Enforceability of a rental with a fixed term and consecutive leases

Thai Lease Registration


Under property rental and lease laws in Thailand any property lease (rental with a fixed term) exceeding 3 years must be in writing and recorded on the land ownership title deed (land or condominium title deed) as kept in the registers of the provincial or local land office section 538 Civil and Commercial CodeThai law translation section 538 Civil Code: 'A hire of immovable property is not enforceable by action unless there be some written evidence signed by the party liable. If the hire is for more than three years or for the life of the letter or tenant, it is enforceable only for three years unless it is made in writing and registered by the competent official'. If the lease agreement between the parties is not registered with the Land Department the lease is enforceable by legal action for a 3 year term only. The term of a registered lease agreement cannot exceed 30 years (section 540 Thai law translation section 540 Civil and Commercial Code: 'The duration of a hire of immovable property cannot exceed thirty years. If it is made for a longer period, such period shall be reduced to thirty years. The aforesaid period may be renewed, but it must not exceed thirty years from the time of renewal.') and is automatically extinguished at the end of the registered term (section 564Thai law translation section 564 Civil and Commercial Code: 'A contract of hire is extinguished at the end of the agreed period without notice.' In Thai: มาตรา 564 อันสัญญาเช่านั้น ท่านว่าย่อมระงับไปเมื่อสิ้นกำหนด เวลาที่ได้ตกลงกันไว้ มิพักต้องบอกกล่าวก่อน ). A short term contract does not have to be registered but must be in writing to be enforceable by legal action.

lease agreement text Thai and English script

The land offices in Thailand only use Thai language and Thai script documents (like their own official Thai script lease contract registration form), even the foreigner's name in the contract is written in Thai script. The lease between the parties must be drawn up in the Thai language but may contain a translation in another language.

Land department issued ownership deedIn practice a lease can only be registered over land with a confirmed right of possession or freehold ownership title deed (land with a title). A long term condominium apartment lease in a licensed condominium is registered with the local land office where the condominium is located and will be noted on the backside of condominium unit ownership title deed (image right). A lease agreement of a unit in an apartment building not registered under the Condominium Act will be registered as a lease over part of the building on the land title deed and specified in the plan of the building read more...

Lease registration fee

A lease registration fee shall be collected by the provincial or local land office at the rate of 1% of the total rental throughout the lease term. Rental shall include the remuneration for the lease, the remuneration during the construction, the key money, the fee for the land's survey, the construction cost contribution or other amount of money paid by the lessee to the lessor for the lease benefits. Stamp duty shall be collected on the registration of the lease at the rate of 0.1% of the total rental throughout the lease term.

Land Office lease

When the lease is registered the Land Office will require the lessee and lessor to sign an additional official land office lease form. A 1 page document with the government Garuda symbol, in winch they must refer to the lease between the parties. The actual lease between the parties will be attached to the official form and a copy is held by the Land Registry (see sample).

Content of the registered lease

The written content of a registered lease can be divided into rights given under lease of property laws and rights based on general contract law and the freedom of contract between the parties. The practical importance of the two relates to the future enforceability of contract promises and obligations in a contract, especially in case ownership of the property is transferred during the term of the lease read more...

Practical questions about lease term and lease registration

Is an office rent with a term of 5 years (split in a 3 year term with another 2) enforceable for the term of 5 years?

I have signed 3 consecutive back-to-back 3 year lease agreements, is this enforceable for the total of 9 years?

The Phuket land office has registered 2 consecutive back-to-back 30 year leases over a property. How legal is this?

Can a lease protect me when I register ownership of land in my Thai girlfriends name and can a lease give me the right to transfer to ownership?

Can a lease agreement protect me (foreign) when a property is registered in my wife's (Thai) name?

  • Leasing real estate from your Thai wife has several practical problems (payment of rent, income tax). The main reason this structure does not offer protection is that any agreements between you and your wife entered into during marriage can be voided (section 1469 Civil and Commercial Code) and the Land Offices in Thailand generally refuse for this same reason registration of a lease between husband and wife. A right of superficies or right of usufruct may offer a better protection.

lease agreement