Land and Building Lease Agreement

What Is a Land and Building Lease Agreement

A Land and Building Lease Agreement is a contract under which the lessor grants the lessee the right to occupy and use land together with buildings or structures thereon for a temporary period in exchange for rent. This agreement does not transfer ownership and grants only possessory and usage rights under the contract.

Legal Basis

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

• Leases exceeding three years must be registered with the competent official to be enforceable beyond three years

Essential Contract Terms

• Parties’ details

• Description of land and buildings

• Lease term, commencement and expiry, renewal

• Rent and payment schedule

• Security deposit and refund

• Repairs, maintenance, alterations

• Termination and breach provisions

Rights and Obligations

• Lessor must deliver the property in usable condition

• Lessee must use the property as agreed and maintain it

• Alterations or subleasing require consent

Common Risks

• Failure to register long-term leases

• Unclear allocation between land and building responsibilities

• Vague repair clauses

• Unclear end-of-lease rights

Safe Practices

• Execute a written and registered agreement when required

• Attach plans/photos/inventories

• Define renewal and reinstatement terms

• Keep payment records

Key Takeaway

A land and building lease grants use, not ownership.
Registration is required for leases exceeding three years.

FAQ

Q1: Must the lease be registered?
A: Yes, if the term exceeds three years.

Q2: Can the lessee alter the building?
A: Only with the lessor’s consent.

Q3: Can rent be increased during the term?
A: No, unless agreed.

Q4: Who owns improvements at expiry?
A: As specified in the contract and law.

Q5: What if it is not registered?
A: Enforceable for no more than three years.

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