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TO WHOM IT MAY CONCERN
Information regarding 30 Years (50 y. on commercial property) Lease of Property and House:
By the Civil & Business Code of Thailand a maximum of 30 years Lease can be registered at the land-registration office. The law states, that every contract with more than 3 years lease has to be registered, otherwise this contract is just valid for 3 years. The registration means, that on the actual land-title (on the backside) the contract with the Lessee will be noted. A contract can have the terms of extending this contract for another 30 years as an option with payment, even additional 30 years extension(s) could be in the contract. Each extension of the contract would need to be registered at the land-registration office by issuing a new 30 y. (or maximum allowed by Law at that time) agreement again. Each time fees and taxes of about 1.1 % (current fees) will have to be paid plus service charges.
Each registered Lease Agreement (30 Years) is binding to any third party, though on a lease including building the lease can not be passed on to the hires of the Lessee, this though could be written as an option to take the lease on for a minimal fee.
The extension though is not binding to the hires of the Lessor or any third party.
The risk on a 30 years lease with extensions is that after 30 years if in case the Lessor dies, is bankrupt, has any court order against his assets or problems with the Revenue Department therefore all assets frozen the Lessee might not get the extension anymore.
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