Mr. Grégory Placé (gregory@legalthai.com), associate advocate at the law offices of McEvily & Collins, has found a judgment from the Supreme Court of Thailand in favour of the lessee in a case of long-term lease renewal.
In this case of 1990, called “Deeka” (No. 748/2533), the Supreme Court was giving a ruling about a landowner (lessor) who did not agree to renew a 10-year lease at the end of the term even though a clause of the contract provided a renewal for another 10 years. The Court forced the lessor to renew the lease.
So far properties which are sold to foreigners are sold either through a Thai registered company or as a long-term lease, typically 30 years renewable twice.
According to the Thai law, a lease longer than 3 years must be registered at the Land Department and its term cannot exceed 30 years. This is why most developers resort to the “renewable lease” system.
Thai Laws make no provision for renewal of a lease. It does not forbid but it does not expressly authorize it.
Now, as long as their no conflicting law or decision, this judgment sets a legal precedent that would guarantee ownership though long-term lease.
In the current political context, politicians may consider this solution.
Thailand needs to allow foreigners to own properties. But voting a law in this direction is unpopular to the Thai population. The government might not make a new law soon, but instead let the judge strengthen foreigners right in a way that would go unnoticed.
Comments