Transcript of the above video:

As the title of this video suggests, we are discussing leases in Thailand, specifically we are discussing pre-existing leases on property. This could be any kind of property but the reason I thought of making this video I was inspired by a recent article from the Thaiger, that is thethaiger.com, the article is the article is titled: The Pros and Cons of Buying a Tenant Occupied Condo. Now I made a video contemporaneously with this one where we talked about condos specifically and evictions and things. In this video more than thrust is about leases. I am going to make my citation then we will do the analysis. Quoting directly: "For real estate investors looking for immediate cash flow in Thailand, buying a condo with a tenant might seem ideal. After all, it saves you the time, money and stress of looking for a new tenant. However, buying a tenant-occupied condo in Thailand has both advantages and disadvantages. If you are not careful, you could end up purchasing a costly problem from the seller. That's why it is essential to weigh the risks against the benefits and be sure you fully understand the implications. If you need to evict a tenant, the process can be complicated and costly. Keep in mind that you cannot evict tenants just because you bought the condo with the intention of living there. You have to hold off until the end of their lease. Make sure you abide by any rules that may be in force that demands the renters be informed when their leases won't be renewed." Well yeah there's a lot going on here with leases and this is good information and I urge those who are watching this video go check out that article because there is more. They go through the pros and the cons and there is a lot of good information in there and it gives people something to think about. 

The reason I am making this though is issues pertaining to leases, sometimes people here in Thailand think they have a lease whose terms, they are "ironclad" and they may not be enforceable at all for example. I mean just one example is as we have discussed in other videos, the enforceability of leasing is hinged upon the length of the lease. So for example, a lease in Thailand can be drafted and be enforceable for 3 years or under, without registration at the Land Office but anything that is more than that duration, it may be well not invalid but it may be unenforceable pursuant to the Thai Civil and Commercial Code which stipulates that anything that has more than a 3-year duration and is being used as a lease of immovable property, has to be registered with the Land Office; this is just kind of a rule of thumb, so that's just one example. So while leases are something to be concerned about because you want to at the end of the day act in good faith and not put anybody out that has operated in good faith themselves in leasing a piece of property, but there are circumstances sometimes where the lease might not be enforceable and this can be a problem for somebody who is leasing from someone who sells out from under them and then time passes and they are unable to continue renewing their lease. 

So this is all analysis which should be undertaken during the due diligence before purchasing property or real estate or even leasing Property or Real Estate here in Thailand. For those who feel a little overwhelmed by all of this, it might not be a terrible idea contact a legal professional, gain some insight and guidance into how best to proceed.