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BANGKOK 16 July 2019 10:56
GalaxyMan

Does a lease have to have a price?

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Is it possible to get and register with the land office a lease that has ZERO as the cost per month, in essence giving free living for the term of the lease?

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That's absolutely stupid to do as Gifts can be revoked in Thailand and your lease would not be worth the paper it's written on.

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27 minutes ago, FritsSikkink said:

Yes, it is possible.

 

No it is NOT. It makes the lease INVALID.

 

If there is tax fraud or wrongly low rent amount etc. involved each party can claim at anytime that the lease is VOID!! even if it is registered at the back of the chanote.

 

 

Leases suck anyway, look into Usufructs and superficies OP, only these are real rights in Thailand.

 

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I would suggest that you consult a lawyer whether you are lessee or lessor .

 

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Suggest the OP explain the purpose for the question.  IE: Why do you think you want/need a lease with zero rent?

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Suggest the OP explain the purpose for the question.  IE: Why do you think you want/need a lease with zero rent?
My thoughts ..
Perhaps although there is no requirement for monetary compensation ..they might want to list other conditions of occupancy ,such as , length of time, numbers of occupants , maintainence of property ..etc etc .

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53 minutes ago, ThomasThBKK said:

 

No it is NOT. It makes the lease INVALID.

 

If there is tax fraud or wrongly low rent amount etc. involved each party can claim at anytime that the lease is VOID!! even if it is registered at the back of the chanote.

 

 

Leases suck anyway, look into Usufructs and superficies OP, only these are real rights in Thailand.

 

It IS possible to register, that it can be contested is a whole other thing.

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1 hour ago, ThomasThBKK said:

 

No it is NOT. It makes the lease INVALID.

 

If there is tax fraud or wrongly low rent amount etc. involved each party can claim at anytime that the lease is VOID!! even if it is registered at the back of the chanote.

 

 

Leases suck anyway, look into Usufructs and superficies OP, only these are real rights in Thailand.

 

We've tried to get an usufruct twice, once on our own with the builder, then with a lawyer. They basically yelled at us and threw us out. The bottom line here in Koh Samui is NO USUFRUCT FOR FARANGS. Hence going the lease route. We're trying to minimize the tax that they'd charge in wanting to have ZERO as the lease amount.

I've read about superficies and know that the chanote for the house combines the land with the house, so it would need to be separated. Might be worth looking into. I could then 'buy' the house for whatever. The land's the issue.

I understand the government's position vis-a-vis farangs owning land in Thailand and I basically agree, but they really do need to abide by their own rules and regulations. Oh, sorry, this is LSD day. Silly me.

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Posted (edited)

Ah samui, yes it's typical there.

I had complete made up shit thrown at me in various other land offices too tho, they just don't want us.

 

General rule is the lease agreements value should be at  least 30% of the land for a 30 year lease to look valid.

 

Is the house already build? You should take care of a superficies asap using a lawyer, i don't really know how that works if it's already build. Normally that stuff should get done before it's finished. Superficies make your house comparable to a condo, it's basically based on the same principle and divides land and house ownership.

 

There are 2 different kinds of superficies btw:

 

1) lifetime - not inheritable

2) 30 years - but you can inherit it yo your kids etc. 

 

Choose wisely 

Edited by ThomasThBKK

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3 minutes ago, ThomasThBKK said:

Ah samui, yes it's typical there.

I had complete made up shit thrown at me in various other land offices too tho, they just don't want us.

 

General rule is the lease agreements value should be at  least 30% of the land for a 30 year lease to look valid.

 

Is the house already build? You should take care of a superficies asap using a lawyer, i don't really know how that works if it's already build. Normally that stuff should get done before it's finished.

The house is built. What is the 30% applied against, the price paid for the house/land?

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2 minutes ago, GalaxyMan said:

The house is built. What is the 30% applied against, the price paid for the house/land?

 

The land price, in your case there was prolly no seperate land price?

 

Then it should be the estimated land office price afaik - which is usually quite low. But it it all depends upon the sales contracts you've signed.

 

Usually you should have a Construction agreement, a lease/usufruct agreement and a land sale agreement. 

 

 

 

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I did this in CM, and wouldn't do it again, but they rejected 300,000 but agreed to 500,000 for a 30 year lease, On a house I was buying for 915,000 and the value of record was 300k for the land and 350k for the house.  1% tax..notbad, however I didn't like the unpaid annual rental tax hanging over my head.  

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A lease is a contract. A contract must have consideration to be valid.

In this case the consideration [value] is money. Free is not acceptable.

An agreement for 1 Baht is acceptable. 

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