Thai English 30-year Lease Agreement for land

Only a written lease agreement in Thailand is enforceable by action and a lease agreement exceeding 3 years is only enforceable for the term exceeding 3 years if the agreement has a Thai script version recorded and entered into the local land office land registers and noted on the land title deed copy of the owner.

Thai land lease basics

• A written rental or lease agreement is enforceable by action (a verbal agreement not);
• A rental or lease with a term up to 3 years can be written in another language and does not need to be registered with the Land Department;
• A rental or lease agreement exceeding 3 years must have a Thai script version registered with the Thai Land Department to be enforceable;
• A registered leasehold cannot exceed 30 years, renewal options in the lease agreement are not secured over the property, therefore in principle not binding on any transferee owner or successor of the property;
• A lease agreement can only be registered over titled property (condominium or land with a proper title deed);
• A leaseholder can only sub-lease or sell (assign) his leasehold interest to another person if this is agreed in the lease agreement;
• A lease registration fee (for registered leases exceeding 3 years) shall be collected at the rate of 1% of the total rental throughout the lease term and stamp duty shall be collected at the rate of 0.1%, also over the total rental throughout the lease term;
• A Housing and Land Tax (if applicable) is charged yearly at a rate of 12.5% of the actual yearly or assessed rental value, whichever is higher.
• A sublease, rental or lease income is subject to personal income tax;
• A lease agreement is extinguished without notice at the end of the agreed period.

Common lease arrangements mistakes:

• The lease agreement exceeding 3 years is not registered with the Land Department (therefore not enforceable by action for the period exceeding 3 years);
• Not paying Housing and Land Tax when leasing land and house and getting fined (though it is the lessor's responsibility this is usually passed on to the lessee in the lease agreement)
• The standard short form land office lease document is registered and not the lease agreement agreed between the parties;
• The land does not have a proper title deed or is not suitable (or restricted) for building or has other legal problems or restrictions (this can be prevented by conducting due diligence prior to entering into a lease agreement);
• The lease agreement is poorly drafted and will in any case end at death of the lessee, irrespective the term in the lease agreement or is missing other fundamental clauses.
• A maintenance agreement as part of the lease arrangement. Non-payment of maintenance costs set by the owner would lead to default and possible termination of the the lease agreement.

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We offer Thai English 30 year land lease agreement template forms online. A professional lease agreement for Thailand sent by email within 24 hours.

A complete 11 page Thai English language lease agreement developed over a number of years assuring a high quality agreement that offers the best protection possible under Thai law. DIY template Thailand contract forms.

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