30 Years Lease in Thailand
As a foreigner in Thailand, you are not normally permitted to own land directly, but it’s possible to arrange 30 years (that’s the maximum) lease, with the option to renew for further periods of 30 years. Two things you need to know:
- Make sure that the lease is registered at the land office
- Secure the services of a savvy lawyer so that –
- Your lease provides you with maximum freedom of use and enjoyment (no restrictive conditions)
- You understand the legal and financial aspects of the lease (no hidden charges)
- You have the best conditions for renewal of the lease
- The English and Thai (legal requirement) versions of the lease agreement correspond perfectly to ensure no possibility of later misunderstandings
Renewal of Lease
Renewal of lease in Thailand is not in perpetuity. There exists no automatic right to renewal and therefore, the parties must actively renew the lease towards the end of the initial term. While the process is a bit complicated, it is not impossible. The success will depend upon the careful drafting of the clause regarding the intention to renew and but it will still be subjected to the discretion of the Registrar. Renewal periods thereafter the initial period must not exceed 30 years.
Lease Agreement and Registration
The lease contract is generally drafted in the official Thai language. However, for certain requirements, the draft may also come in the English version. It is advisable that you include family members who are young adults as co-lessees in the contract. In case of the death of the parents, the children may continue the full term of the lease period.
Leases for more than 3 years must be registered at the Land Office. This will protect your interest in the house, as it becomes an encumbrance.
Once the lease has been registered, the title deed will then bear your name and particulars of the lease.
If the lease agreement permits, you may even construct a house on the land. The construction permit must be applied for in your name and subsequently, you will become the owner of the structure.
Above all, leases are valid even upon the demise of the lessor, or in the event that the land is sold. However, leases can be transferred to third parties only if the guarantor of the lease permits it.Tags : 30 years lease registration, 30 years lease renewal, 30 years lease thailand, thailand lease registration foreigners, thailand lease renewal,