We are starting a series of articles about contracts in Thailand. We will discuss their types and features, and also try to understand whether it is necessary to sign a contract when entering into various legal relationships.
We begin with the common and well-known lease agreement. It is relevant for all foreigners who own property and rent it out, or who rent an apartment or house for a holiday or for living in Thailand. Legal entities renting premises are required to sign this document.
What you need to know about lease agreements.
Lease agreements for a term of up to 3 years must be concluded in simple written form and signed by two witnesses.
Lease agreements for a term of 3 years or more must be registered with the Land Department.
It is prohibited to conclude lease agreements for a term of less than 1 month without a special license.
If you rent out 5 or more properties, the agreement must comply with consumer protection legislation.
A lease agreement is a mandatory document for registering a tenant with the immigration authorities and must be provided within 24 hours after arrival in Thailand.
For the tenant, a lease agreement is necessary.
Firstly, to justify their stay in the property.
Secondly, if the agreement is properly drafted, a handover report is signed, photographs of the property are attached, and an inventory of furniture and equipment is included, there will be no issues with deposit refunds or claims for damages that the tenant did not cause.
On the other hand, if damage is caused, the agreement serves as a basis for protecting the landlord’s rights.
For all questions regarding drafting lease agreements, please contact +66 65 665 1970.
Author: Alexandra Agapitova.
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