What is the Sap-Ing-Sith Act?
The Sap-Ing-Sith Act B.E. 2562 (2019) — in English, the Property-Based Right Act — is a Thai statute enacted in 2019 that created an entirely new category of registrable property right. Unlike a regular lease, a Sap-Ing-Sith right is recorded directly on the Land Office title deed (Chanote) and recognized as a real property interest, not a personal contract.
The Act was published in the Royal Thai Government Gazette in 2019 and brought into force the same year. It is part of a broader Thai effort to create transparent, transferable property instruments that meet international expectations — while staying within the constitutional restrictions on foreign land ownership.
Key features of Sap-Ing-Sith rights
Real property right (in rem)
Binds the land itself, not just the contracting parties. Survives any change of ownership.
Registered on the Chanote
Inscribed directly on the title deed at the Land Office — same instrument as the freehold registration.
Transferable
The right-holder can sell, gift, or assign the right without requiring landlord consent.
Inheritable by statute
Passes automatically to heirs for the remainder of the registered term — not contested as with leases.
Mortgageable
Can be pledged as security for a loan, including with Thai banks.
30-year statutory term
A clean, single term defined by the Act — no fragile “30+30+30” renewal contracts.
Why does Sap-Ing-Sith exist?
For decades, foreign investors in Thailand had two flawed options:
- 30-year lease (Chao) — a personal contract right, often non-transferable, not heritable as a property interest, and not usable as collateral.
- 51/49 Thai-majority company — technically legal in form, but in practice almost always involved nominee shareholders who held shares for the foreign investor. Section 113 of the Land Code treats this as a forbidden circumvention of the foreign ownership prohibition.
Sap-Ing-Sith was designed to give foreign capital a clean third path: a real property right, registered transparently, with no need for nominees or fragile renewal promises.
Sap-Ing-Sith vs. 30-Year Lease vs. 51/49 Company
| Feature | Sap-Ing-Sith | 30-year Lease | 51/49 Company |
|---|---|---|---|
| Legal nature | Real property right (in rem) | Personal contract (in personam) | Indirect via corporate shareholding |
| Registered on title? | Yes, directly on Chanote | Optional annotation only | No — held via shares |
| Transferable | Freely | Needs landlord consent | Yes, but corporate-level transfer |
| Heritable | Yes, by statute | Contested | Inherits shares, not the land |
| Mortgageable | Yes | No | Difficult in practice |
| Compliance risk | None — statutory | None, but limited rights | High — nominee exposure |
| Term | 30 years statutory | 30 years max | Indefinite (while company exists) |
Who can use the Sap-Ing-Sith Act?
The Act is open to any natural or legal person, Thai or foreign. For foreigners, it is the most direct legal route to hold registered rights over Thai land in their own personal name — without acquiring freehold (which remains restricted) and without resorting to nominee structures.
How long is the Sap-Ing-Sith right valid?
The Act sets the maximum registered term at 30 years from registration. During this term the right is fully heritable, transferable, and protected as a real property interest under Thai law.
What happens at the end of the 30-year term?
At the end of the term, the right ends and the freehold owner regains unencumbered title. Within the United Grace structure, our 100%-compliant Thai entity continues as freehold owner; on Tracks A and B, customers have already received 30 years of effective ownership at the agreed price. The legal product is identical across all three pricing plans — only the payment schedule differs.
Sap-Ing-Sith costs at the Land Office
Land Office registration involves three Thai government fees:
- Transfer fee — typically 2% of the registered value, by Thai custom split 50/50 between the parties.
- Stamp duty — 0.5% of the registered value.
- Sap-Ing-Sith registration fee — a fixed Land Office fee for inscribing the right on the Chanote.
These fees are independent of any service fee charged by United Grace.
Want the full legal analysis?
Download our 40-page memorandum on the Sap-Ing-Sith framework and its application to foreign investors.
Independent sources
- Royal Thai Government Gazette — Property-Based Right Act B.E. 2562 (2019)
- Department of Lands, Ministry of Interior — Sap-Ing-Sith registration procedures
- Land Code of Thailand — Section 113 (forbidden circumvention)
- Thai Civil and Commercial Code — Sections 537–571 (lease provisions)