Property Leasehold in Thailand. Leasehold is the primary structure foreigners and many Thais use to secure long-term use of land and buildings in Thailand. It looks simple — sign a 30-year lease and enjoy your plot — but the legal reality is shaped by statutory caps, registration rules, recent statutory innovations and an exacting enforcement regime. Below is a practical, lawyer-first guide to how leaseholds work in Thailand, the traps to avoid, and the drafting and due-diligence steps that materially change risk.
1. The starting point — a 30-year statutory ceiling
Under Thai law leases of immovable property cannot validly grant an unbroken right to occupy for more than 30 years; any longer term stated in the contract is automatically reduced by operation of law. Renewals must be executed as new agreements when a term ends — clauses promising “30+30+30” automatic renewals are not recognized as creating a single, longer real right and are routinely treated as personal promises only. Thai courts and registrars enforce the 30-year ceiling strictly.
(Practical implication: don’t rely on promotional “99-year” marketing unless it is grounded in a statutory reform that actually changes the legal effect — see section below on proposed law changes.)
2. Registration is decisive — Tor.Dor.11 and the Land Office mechanics
If a lease is for more than three years, it must be registered at the Land Office (Department of Lands) using the official form (Tor.Dor.11) and attaching the private lease as a schedule; the Land Office will then annotate the title deed. Without registration a long lease is weak against third-party purchasers and creditors. The Land Office registration process is not merely administrative — the registrar checks title, identity and prior encumbrances before annotating the back of the Chanote (or other title document).
Practical drafting note: to be “bankable” and enforceable against successors, your private lease should be expressly incorporated into the Tor.Dor.11 submission and the location, boundaries and title numbers must match the certified title extract exactly.
3. New statutory option — “Rights over Leasehold Asset Act” (a separate transferable right)
Thailand introduced the Rights Over Leasehold Asset Act B.E. 2562 to create a registrable, transferable “right over leasehold asset” that can be recorded and used more flexibly in finance and development structures. The Act allows the establishment of a certificate of rights over leasehold asset and confers many of the practical powers of an owner to the right-holder (use, transfer, pledge) while preserving the landowner’s underlying title. This statutory device is particularly useful for developers and investors wanting clearer marketable security in lease-heavy projects. Read the Act text closely for the limited exceptions and formalities.
(Important: the Act does not magically eliminate the Section 540 ceiling for ordinary private leases — it creates an alternative statutory property-wrapper that needs correct registration and operation to be effective.)
4. Foreigners, condos and where leasehold fits in the market
Because foreigners generally cannot hold freehold land, long leaseholds are the primary route for secure long-term residential or resort occupancy; condominiums (under the Condominium Act) are the other main option for foreign freehold ownership within the 49% foreign quota. Most condo sales marketed to foreigners therefore either sell freehold condominium title (when quota allows) or sell leasehold rights for 30 years. Practitioners must be alert to whether a project is being sold as a true lease registered at the Land Office, or simply as an internal developer promise — the latter is risky.
5. Drafting the lease — minimum musts to make it enforceable
Whether you are the landlord, tenant or lender, insist a lease include:
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Exact title references and plan (attach Land Office extract and a scaled plan).
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Term stated as 30 years (or a permitted shorter term) with the renewal mechanics described as a new agreement to be executed at the time of renewal (not as an “automatic” renewal clause).
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Registration clause obliging the lessor to register Tor.Dor.11 and specifying who pays Land Office fees.
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Transfer / sublease / assignment rules (and lessor’s consent mechanics).
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Maintenance, insurance and repair obligations and the standards required.
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Default remedies (notice, cure period, forfeiture vs damages) and an express dispute-resolution route (arbitration v court).
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Security (deposit, performance bank guarantee, retention) and whether the leasehold right may be pledged under the Rights Over Leasehold Asset Act or otherwise.
Well-drafted evidence packages — plan, survey, TOR.DOR.11 draft — make registrar acceptance more likely and enable lenders to underwrite facilities.
6. Financing and pledgeability — can leaseholds be mortgaged?
A registered lease is an encumbrance on the title and therefore has value that can be pledged. Under the Rights Over Leasehold Asset Act a right-holder can more cleanly assign or pledge the right as collateral, improving bankability. Lenders still face practical issues: the residual term matters (banks typically require >15–20 years unexpired for major lending), and priority is determined by registration order. Nominee and informal structures remain high-risk and should be avoided.
7. Enforcement, forfeiture and remedies
If the lessee defaults, the lessor’s remedies depend on contract terms and registration status. Properly registered leases give the lessor stronger remedies against third parties, and courts will enforce eviction, damages and specific performance according to the lease wording and statutory provisions. Where a lease is unregistered and the land is sold, the buyer may take free of many personal promises — the lessee’s protection is therefore much weaker. Courts also scrutinize forfeiture clauses for fairness.
8. Exit planning and resale liquidity
Because long leases can be marketable only if title and registration are clean, exit planning should include: a schedule of renewals and required notices, confirmation of who holds the original Tor.Dor.11, and lender consent where the lease underpins financing. Buyers will discount leases with short residual terms and any doubt on renewal mechanics. Where possible, use the Rights Over Leasehold Asset Act certificate to increase transferability.
9. Practical due-diligence checklist (must do)
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Obtain certified Land Office extracts for title and encumbrances.
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Confirm who actually owns the underlying title (current owner on the Land Office registry).
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Verify registration of any prior leases, mortgages or servitudes.
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Inspect the land and confirm survey boundaries against the title plan.
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Check planning/permitting, utility access and environmental constraints.
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Confirm tax, municipal fees and outstanding liabilities.
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Review the seller’s corporate authority, board minutes and fiscal records (if the lessor is a company).
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For financed deals, confirm bank consent / subordination and the residual term is bankable.
10. What’s changing — watch the 99-year proposals (and don’t assume change yet)
The Thai government has publicly discussed measures to extend permitted lease terms (reports in 2024–2025 spoke of proposals to extend long-term lease options to 99 years to stimulate investment). These proposals are politically charged and require legislative change; until a statute is enacted and published investors should treat Section 540 as the operative rule. Never rely on press speculation alone when structuring long-term investment.
Conclusion — convert paperwork into enforceable security
Leasehold in Thailand works — but only when statutory limits, Land Office registration, careful drafting and realistic financing mechanics are respected. For foreigners, focus on registered 30-year leases (or Rights Over Leasehold Asset certificates where available), insist on precise plans and registration, avoid nominee promises, and model exit value from the beginning. If you’d like, I can draft a Tor.Dor.11-compatible lease schedule and a short lender’s checklist tailored to a condo or land lease you are reviewing.