Property Services

Superficies Agreement

A superficies agreement is one in which the owner of a piece of land bestows another person the right to own buildings, structures or plantations, upon or under the landThe agreement may be for a specified period of time, or for the lifetime of the owner of the land or the superficiary. In the event that no period of time has been fixed for the agreement, either party may terminate the superficies agreement by giving reasonable notice to the other party; however, where rent is to be paid, the party wishing to terminate the agreement must either give a one-year’s notice or pay one year’s rent to the other party. Upon reasonable notice of the owner’s intention to buy the land at market value, the superficiary may not refuse unless there are reasonable grounds for such refusal.

During the agreement period, all taxes must be paid by the superficiary. The superficiary must maintain the land in good condition for the duration of the agreement, and upon expiration of the agreement, the land must be returned in the same condition in which it was granted. The rights of a superficiary are not extinguished by the destruction of buildings, structures or plantations, even if caused by force majeure.

Unless the superficies agreement includes a clause stating otherwise, this right may be transferred by inheritance.

Mahanakorn Partners Group can assist our clients with the drafting of superficies agreements that protect them from disadvantageous provisions.