A long term 30-year lease is one of the best ways to realize the advantages of ownership of property in Thailand. Many foreigners in Thailand opt for Thai lease as this is easier to understand rather than setting up a Thai Company or registering a Thai usufruct or superficies. Though a Thai lease is considered less complicated, it still has some legal formalities that need to be followed so that it is approved and properly honoured under Thai law.
One of the most common misunderstanding that comes along with a long term Thai Lease, is that one can get a 99-year lease as in other countries. The Thai Property Law states that a lease may only be registered on a property for up to 30 years only. Many people claim that a Thai lease can be automatically renewed upto three times after every 30 years, this is, however, not pssible.
A Thai lease agreement in writing only is enforceable by law. In case of lease agreement exceeding three years, it is enforceable for a period of time exceeding three years if the agreement has a Thai version registered, entered into the local land registers office and endorsed on the land title deed copy of the owner.
Furthermore, no Thai lease agreement shall be longer than 30 years. There is a provision to include a renewal clause in the Thai lease agreement which allows subsequent renewals. However, the lease renewal is required to be re-registered at the local land office in Thailand.
A Thai usufruct grants a permissible lease agreement in Thailand and this system allows the lessee to maintain a lease even upon death of the original Thai usufruct principal. This type of lease should also be registered with the appropriate land department.
It is always better to approach a Thailand legal professional who can help you handle the registration and legislation of a Thai lease. Cloud 7 Legal Services attorneys will help you throughout the process with their proper legal representation and assistance to get the best results from the Thailand legal system.