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Civil and Commercial Code - Lease of Immovable Property
Civil and Commercial Code, Book III, Title IV (Hire of Property)
Thailand's Civil and Commercial Code, Book III, Title IV governs the hire (lease) of property, setting the rules on lease term limits, registration, rent, subletting, repair duties, survival of leases on a sale, and how tenancies end.
537 — Nature of a hire of property
Hire is a contract under which one party (the lessor) lets another party (the lessee) use or enjoy a property for a defined time, and the lessee agrees to pay rent for that use. The arrangement transfers use, not ownership, and is inherently time-limited.
538 — Writing and registration
A lease is enforceable by court action only if there is a document signed by the party being held liable. For immovable property, a lease longer than three years is enforceable only for the part registered with the Land Office; without registration it binds for no more than three years.
540 — Maximum 30-year term
A lease of immovable property may not run longer than thirty years. Any term agreed beyond that is automatically cut down to thirty years. A lease may be renewed, but each renewal period is likewise capped at thirty years counted from the date of renewal.
541 — Lease for the life of a party
A lease may instead be granted for the lifetime of either the lessor or the lessee. Such a life-tenancy is a recognised alternative to a fixed-year term and is not subject to the thirty-year cap in the same way as an ordinary term lease.
543-544 — Sublease and assignment
Unless the contract allows it, the lessee may not sublet the property or transfer the lease rights to anyone else. Breaching this prohibition gives the lessor the right to terminate the lease. Where multiple leases compete, priority generally turns on registration or prior possession.
545 — Effect of a lawful sublease
When subletting is permitted, the subtenant becomes directly answerable to the head lessor for the obligations under the lease. Rent the subtenant paid in advance to the main lessee cannot be set up as a defence against the lessor's own claim for rent.
546-547 — Lessor's duty to deliver and maintain
The lessor must hand the property over in a condition fit for the agreed use and keep it suitable throughout the term. The lessor also reimburses the lessee for necessary and reasonable outlays made to preserve the property, except costs of ordinary upkeep that fall on the lessee.
550-551 — Repair of defects during the term
The lessor is responsible for repairing defects that arise during the lease, other than minor upkeep customarily borne by the lessee. For lesser defects the lessee must notify the lessor; if a serious defect is not fixed within a reasonable time, the lessee may end the lease.
552-553 — Lessee's duty of proper use and care
The lessee must use the property only in its normal, intended way or as the contract specifies. The lessee must take ordinary care of it as a prudent person would and carry out routine maintenance and minor repairs at their own cost during the tenancy.
554 — Termination for misuse
If the lessee uses the property contrary to the rules on proper use and care or breaks the contract terms, the lessor may serve notice demanding compliance. Should the lessee fail to comply within the reasonable period set, the lessor is entitled to terminate the lease.
559-560 — Rent: due dates and default
Absent agreed timing, rent is payable at the end of each period - at year-end for yearly rent, at month-end for monthly. If the lessee fails to pay, the lessor may terminate, but where rent is paid monthly or at longer intervals the lessor must first give at least fifteen days' notice.
561-562 — Condition on return and liability for damage
Without a written condition report at handover, the lessee is presumed to have received the property in good repair and must return it in that state unless proven otherwise. The lessee is liable for loss or damage caused by their fault or by household members and subtenants, but not for deterioration from proper use.
563 — Six-month limitation after return
Claims by the lessor against the lessee arising out of the lease - such as for damage to the property - must be brought within six months after the property is returned. After that period the lessor's right to sue on those claims is time-barred.
564 — Termination at end of fixed term
A lease made for a fixed period ends automatically when that period expires, with no need for either side to give notice. The expiry of the agreed term is itself sufficient to bring the tenancy to an end without further formality.
566 — Termination of open-ended leases
When no duration is fixed, either party may end the lease at the close of any rent period by giving notice. The notice must cover at least one full rent period in advance, but need not exceed two months, allowing an orderly exit from an indefinite tenancy.
567-568 — Loss or destruction of the property
If the leased property is wholly destroyed, the lease is extinguished. If it is partly lost without the lessee's fault, the lessee may demand a proportionate reduction of rent; and where the remaining part can no longer serve the purpose of the lease, the lessee may terminate.
569 — Lease survives transfer of ownership
A lease of immovable property is not ended by a transfer of ownership of that property. The new owner steps into the former owner's position, acquiring the rights and taking on the obligations of the lessor toward the lessee for the remainder of the lease.
570 — Holding over after expiry
If the lessee stays in possession after the term ends and the lessor, being aware of it, raises no objection, the parties are treated as having renewed the lease for an indefinite period. The renewed tenancy then runs on the same terms but may be ended under the open-ended rules.