Lease agreement in Thailand
Because foreigners are normally not allowed to own land in Thailand, many of them wishing to live in Thailand decide to lease a property. The Commercial and Civil Code of Thailand (CCCT) allows any person to lease an immovable property for a maximum period of 30 years. It's under a section HIRE OF IMMOVABLE PROPERTY (section 537 to 571 CCCT).
At section 537 of CCCT states that “A hire of property is a contract whereby a person, called the letter, agrees to let another person, called the hirer, have the use or benefit of a property for a limited period of time, and the hirer agrees to pay a rent therefore
It's basically a legal agreement where the owner (lessor or letter) gives to another person (hirer or lessee) the rights to have exclusive possession and some benefits on the property for a fixed period of time.
You must understand that under Thai law, any lease agreement of more than 3 years must be registered at the land department (Section 538 CCCT). When you register a lease agreement, you must pay some taxes to the governement. Registration of a lease agreement is only possible on title deeds Nor Sor Sam or higher (like Chanote)
A renewal is also allowed by Law. It's important to draft a good rental agreement with specific conditions in order to protect your rights to stay on the property for a maximum of time, without any other problems. A lease agreement can also combine a superficies contract. With these 2 agreements, for example, a foreigner can lease the land, build a building on this property and put the building on his name.
A good lease agreement should survive the death of the lessee, so the lessee can transfer the lease to his/her heirs. There is a supreme Court decision (119/2509) saying that normally, if the lessee dies, the lease agreement ends.
It's very common in Thailand for some international law firm to charge up twice or three time ou price for a complete lease agreement. We can help you save money and time by doing the same work online and you will be able to register a lease agreement anywhere in Thailand. We actually make more than a lease agreement: we provide an addendum to your lease, a receipt and others to grant you as much protection as we can.
We can draft a quality 30-year rental agreement with different options according to your needs, in Thai and English, and we will send you some information about HOW to register that agreement at the land department. The options includes renewals, subleasing and others.
We can also assist you by sending one of our lawyers to register the lease with you should you wish.