Thailand property: the lease of 30+30+30 is not legal

Thailand properties in Leasehold: The illegality of a Guaranteed 30+30+30 Year Lease Agreement.
Real Estate in Phuket, Property agency, Thailand property for sale
However, the legality is deeply unsafe if the lease extension or renewal is economically guaranteed by the economics of the agreement. This would be the case if the lessee pays less rent for the registered lease period than for the unregistered future lease periods. As a result, a lease agreement is under current legislation (as ruled by courts in Phuket) void if the lease payments are not mainly allocated for the first 30 years, but equally to all 30+30+30 = 90 years. Illegality means that the lease contract could be invalid from the 1st day. The registration of the lease at the land office does not change the validity of the contract. It remains void and illegal. even if it is already fully prepaid.

In Thailand property practice, the tenant usually pays about the same rental amount for a 30 Year Lease Contract than if he buys the same property.

If the customer is well advised by a lawyer, he is aware that the extension or renewal option for 1 or more additional 30 year periods is not sure and more hope than an applicable expectation. It is therefore not legally enforceable to apply this extension or renewal option clause in the lease contract.

While it makes sense to implement such an option, even if it does not result in a certain lease renewal, it is simply a promise of the current lessor.

Any lease property contract for a longer period than 30 years in Thailand may only be made by renewal of the lease contract upon its expiration. Based on supreme court judgments it is possible to say that a valid and enforceable renewal can only be made within a period of 3 years prior to the expiration of the 1st lease term (not 30 years prior to expiration)

Unfortunately, with a 30 + 30 + 30 Year Contact, it is not certain that the second lease is enforceable, as the form a longer guarantee period provided by law.

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