The Real Story Behind the So-Called "Landslide" Ruling in Phuket
The Thai Supreme Court’s recent ruling invalidating lease renewals in a well-known Phuket case has been branded a ‘landslide’ decision by developers and Thai-foreign law firms operating in tourist areas. But let’s be blunt: this ruling is not new, not surprising, and certainly not a legal revelation. What it really represents is a desperate attempt to reframe a long-known truth and cover up years of deliberately misleading advice given to foreign investors.
This Was Never Legal
The idea that foreigners could obtain a secure 90-year interest in Thai land through a 30+30+30 lease structure has always been a legal fiction. Thai law, specifically Section 540 of the Civil and Commercial Code, clearly limits lease terms to 30 years, with a single possible renewal. Section 546 further underlines that pre-agreed renewals are to be treated as part of the original lease, not distinct contracts. Supreme Court rulings going back over 15 years have repeatedly confirmed this interpretation.
The Real Turning Point: 2008 Land Office Regulation
The supposed “landslide” judgment came nearly two decades too late. The true shift occurred in 2008 when the Thai Land Department issued Instruction Letter No. มท 0515.1/ว 8867 (dated 24 April 2008). This directive required all Land Offices to:
- Refuse registration of lease agreements containing void or unlawful provisions,
- Scrutinize leases for pre-agreed or prepaid renewals designed to bypass the 30-year limit,
- Reject clauses allowing foreigners to convert leasehold to freehold or gain ownership rights in any form.
This regulation was supported by the Land Department Registration Manual (2009 edition), which instructed officials to:
- Only register lease renewals after the expiration of the original lease,
- Reject multiple consecutive 30-year terms submitted simultaneously,
- Recognize attempts to circumvent Section 540 and 546 as unenforceable.
How the 90-Year Lease Myth Was Sold
Despite the law and the explicit Land Office instructions, property developers and foreign-run legal offices continued marketing the 30+30+30 model. To get around the 2008 regulation, they began placing the illegal provisions, prepaid renewals, options to purchase, and freehold conversion rights into separate unregistered addenda.
These documents were often not submitted to the Land Office but were still marketed to foreign buyers as legally binding. In some cases, local Land Office officials, either through negligence, pressure, or corruption, turned a blind eye or even registered questionable leases. But regardless of whether such documents were registered or concealed, Thai law is unequivocal: a lease term may not exceed 30 years, and any renewal must be agreed upon and registered as a new contract at the time the original lease expires. Pre-agreed or automatic renewals do not extend the lease term and have always been void and unenforceable.
The Land Department has consistently maintained that these structures are invalid. The disclaimers used by these firms, such as "all advice in consultation with Thai lawyers" were little more than a legal smokescreen intended to shift liability while perpetuating a knowingly unsound legal construct.
The 2025 Supreme Court Ruling: A Cover-Up, Not a Breakthrough
The recent court ruling in Phuket invalidated a second, prepaid 30-year lease extension, exactly in line with Thai law and administrative practice since at least 2008. There was no surprise, no change, and no new interpretation. The case simply followed the law. The real surprise is how long it took to bring the matter to court and how aggressively some parties are spinning it as a new precedent.
Promoting this judgment as a landmark decision is nothing more than an attempt to deflect attention from the real issue: that foreign investors were misled for years by parties who knowingly constructed and sold leasehold structures that were never legally sustainable.
Summary:
There Was Never a Legal Basis for 30+30+30 Leases
The myth of the 90-year lease was always that: a myth. It was dressed up with professional contracts, softened by legal disclaimers, and sold to unsuspecting foreign investors with the full knowledge that Thai law did not support such structures. The Civil and Commercial Code, the 2008 Land Department Regulation (มท 0515.1/ว 8867), and the 2009 Land Registration Manual all clearly rejected these arrangements. The Supreme Court has now reiterated the obvious, but the truth has been there all along.
A detailed explanation of how Thai law treats renewal clauses, written in 2010!, this article already warned about the legal limitations still in force today.
Official Legal References (Bilingual Excerpts)
Civil and Commercial Code, Section 540
English: "A contract of lease of immovable property made for a period over thirty years shall have effect only for thirty years. If it is agreed that it shall be renewed, the renewal cannot exceed thirty years from the time of renewal."
"สัญญาเช่าทรัพย์อันเป็นอสังหาริมทรัพย์ซึ่งกำหนดเวลาเช่าเกินกว่าสามสิบปีนั้น ท่านว่ามีผลใช้บังคับได้เพียงสามสิบปีเท่านั้น ถ้าตกลงกันว่าจะต่ออายุให้ใหม่ ก็ต้องไม่เกินสามสิบปีนับแต่เวลาต่ออายุใหม่นั้น"
Civil and Commercial Code, Section 546
English: "If a lease is made for a period exceeding thirty years in contravention of Section 540, or with a pre-agreed renewal exceeding thirty years in total, such excess term shall be void."
"ถ้าการเช่าทำเกินกว่าสามสิบปีโดยฝ่าฝืนบทบัญญัติมาตรา 540 หรือมีข้อตกลงต่ออายุล่วงหน้าซึ่งรวมแล้วเกินกว่าสามสิบปี ให้ถือว่าส่วนที่เกินนั้นเป็นโมฆะ"
Instruction Letter No. มท 0515.1/ว 8867 (24 April 2008)
English Summary: Land Officers are instructed to examine lease contracts submitted for registration. If the contract contains any clause that is void under Thai law, such as:
- Prepaid or pre-agreed automatic renewals beyond 30 years,
- Clauses granting foreigners the right to acquire land ownership,
then registration must be denied.
"กรณีสัญญาเช่าอสังหาริมทรัพย์ที่เสนอจดทะเบียนมีข้อความหรือเงื่อนไขซึ่งขัดต่อกฎหมาย เช่น การกำหนดสิทธิของชาวต่างชาติในการได้กรรมสิทธิ์ในที่ดิน หรือการกำหนดเงื่อนไขการต่อสัญญาเช่าล่วงหน้าโดยชำระเงินล่วงหน้า ให้พนักงานเจ้าหน้าที่ปฏิเสธการจดทะเบียนในส่วนดังกล่าว"
Further Reading
- Renewal Options in a Thai Lease Agreement - an earlier article discussing why automatic lease renewals cannot be enforced under Thai law.
- Length of a Lease or Leasehold in Thailand - a detailed article (circa 2012) explaining why pre-agreed lease renewals beyond 30 years are not enforceable under Thai law.
- Many publications, including The Phuket News - framed the 2025 ruling as a landmark or landslide decision. In reality, the Supreme Court merely reiterated what Thai law and Land Department policy have clearly stated and enforced since 2008. The real issue is not the law changing, it’s that misleading lease structures were knowingly sold for years despite that law.
FAQ
These quick answers summarize key points. For the full legal background and history, please read the main article above.
Can a lease in Thailand be longer than 30 years?
No. Thai law limits lease terms to 30 years. Renewals can be agreed upon later but not pre-arranged or automatic. See the explanation above for full legal context.
Are automatic lease renewals enforceable?
No. Pre-agreed or automatic renewal clauses are void under Thai law. A renewal must be a new lease, negotiated and registered after the original lease ends.
Did the 2025 Supreme Court ruling change Thai lease law?
No. It simply confirmed existing law and practices dating back to at least 2008. The ruling exposed longstanding misinformation, not a legal change.
© 2025 SamuiForSale.com. This article is original legal analysis. Republishing is not permitted without permission or proper attribution with a link to the source.
