LEASE AGREEMENTS for land, land and house or condominium in Thailand is primarily a contractual agreement governed by the section Hire of Property Civil and Commercial Code.
Real Estate leasehold interests and lease agreements in Thailand
LEASE agreements in Thailand. The lease agreement is created when the owner of the property offers to another party in exchange of rent the possession of the property for a certain period of time (up to 30 years) and the other party (tenant or lessee) accepts this offer. The basic principles of contract law apply to the formation of a lease agreement. A lease agreement must comply with Thai law as is primarily laid down in the section hire of property of the Civil and Commercial Code. 
A lease agreement in Thailand is enforceable by action if the lease agreement is made in writing. A verbal agreement for short term rental is common practice in Thailand, however not enforceable by action. A lease exceeding 3 years must be in Thai language script and registered with the local land office to be enforceable by action over 3 years.
As opposed to foreign freehold ownership of land it is not illegal for foreigners to obtain a registered leasehold interest in land. A registered long term lease agreement can involve any type of titled real estate property that is not illegal to own or to transfer.
Real estate leases can only be registered over:
- properly titled land in Thailand, meaning land with a land title deed confirming right of possession (NS3, NS3G) or ownership (Chanote);
- a condominium apartment unit in Thailand;
- a building or part of a building separate from the land in Thailand (e.g. an apartment unit in a building not registered as a condominium).
Termination of the lease contract
lease in Thailand is a rental contract governed by Thai hire of property laws. As a contract the lease agreement is terminated at the end of the agreed term without notice or at death of the leaseholder.
In a normal rental or lease agreement the person of the lessee is an essential part of the agreement therefore if the lessee dies the lease agreements is terminated and dissolved (Thailand Supreme Court) and the owner may regain possession of the property. The lease agreement can include a succession clause.
Assignment and sub-rent of leased property
A leasehold owner may assign his lease interest or property under the lease to a third party (assignees) ONLY if this is agreed in the lease agreement. If nothing is agreed on sub-rent or assignment Thai law (section 544) states that the property may not be sub-let or assigned.
An assignment transfers the lease agreement, including all rights and obligations to the assignee for the remainder of the lease term. Opposite to a sub-renter the assignee enters into a contractual relationship with the lessor.
An assignment of the lease agreement is valid if accepted by the lessor and formal registration of a new amended lease agreement has taken place at the local land office.
In a sublease the lessee gives temporary rights to possess and use the leased property to another person. In this case the sub-renter does not have any contractual relationship with the lessor. Again, the right to sublease must be agreed in the lease agreement.
Tags: Leasehold, Thai laws, lease agreement, lease drafting
Section 544 Thailand Civil and Commercial Code: ‘Unless otherwise provided by the contract of hire, a hirer cannot sublet or transfer his rights in the whole or part of the property hired to a third person.’
How to obtain a reliable lease agreement? Thailand Law Online drafts custom Thai English lease agreements with all required terms and conditions. Lease agreements developed over a period of time ensuring that you receive a high quality lease agreement for property in Thailand.
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