This information is for reference only and is not legal advice. Consult a licensed lawyer before any transaction.
Civil and Commercial Code - Hire of Property
Civil and Commercial Code, Book III, Title IV
The information is reviewed and updated monthly against official sources.
In short
Core lease law: 30-year maximum, registration required for long terms, lease survives a sale. The foundation of every foreigner leasehold structure.
537: Definition of a lease (hire of property)
A lease is an agreement under which one party (the lessor) lets the other party (the lessee) use or enjoy a property for a defined period, while the lessee agrees to pay rent in return. This basic exchange of temporary possession for periodic payment underpins every residential, commercial and land lease in Thailand.
538: Writing and registration of leases
A lease of immovable property cannot be enforced in court unless there is written evidence signed by the party being held liable. Where the term exceeds three years (or runs for someone's lifetime), it is enforceable only for three years unless the parties put it in writing and register it with the competent land official.
540: Thirty-year maximum term
A lease of immovable property may not exceed thirty years. Any term agreed beyond that limit is automatically cut down to thirty years. The parties may renew the lease, but each renewal is again capped at thirty years counted from the date of renewal, so popular '30+30+30' clauses are not guaranteed in advance.
540 / 569: Lease renewal options bind only the original lessor
A lease renewal option (for example the 30+30+30 structure) is a personal contractual promise of the lessor, not a registrable real right: it cannot be registered, does not bind a new owner of the land if it is sold, and does not pass to the lessor's heirs. Section 569 protects only the remaining registered term of the CURRENT lease, not the renewal promise. The reliability of a long leasehold therefore depends on the individual lessor staying in place; usufruct or superficies, registering each new term as it vests, and title caveats are used to strengthen it.
544: Sublease and assignment of the lease
Unless the lease expressly allows it, a lessee may not sublet the property or assign the lease rights to a third party, whether in whole or in part. Breaching this rule lets the lessor terminate the lease. Investors should therefore secure written consent or a clear sublet/assignment clause before relying on transferring their rights.
545: Effect of a lawful sublease
When subletting is permitted, the subtenant becomes directly answerable to the head lessor for obligations under the sublease. Importantly, rent the subtenant pays in advance to the original lessee cannot be raised as a defence against the lessor's claims, so advance payments should be coordinated with the primary lease terms.
546: Lessor's duty to deliver the property
The lessor must hand over the leased property in a condition fit for the agreed use and keep it in proper repair throughout the term. For buyers of leasehold homes this means the owner is legally responsible for delivering a usable, maintained property, not merely the keys, at the start of the lease.
547: Reimbursement of necessary expenses
If the lessee pays for expenses that are genuinely necessary to preserve the property, the lessor must reimburse those costs. Ordinary day-to-day upkeep is excluded, since routine minor maintenance is the lessee's own responsibility. Keeping receipts and notifying the lessor before major preservation work protects the right to recover the money.
548: Property unfit at delivery
If the lessor delivers the property in a state that makes the agreed use impossible or significantly impaired, the lessee may terminate the lease. This gives a tenant a clear exit where, for example, a unit is uninhabitable on handover, rather than forcing them to remain bound to a defective property.
550: Lessor's liability for defects during the term
The lessor remains liable for defects that appear while the lease is running and must carry out the repairs needed to keep the property usable. This continuing obligation means structural and major problems arising mid-term fall on the owner, supporting tenants who face faults that emerge after move-in.
552: Permitted use of the property
The lessee must use the property only for its ordinary purpose or for the specific use stated in the lease. Using it for some other purpose breaches the contract. A residential tenant, for instance, generally cannot convert the premises into a commercial operation without the lessor's agreement.
553: Lessee's duty of care and minor repairs
The lessee must take reasonable care of the property as a prudent person would and carry out routine upkeep and minor repairs at their own cost. This allocates everyday wear-and-tear maintenance to the tenant, while leaving substantial and structural repairs with the lessor under the related provisions.
560: Termination for non-payment of rent
If the lessee fails to pay rent, the lessor may terminate the lease. Where rent is payable at monthly or longer intervals, the lessor must first give the lessee at least fifteen days' notice to pay before terminating. Following this notice procedure is essential to make a termination for arrears valid.
564: Expiry of a fixed-term lease
A lease made for a fixed period ends automatically when that period expires, with no need for either party to give notice. Tenants relying on continued occupation should arrange renewal in advance, since the lease simply lapses on the agreed end date unless renewed or treated as continued by conduct.
566: Termination of an indefinite lease by notice
Where no term is fixed, either party may end the lease by giving notice at a rent-payment date, allowing at least one rental period of notice (and not more than two months). This provides an orderly exit for open-ended tenancies while ensuring the other side receives fair advance warning before vacating.
569: Lease survives a sale of the property
A registered lease of immovable property is not extinguished when ownership of the property is transferred. The new owner steps into the seller's position, taking on the lessor's rights and duties toward the tenant. This protects leaseholders, ensuring a properly registered lease continues to bind a subsequent buyer of the property.
570: Implied continuation after expiry
If the lessee stays in possession after the agreed term ends and the lessor knows but raises no objection, the parties are treated as having continued the lease on an indefinite basis. The arrangement then runs on the previous terms but can be ended by either side through the statutory notice rules.