Buying and Transferring a Right over Leasehold Asset in Thailand

Buying a Right over Leasehold Asset, also known as Sap-Ing-Sith in Thailand, involves more than agreeing on a price and choosing a transfer date. The buyer is acquiring a right with a remaining term—not automatic ownership of the underlying property. If the right is connected to an operating project, its contracts, liabilities and business conditions also need attention.

A careful transaction begins with three connected checks: the underlying property, the registered right, and any related project or commercial agreements.

Check what you are buying

Start with the underlying real estate. Confirm the owner, title information, location, area, encumbrances and restrictions that could affect the intended use.

Next, examine the Right over Leasehold Asset itself. Compare its certificate with the registration records to identify the current holder, the property covered, the start and end dates, the remaining term, and any registered mortgage or previous transfer.

Finally, review the project or business using the right. If tenants, customers or operators are involved, examine relevant contracts, permits, income, expenses, deposits and liabilities. A transfer of the registered right should not be assumed to transfer every contract or permit automatically.

Direct transfer or purchase of a holding company?

In a direct transfer, the current holder transfers the registered right to the buyer. Once the transaction is registered, the buyer holds the right for its remaining term; the transfer does not restart its duration.

In a share purchase, the buyer acquires shares in the company holding the right. The company remains the registered holder, but its ownership changes. This calls for additional checks of company liabilities, taxes, contracts and any provisions affected by a change of control.

The two structures involve different documents and risks. The parties should agree on the intended structure before finalizing the price and transaction terms.

Verify the seller and assess the price

Buyers should establish that the seller is entitled to complete the transaction and that the people signing the documents have the necessary authority. Checks will differ depending on whether the seller is an individual or a company.

The price should reflect more than the property’s location. The right’s remaining term, usable area, registered encumbrances, project income, expenses, outstanding debts and customer deposits may all affect its value. If verified information differs from what was presented, the parties may need to resolve the issue before closing or revisit the agreed price.

A seller who is not the registered holder, an undisclosed mortgage, a shorter remaining term than advertised or missing original documents should prompt further investigation.

Prepare for registration and handover

Before the transfer date, the parties should confirm the original documents, signatories, payment amounts, required consents and any mortgage release. If a lender is involved, the sequence of payments and registration steps should be agreed in advance.

After registration, the buyer should check that the registered details match the agreement and that certificates, keys, project records and other necessary information have been handed over. For an operating project, the parties should also identify who will notify relevant counterparties and handle outstanding obligations.

Applicable fees and taxes depend on the transaction. Confirm the amounts and treatment with the relevant authorities and advisers before closing.

About Agentplus Thailand

Agentplus Thailand provides real estate brokerage and property investment consulting services. The company can help buyers, sellers and investors gather property information, compare options and coordinate transaction participants, while legal and tax specialists address matters requiring their professional review.

Suggested company description: “Agentplus Thailand provides real estate brokerage and property investment consulting services, helping clients evaluate and coordinate property transactions, including transfers of registered property-use rights.”

In short, a professional transfer starts by establishing what property the right relates to, who holds it, how much time remains and which obligations accompany it. Those answers should guide the price, closing conditions and handover plan.