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Consideration on the law with regard to the lease of immovable property according to Thai law 
1. Civil and Commercial Code, Article 538 is stipulated that for the lease of immovable property, if there is no evidence in any letter signed by the liable party, it is stated that the prosecution of enforcement cannot be done, if the lease term is over 3 years up or stipulated through lifetime of 
the Lessee or the Lessor; if it is not done in letter or registered to the official, it is stated that such lease can be prosecuted to do enforcement for only 3 years.
- Consideration: being signed by the liable party; “who is the liable party?”; the answer is : both parties are the liable parties.
- The Lessee is the liable party for the payment of …………expense. The Lessee shall allow the Lessee to reside in the leased property or make a registration at the land office for the Lessee.
2. For the lease of immovable property over 3 years, unless the lease agreement shall be made, going to register the lease shall be done at the land office where such immovable property is located because according to the law, the lease agreement shall be effective and bound between the Lessor and the Lessee for only 3 years, for example; Mr. A makes the house lease agreement 
with Mr. B with its lease term of 10 years but going to register the lease is not done at the land office where the house is located; the lease agreement with its lease term specified for 10 years made with each other is certainly ineffective, it is equal that there is the lease agreement with 
each other for only 3 years. Therefore, if there is a case of dispute occurred after the 3rd will be the problem immediately.
- Consideration: the contractual party may prosecute again the other contractual party to register the lease but it must be prosecuted within 3 years from the date of making the lease agreement 
and in the agreement, it must be specified to have both contractual party go to register the lease at the land office and then it can be prosecuted to do enforcement. The information of lease in 
reverse of the title deed of such plot will be appeared.
3. The longest term of leasing the immovable property is not over 30 years. At present, there is the making of 30-year lease agreement plus for 30 years under another agreement. 
It is questioned how is the result? The answer is that the agreement plus for 30 years is not contradictory to the law as well as peace and order of the public and also can be enforced 
between both contractual parties but it will not be continuously effective automatically because both contractual parties shall go to make a registration again at the Land Office.
- Consideration: it must be understood that the Lessor can sell the leased property to other person but it will not impact to the lease agreement between the Lessee and the Lessor 
formerly. However, there is some problem whether the contractual clause regarding the renewal of this agreement will be bound with a new buyer or not; the answer is that it is 
not bound because it is not the direct right and duty as per the lease agreement unless a new buyer will agree to bind it in letter with the former conditions between the Lessee 
and the Lessor.
4. In principle, the lease agreement is the individual right of the Lessee. What does it mean? Let us see………….this is because the immovable property is the one with high value. Therefore, 
for the action to allow someone to take on lease of our immovable property, we shall certainly have confidence on such Lessee first; for example, we have confidence that this person can 
take care of the leased house very well because this person is fond of cleanness or this Lessee is not probable for missing to keep an appointment of paying the rental because the Lessee 
has the good financial status. The Lessor therefore specifies that it is given to have this Lessee take on lease only by specifying in the lease agreement also. Therefore, the law deems that the 
Lessee is the essential part of the lease. Then, if this Lessee who makes this agreement dies even before the lease agreement expires, the agreement is certainly terminated according to the law 
immediately. The succession of descendants cannot be made; for example, the lease agreement is scheduled for the term of 3 years but after the lease for only one year, the Lessee dies, the lease 
agreement is certainly terminated immediately. 
- Consideration, the solution is that both parties shall specify clearly whether the Lessor or the Lessee is the essential part of the lease agreement or not.
For another solution, if the Lessor can stipulate in the lease agreement that “this lease agreement is given to devolve to the Lessee’s heir in case the Lessee dies before the lease agreement will 
expire”. 
For these problems and conditions of law, they are a part from the direct experiences of the writer especially in the locality of Hua Hin and other area. There are many more foreigners who 
do not understand this matter exactly. Kraivit Business and Estate Law Office is ready to give some advice and how to protect against the problem which is eventually occurred in the future as 
per the expression that “when knowing the problem, it is certainly not occurred” as well as the problem-solving occurred by means of exercising the right of prosecution via the Court by the 
lawyer who has the specific expertise about these matters.

