This causes more loss to tenants than any other point. A tenant who has invested in fitting out premises on the strength of an unregistered ten-year lease can be given notice at three years, with no claim for the remaining term.
The other point rarely known: a lease does not, as a rule, pass to heirs. On the tenant's death the lease ends, unless expressly agreed otherwise — which matters greatly to anyone taking a long lease of land to build a home on.
Beyond leasing, Thai law provides several other rights over land, each with a different effect and suited to different situations. Choosing the right one matters.
The rights available over land
- A lease gives use for a term, registrable for up to thirty years and renewable at expiry.
- A usufruct gives use and the fruits of the land for the holder's lifetime or a term — common where land is transferred to children while the parent continues to live there.
- Superficies gives ownership of buildings on someone else's land, separate from the land itself.
- A servitude burdens one plot for the benefit of another — access and drainage, for example.
- A right of habitation gives the right to live in a dwelling without payment.
These must be registered with the competent official to bind third parties. A private agreement binds only the parties to it, and ends when the land changes hands.
What a lease should say
- The premises and the area, identified precisely, with a plan attached.
- The term, and renewal terms that are actually enforceable — not merely a statement that renewal will be considered.
- The rent, how it increases, and when it is due.
- The deposit and the conditions for its return, the most common dispute at the end of a lease.
- Who is responsible for which repairs, and for land and building tax.
- Who owns tenant improvements and fixtures at the end of the term.
- The tenant's position if the landlord sells during the term.
Checks before a long lease
- That the landlord is the registered owner and has authority to lease.
- Whether the land is mortgaged, since enforcement could affect the tenant.
- The register on the title, for rights already granted to others.
- For commercial premises, that zoning permits the intended use.
This page is general information, not advice on your situation. The choice between a lease and the other rights depends on the purpose. Send us the draft before signing.