5 Frequently Asked Questions about Tenant Laws in Thailand
Are you considering to take a property in Thailand on a lease? So, are you aware of the governing tenant laws in Thailand? When entering any sort of contract, whether it is called a lease or tenancy, it is typically governed by the Civil and Commercial Code. Any contract where the property owner agrees to let any other person use the property for a certain period of time and he agrees to pay rent, it must be read as the property rental contract signed between a lessor and a tenant. Let’s have a look at the common questions and answers on tenant laws;
- Can the tenant and lessor sign up a 30-year lease agreement for two consecutive years?
In a case of a 30-year lease agreement for two consecutive years, the first one will be considered by the Supreme Court, but the second lease contract will be deemed void under the section 150 civil code.
- What are the requirements to be a tenant?
As mentioned earlier, a tenancy in Thailand is governed by the Civil and Commercial Code. The lease agreement will be enforceable by legal action only if it has the written evidence. If you (tenant) makes an agreement with the lessor for 3 years or more then it must be registered with the land office under section 538 (land title deed).
- Will the lease in Thailand end if the tenant dies?
Since a lease in Thailand is a personal contract and not a property right, usually the tenancy ends when the tenant dies. However, it can be assigned to the heirs of the tenants as a new contract else the owner has all the right to terminate the agreement.
- Can the tenancy be extended beyond thirty years via renewal options?
Under section 540 civil code if the tenancy is made for more than 30 years then it shall be lessened to 30 years. One cannot make the term longer via renewal terms. However, the lease can be renewed only with a new contract.
- What is key money in leasing/tenancy?
Key money typically has different meanings, but in Thailand, it is asked while making a commercial rental contract and is explained as a non-refundable part payment of the entire lease price. It is generally applicable to those tenants who have agreed to a lower monthly payment to the lessor.
If you still have queries regarding Thai tenant laws, give us a call. Our property law experts will get back to you shortly.