Consideration on the law with regard to the lease of immovable property according to Thai law 

 

1. Civil and Commercial Code, Article 538 is stipulated that for the lease of immovable property, if there is no evidence in any letter signed by the liable party, it is stated that the prosecution of enforcement cannot be done, if the lease term is over 3 years up or stipulated through lifetime of the Lessee or the Lessor; if it is not done in letter or registered to the official, it is stated that such lease can be prosecuted to do enforcement for only 3 years.

 

- Consideration: being signed by the liable party; “who is the liable party?”; the answer is : both parties are the liable parties.

- The Lessee is the liable party for the payment of …………expense. The Lessee shall allow the Lessee to reside in the leased property or make a registration at the land office for the Lessee.

 

2. For the lease of immovable property over 3 years, unless the lease agreement shall be made, going to register the lease shall be done at the land office where such immovable property is located because according to the law, the lease agreement shall be effective and bound between the Lessor and the Lessee for only 3 years, for example; Mr. A makes the house lease agreement with Mr. B with its lease term of 10 years but going to register the lease is not done at the land office where the house is located; the lease agreement with its lease term specified for 10 years made with each other is certainly ineffective, it is equal that there is the lease agreement with each other for only 3 years. Therefore, if there is a case of dispute occurred after the 3rd will be the problem immediately.

 

- Consideration: the contractual party may prosecute again the other contractual party to register the lease but it must be prosecuted within 3 years from the date of making the lease agreement and in the agreement, it must be specified to have both contractual party go to register the lease at the land office and then it can be prosecuted to do enforcement. The information of lease in reverse of the title deed of such plot will be appeared.

 

3. The longest term of leasing the immovable property is not over 30 years. At present, there is the making of 30-year lease agreement plus for 30 years under another agreement. It is questioned how is the result? The answer is that the agreement plus for 30 years is not contradictory to the law as well as peace and order of the public and also can be enforced between both contractual parties but it will not be continuously effective automatically because both contractual parties shall go to make a registration again at the Land Office.

 

- Consideration: it must be understood that the Lessor can sell the leased property to other person but it will not impact to the lease agreement between the Lessee and the Lessor formerly. However, there is some problem whether the contractual clause regarding the renewal of this agreement will be bound with a new buyer or not; the answer is that it is not bound because it is not the direct right and duty as per the lease agreement unless a new buyer will agree to bind it in letter with the former conditions between the Lessee and the Lessor.

 

4. In principle, the lease agreement is the individual right of the Lessee. What does it mean? Let us see………….this is because the immovable property is the one with high value. Therefore, for the action to allow someone to take on lease of our immovable property, we shall certainly have confidence on such Lessee first; for example, we have confidence that this person can take care of the leased house very well because this person is fond of cleanness or this Lessee is not probable for missing to keep an appointment of paying the rental because the Lessee has the good financial status. The Lessor therefore specifies that it is given to have this Lessee take on lease only by specifying in the lease agreement also. Therefore, the law deems that the Lessee is the essential part of the lease. Then, if this Lessee who makes this agreement dies even before the lease agreement expires, the agreement is certainly terminated according to the law immediately. The succession of descendants cannot be made; for example, the lease agreement is scheduled for the term of 3 years but after the lease for only one year, the Lessee dies, the lease agreement is certainly terminated immediately. 

 

- Consideration, the solution is that both parties shall specify clearly whether the Lessor or the Lessee is the essential part of the lease agreement or not. For another solution, if the Lessor can stipulate in the lease agreement that “this lease agreement is given to devolve to the Lessee’s heir in case the Lessee dies before the lease agreement will expire”. 

 

For these problems and conditions of law, they are a part from the direct experiences of the writer especially in the locality of Hua Hin and other area. There are many more foreigners who do not understand this matter exactly. Kraivit Business and Estate Law Office is ready to give some advice and how to protect against the problem which is eventually occurred in the future as per the expression that “when knowing the problem, it is certainly not occurred” as well as the problem-solving occurred by means of exercising the right of prosecution via the Court by the lawyer who has the specific expertise about these matters.

 

  Kraivit    Prariyachattrakul

     Solicitor 

     Senior  Partner

    +66(0)84-9794714

    +66(0)32-900408

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