End of Usufructuary
When usufruct comes to an end, the usufructuary must return the property to the owner.
The usufructuary is liable for the destruction or depreciation in value of the property, unless he proves that the damage was not caused by his fault.
He must replace anything which he has wrongfully consumed.
He is not bound to give compensation for depreciation in value caused by reasonable use.
Section 1421. Ordinary Care of Property
The usufructuary must, in the exercise of his rights, take as must care of the property as a person of ordinary prudence would take of his own property.
Section 1422. Transfer of Usufructuary
Unless otherwise provided in the act creating the usufruct, the usufructuary may transfer the exercise of his right to the third person. In such case the owner of the property may sue the transferee direct.
Section 1423. Objection to Unlawful or Unreasonable Use
The owner may object to any unlawful or unreasonable use of the property.
If the owner proves that his rights are in peril, he may demand security from the usufructuary, except in the case of donor who has reserved to himself the usufruct of the property given.
If the usufructuary fails to give security within a reasonable time fixed for the purpose, or if, in spite of the owner's objection he continues to make use of the property unlawfully or unreasonably, the Court may appoint a Receiver to manage the property in his stead. Upon security being given the Court may release the Receiver so appointed.
Section 1424. Maintaining Property
The usufructuary is bound to keep the substance of the property unaltered, and is responsible for ordinary maintenance and pretty repairs.
If important repairs or measures are necessary for the preservation of the property, the usufructuary must forthwith inform the owner thereof and permit them to be carried out. In case of default by the owner, the usufructuary may have the work carried out at the owner's expense.
Section 1425. Extraordinary Expenses
All extraordinary expense must be borne by the owner, but in order to meet these or expenses coming under the foregoing section he may realize part of the property unless the usufructuary is willing to advance the necessary funds without charging interest.
Section 1426. Expenses for Management of Property
The usufructuary shall, for the duration of the usufruct, bear expenses for the management of the property, pay taxes and duties, and be responsible for interests payable on debts charged upon it.
Section 1427. Insurance
If required by the owner, the usufructuary is bound to ensure the property against loss for the benefit of the owner; and if the property is already insures he is bound to renew such insurance when due He must pay the premiums of the insurance for the duration of his usufruct.
Section 1428. Statute of Limitations
No action by the owner against the usufructuary or his transferee in connection with the usufruct or vice versa may be entered later than one year after the usufruct comes to an end. But in an action by the owner who could not have known of the end of the usufruct, the prescription of one year shall run from the time when he knew or ought to have known of it.