Lease Agreement is a contract between a Lessor and a lessee that outlines the terms of renting property. In case of residential rental, the lessor is the house owner or landlord, and the lessee is the tenant.
Lease Agreement
Immoveable Property
For immoveable property rental (Land, house, condominium, Building etc.) longer than 3 years, under Thai Law the lease agreement and registration by Land Office are required otherwise the period of lease agreement will be enforceable only for 3 years. In Thailand, there are many people who avoids the registration fee by sperating lease agreements consecutively with 3 years of terms only. However, only the first lease agreement would be enforable for both parties, for the rest agreements after 3 years will be the promises of landlord only which are unenforceable contract under Thai Law. Moreover, in case that the ownership of immoveable property is transfered to others during the term of lease, the new owner shall accept and be bound by the lease agreement that the previous owner made. Then the new owner becomes the lessor.
Moveable Property
For moveable property rental, even there is no written lease agreement, such as verbal agreement, under Thai Law is deemed to be enforceable. In case that the ownership of moveable property is transfered to others during the term of lease, the new owner is entitle to revoke the lease and request the tenant to return the property.
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Termination of Lease
1. At the end of lease term;
2. The whole leased property is lost;
3. When a tenant is dead;
4. Any party revokes the lease agreement by giving prior written notice;
5. Breach of contract
Sublease Agreement
A sublease is the renting of property by a tenant to a third party either all or some part of portion the tenant’s existing lease agreement. Under Thai Law, Subleasing is considered a breach of lease agreement. The lessor or landlord has the right to terminate the contract to retrieve the leased property. Unless the lessor allows or give a permission in such cases, then sub-lessee is directly responsible to the lessor or landlord.
Requirement evidences for rental of land, house, condominium or building?
When you rent an immoveable property in Thailand, make sure that you you have the evidences which are made lawfully and enforceable according to Thai Law as follows:
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For 1-3 years of lease term
- Lease Agreement signed by the landlord and tenant
- Duty Stamp 0.1 % of total amount of rental
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For more than 3 years of lease term
- Lease Agreement signed by the landlord and tenant
- Duty Stamp 0.1 % of total amount of rental
- Lease Agreement Registration by Land Office
- Registration fees 1 % of total amount of rental
Special Reciprocal Contract
A special reciprocal contract is the unique lease agreement which the tenant agrees to do something to the leased property or gives the owner / landlord more benefits than a normal rental.
For example, the tenant offers to build the house or building on the land for the landlord and the landlord agrees to lease out the land and house for longer than 10 years in return. This is a special reciprocal contract, even the landlord and tenant do not make any written lease agreement and register to the Land Office. This special reciprocal contract is deemed to be enforceable and both parties are bound to this contract according to Thai Law.
Our Services
- Draft and review Lease Agreement
- Draft Addendum of Lease Agreement
- Lease Agreement Registration by Land Office
- Translation and Gramma Correction
- Legalization by Ministry of Foreign Affair
- Legalization by Embassy
- Power of Attorney
- Notary Public
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