To protect a real estate investment, you can register a lease agreement in Thailand. That’s one of the ways to protect your rights. As you might know, foreigners are normally not allowed to own land in Thailand. But there are other ways around to protect you. We advise you about the best way for you.
How to make a lease agreement in Thailand
Many expats wishing to live in Thailand decide to lease a property. The Commercial and Civil Code of Thailand (CCCT) allows any person (Thai, foreigner, or even a company) to lease an immovable property for a maximum period of 30 years. It’s under a section “hire of immovable property”.
It’s basically a legal agreement where the owner (lessor) gives to another person (hirer or lessee) the rights to have exclusive possession and some benefits on the property for a fixed period of time.
You must understand that under Thai law, any lease agreement of more than 3 years must be registered at the land department. When you register a lease agreement, you must pay some taxes to the government. Registration of a lease agreement is only possible on title deeds Nor Sor Sam or higher (like Chanote)
A renewal is also allowed by Law. It’s important to draft a good rental agreement with specific conditions in order to protect your rights to stay on the property for a maximum length of time. A lease agreement can also combine a superficies contract. With these two agreements, for example, a foreigner can lease the land, build a building on this property and put the building on his name. Be aware that it might be impossible to register these “lease + superficies” but nothing forbids it to mention it in the contracts.
A good lease agreement should survive the death of the lessee, so the lessee can transfer the lease to his/her heirs.
It’s very common in Thailand for some international law firm to charge up to 25,000 baht for a complete lease agreement. We can help you save money and time by doing the same work online and you will be able to register a lease agreement anywhere in Thailand.
We can draft a quality 30-year rental agreement with different options according to your needs, in Thai and English, and we will send you some information about HOW to register that agreement at the land department. For this service, we ask 7,000 baht and you will have a professional agreement. We will draft it from A to Z for you. If you wish, our templates are even cheaper and you can complete them yourself with our instructions.
Why pay more?