Under Thailand land law, there are two types of lease agreements: long term (over three years) and short term (under three years).
Thailand leases of longer than three years must be registered at the Land Department.
Once the lease has been registered, a foreigner may then construct a building on the land if so desired. The construction permit is applied for in the name of the foreigner who will then subsequently own the structure.
Thailand land leases remain valid following the death of the lessor, or if the land is sold.
However leases are only transferable to third parties if the grantor of the lease provides permission.
A lease must meet all of the requirements as set out in section 537-571 of the Thailand Civil and Commercial Code however common terms of a lease agreement include:
1. The identify of the parties
2. The terms of the lease
3. Use(s) of the property
4. Warranties
5. Liabilities for repairing
6. The right to inspection
Although additional terms are also likely to be incorporated to suit the needs of both parties.
