Did You Know This?

Did You Know This?
Did You Know This?

A Foreigner can lease land and house but not for longer than 30 years according to Thai Law. Yes; and everyone knows that the Lease Contract will be terminated under a Time Condition.

In the case where the foreign tenant is an employee within the Landlord’s Company and they make an agreement that the foreign tenant can lease the land and house for an Unlimited Condition of Time, the Lease will last as long as the foreign tenant remains employed within the Landlord’s Company. Is this Agreement legal? The answer is “Yes”, it is legal and effective for both parties.

Four years later, while the foreign tenant is still working in the landlord’s company, the landlord wants to terminate the Lease to get the land and house back, claiming that the Lease was not registered at the Land Office, therefore, it is not effective for longer than 3 years. Can the Lease be terminated and the foreign tenant need to leave the land and house? Or Thirty two years later, the Landlord wants to terminate the Lease to get the land and house back, claiming that the Lease lasted beyond the limitation of time (30 years) as provided by law; such termination is made to the foreign tenant while he is still working in the Landlord’s Company. Can the Landlord terminate the Lease and the foreign tenant needs to leave the land and house?

The answer to the two examples above is “No”, the Landlord cannot terminate the Lease because the termination of the Lease was made on the Condition of Employment of the Foreign Tenant and not on a Time Condition. This means that the Lease can be made for longer than 30 years, if the termination is agreed to be made on a condition other than time limitation. Actually the Landlord can easily terminate the Lease by terminating the employment then the Condition of Termination. You can see the above Lease is not registered with the Land Office, because it is not required by law, the registration of a Lease is enforceable for a Time Condition only.

The above is to show that the Lease can possibly be made legally longer than 30 years if its termination is not based on time but on another condition. Conditions to end the Lease can be made in many different ways, for example: Lease under Club Membership / Lease under Employment and others. There are housing projects in Hua Hin, such as Black Mountain and Black Lotus that use this idea, to give the customers the right the Lease property as long as they are Members of the Club with Club Membership extremely long lasting and difficult to terminate. ACTA Hua Hin Law Firm : 80/9 Moo 15, La Vallee, Tambon Hin Lek Fai, Amphoe Hua Hin, Chang Wat Prachuap Khiri Khan 77110, Thailand