Land Lease Agreement

What Is a Land Lease Agreement

A Land Lease Agreement is a contract whereby the lessor grants the lessee the right to occupy and use vacant land for a temporary period in exchange for rent. This agreement does not transfer ownership of the land.

Legal Basis

• Thai Civil and Commercial Code, Book III, Title IX “Hire of Property”

• Land leases exceeding three years must be registered to be enforceable beyond three years

Essential Contract Terms

• Parties’ details

• Land description (title deed number, area, location)

• Permitted use

• Lease term and renewal

• Rent and payment terms

• Security deposit

• Restrictions on transfer or sublease

• Termination and breach provisions

Rights and Obligations

• Lessor must deliver usable land

• Lessee must use land as agreed

• Alteration or construction requires consent

• Subleasing requires approval

Common Risks

• Failure to register long-term leases

• Unclear permitted use

• Unclear land reinstatement

• No early termination provisions

Safe Practices

• Execute a written agreement

• Register leases exceeding three years

• Clearly define permitted use

• Attach land plans or maps

Key Takeaway

A land lease grants temporary usage rights, not ownership.
Registration is mandatory for leases over three years.

FAQ

Q1: Must a land lease be registered?
A: Yes, if it exceeds three years.

Q2: Can the lessee build on the land?
A: Only with the lessor’s consent.

Q3: Can the lease be assigned?
A: Only with written approval.

Q4: How must the land be returned?
A: In accordance with the contract terms.

Q5: What if unregistered?
A: Enforceable for no more than three years.

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