Lease and Land Lease Contract

A standing in line with the Thai legal solution, the acquisition of a right to use a plot or. Das Land Leasing-dar.

So the alien signs a lease, Rent- and lease with the owner of the land from. The entire lease amount, representing virtually the same "purchase price", is usually paid in advance.

Besides the pure rent, a housing law, a Niesbrausrecht (“Usufruct“) and an additional right to construct ("Surfaces") be settled in favor of the foreign acquirer.

The tenant thus gained possession on the land for the agreed duration. He also has the right, to use the land, So he has the exclusive right to the property, He can thus build a house and live in this, this lease, demolish an existing house, expand or change.

When properly by agreement to this right of use may continue, without the consent of the property owner, be transferred to third parties. It is recommended therefore necessarily, this is to expressly agree in a contract to, Thus the rights of inheritable, are assignable and transferable.

Precautions should also be taken in the event, that one of the parties dies before the end of the lease term, because the lease contract is only concluded between the parties. So it is not automatically, be that third parties such as heirs of the lessee automatically contractor after his death. Should continue to be governed by contract, that the tenant has the opportunity, continue to lease the land.

Finally, according to the Thai law, any rental must- and lease, which is concluded for a period of more than three years, be duly registered with the Land Office. The use- Living- or building law of the foreigner must be registered at the land Office thus then. Will refrain from this, the foreigner can not invoke after three years on the contract before a Thai court.

The contract may continue to use the maximum statutory period of 30 Not exceed years. Note, that the use right after the 30 Years can be extended. A corresponding extension option should be expressly agreed by contract.

Another possibility, as the investing foreigners can secure, is an additional loan agreement with the Thai owner. The registration of a mortgage or. However, a mortgage securing the loan repayment is not possible, when the Land Office assumes, that the Thai owner only serves as a front man of the foreigner and for this only holds the property.

Is possible, that a license agreement on 30 Years or lifetime for the benefit of the beneficiary is registered and in addition a private loan contract is concluded. The registration of a mortgage can then be later than the registration, this could be prevented, that the country office of a bypass starting business.

The completion of an additional loan agreement could z. B. serve, to inform the spouse in the event of a dispute under pressure, if the spouse is the owner of the property, where one sues for the outstanding amount. Bearing in mind, that the enforceability against the Thai spouse can be problematic for that reason alone, since the acquisition of land by a Thai woman married to a foreigner may only be entered and will, if the insured with the Thai Land Department, to have acquired the property exclusively from its own resources. A loan agreement in close temporal proximity to the land acquisition, however, could turn to speak at evading and therefore be difficult enforceable.

Furthermore, the foreign purchaser as security the basic piece of paper should (Anode) or have sent to secure the loan, because the Thai owner a plot description or load can not make without this certificate.

As an additional safeguard may be agreed, that the alien receives the power of attorney from the owner, that he may sell the property at any time and rewrite.

Gladly, Mr. RA Marcus Scholz for more information on this topic and other legal issues under Thai law is under www.thairecht.com or info@thairandcht.com available.