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ubonr1971

Renting our building to a business. Should we register at land office?

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On 1/20/2020 at 3:40 PM, ubonr1971 said:

But Im asking from the perspective of a landlord. I dont understand the 3 yr rule and a few comments by different members contradicted each other a bit. 

Any lease/rent period under three years don't need to be registered.

 

Ane lease/rent period agreed for more than three years need to be registered, as otherwise the agreement can be legally void.

 

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Does the lease need to be registered with the Land Department?

Any lease exceeding the term of 3 years must be in writing and needs to be registered with the Land Department to be enforceable for the term exceeding 3-years (section 538). The lease will be noted on the backside of the title deed of the owner and on the original land title deed as held by the Land Office. There will also be an official one page land lease document in Thai (with the government’s Guaruda symbol) that parties need to sign with the basic details of the private lease agreement between the parties. This Thai land office document must refer to the private lease agreement between the parties. At the Land Office everything is done in Thai, even your name is usually written in Thai script.

[ ... ]

Are 3 consecutive back-to-back 3 year leases enforceable for the total of 9 years?

Entering into multiple back-to-back short-term 3 year leases without registration with the Land Department is generally not enforceable by legal action as this is seen as an avoidance of section 538 Civil and Commercial Code (leases exceeding 3 years must be registered in the Land Registry).

Source: "Thai Real Estate Lease Leasehold and Rent laws"

 

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Section 538. A hire of immovable property is not enforceable by action unless there be some written evidence signed by the party liable. If the hire is for more than three years or for the life of the letter or hirer, it is enforceable only for three years unless it is made in writing and registered by the competent official.

Source": "Thai Law Translation Civil and Commercial Code 'rent of property'"

 

I've however seen commercial Thai rent contract written as the rent continue until terminated by (some agreed term) month's notice.

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