Thai Law For Foreigners is based on common questions put to the Chief Lawyer of one of the most experienced legal firms in Hua Hin. Of course each set of circumstances will differ and a qualified lawyer should always be consulted when legal issues arise. Inheritance of Leasehold In general, Leasehold is not inheritable because it has been made in consideration of the personality of each person; that is the Lessor (a person who leases or lets a property to another; a landlord) and the Lessee (a person who holds the lease of a property; a tenant). This is a substantial consideration when a Lease Agreement/Contract is made. There is no doubt that the Lease Agreement/Contract will be terminated immediately by law when the Lessor or the Lessee dies, therefore, the Leasehold is not inheritable to the Lessee’s heir because the Lease ceases to exist. Recently there was a Judicial Judgement of the Supreme Court, Case No: 11058/2559 which made some changes to this principle. The Supreme Court now considers that the heir can inherit a Lease when the Lessee dies.
For this to occur, there are two preconditions: The Lease Agreement was for up to 30 years (not a lifetime) There is a clause that the Lessee has the right to transfer the Leasehold or Sub-Lease to any third person without any consent from the Lessor. In these circumstances the qualifying personality of the Lessee or Sub-Lessee was determined not to be a substantial concern. The Supreme Court made a decision that the Lease is still effective even though the Lessee has died; therefore, the heirs of the Lessee can inherit the Lease for the remaining Lease duration.
This decision of the Supreme Court was made under resolution of the Supreme Court General Meeting No: 9/2559 (2016) and will be of benefit to other later cases with this issue. Web: www.manoraproperty.com Email: email@example.com Office: +66(0)32 525 051 Mobile: +66(0) 63 629 3505 Facebook: @manorapropertyhuahin 3 Bedroom 3 Bathroom Living area: 246 Sq-m Price: 10,850,000 THB Location: Khao Tao, Hua Hin 2 Bedroom 3 Bathroom Living area: 124 Sq-m Price: 13,500,000 THB Location:Khao Takiab, Hua Hin 2 Bedroom 2 Bathroom Living area: 155 Sq-m Price: 10,800,000 THB Location: Hua Hin 1 Bedroom 1 Bathroom Living area: 42 Sq-m Price: 3,000,000 THB Location: Khao Takiab, Hua Hin 1 Bedroom, 1 Bathroom Living area: 80 Sq-m Price: 3,700,000 TH Location: Hua Hin 3 Bedroom 3 Bathroom Living area: 200 Sq-m Price: 4,990,000 THB Location: Pranburi Acting in Good Faith A recent case in a Hua Hin Court involved a foreigner who had set up a Company using a nominee Thai shareholder with 51% of the shares with the foreigner having 49% of the shares and named as the authorised director to buy land. Several years after purchasing land, during a visit from his home country, the foreigner saw someone constructing a house on the Company’s land.
That person claimed that the land belonged to him having purchased it from the Company. In a civil case against the buyer, it was claimed that the Purchasing Contract was void because the Thai shareholder of the company had committed a crime by falsifying documents and the foreigner’s signature to amend the Company registration. It was claimed that the Thai shareholder had unlawfully named himself as the authorised director so that he could sell the land. The buyer defended the case stating that he had bought the land in Good Faith and paid for it, so he should be protected by law. As the Company amendments had been made using false documents, the Judge’s decision was that the sale was void because a crime had been committed.
The unlawfully authorised Thai Director was unable to act on behalf of the Company to sell the land, therefore, the land purchasing contract and any subsequent transactions were void. The land was then returned to the foreigner. To Act in Good Faith and Pay is not protected in all cases.
Provided by: © Jatupon Cherbangkaew; Executive Partner / Chief Lawyer; ACTA Law Firm Co Ltd Website: www.actahuahin.com; Email: firstname.lastname@example.org