Leasing property for more than three years: what matters beyond signatures?

Check the written term alongside registration status

Before investing in improvements to a long-term rented home or commercial space, check more than the number of years and signatures. Ask what registration steps apply and whether they have been completed. This differs from agreeing on handover or rent commencement dates: it concerns legal form and enforceability. This article explains general principles for immovable-property leases, without classifying special arrangements solely by their document titles.

Section 538 distinguishes written evidence from registration

Section 538 requires written evidence signed by the party to be held liable for an action to enforce an immovable-property lease. For a lease exceeding three years, or lasting for the life of the tenant or landlord, failure to execute it in writing and register it with the competent official limits enforcement of the lease to three years under the provision. A signed agreement does not therefore always ensure enforcement for its entire stated term, nor should this statutory consequence be described simply as the whole agreement being void.

A five-year example needs a registration question

Suppose a draft provides for five years and the tenant plans immediate fit-out investment. Before using that period in a business plan, have the reviewer examine registration, responsibility for arranging it, the appointment and outstanding documents. A promise to register later should remain recorded as unfinished. Do not assume rent receipts or occupation automatically substitute for registration evidence.

Include renewal and related agreements

Provide renewal clauses, addenda, advance-payment arrangements and agreements concerning investment in the property so the lawyer can review their nature and effects. Do not convert a statement that renewal is possible into a guaranteed number of years. Dividing documents into shorter periods does not by itself establish that registration issues can always be avoided. Check whether special legislation or other relevant facts apply.

Compare registered information with the contract

If registration is said to be complete, obtain the relevant records and compare the parties, property, term and conditions with the agreement you hold. List inconsistent names or dates and identify the source of each version. Do not change dates or add wording to original documents yourself. Registration is one issue to review; it does not certify every clause or authorize every proposed use of the premises.

Prepare the file before signing or a dispute

When consulting B Law Firm, bring the complete draft or agreement, available registration records, payment and handover chronology, investment plans and unresolved registration matters. If occupation has begun, disclose the actual start date and work already undertaken. Ask the lawyer to distinguish evidence, form and case-specific next steps. Review supports better-informed planning but does not guarantee a court outcome or use of the property for the anticipated period.

References

• Thai Civil and Commercial Code, Section 538 (in Thai)
• B Law Firm: Contract drafting and review (in Thai)