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ResourcesThailand Real Estate & Property LawTitleSelling, Assignment, or Sublease of a Lease in Thailand

Selling, Assignment, or Sublease of a Lease in Thailand

Transcript of the above video:

As the title of this video suggests we are discussing a lease in Thailand. That is Thai lease so we are talking about a leasehold agreement between a property owner, and I am going to do this more in the context of a foreign National in Thailand.

Foreigners are entitled to engage in leases in Thailand. Now actual property ownership or real estate ownership for a foreigner is going to be difficult in Thailand because of the various restrictions placed on foreign nationals owning actual Thai property. So I am not going to get into all of that. We have done a lot of videos on this channel about foreign ownership of Thai property and the restrictions associated therewith.

This video is talking about in a sense selling a lease. A lot of foreigners, especially in a business context, they will have a lease, either a relatively short-term lease sometimes three years or less or a relatively long-term lease and these Property Owners or I should say these lessees oftentimes there may be a change in their lifestyle. They may be looking to discontinue doing business and they want to for lack of a better term, sell their lease. We call this is an assignment, sometimes called a sublease, so you may be subleasing your property. To be clear, assignment, sublease sometimes called novation, changing the terms of the lease to another person, it may or may not be possible depending on the terms of the lease itself. So those who have a Lease in Thailand and are looking to dispose of it, to assign it over to somebody else, to transfer that lease essentially, those folks it is probably a good idea to contact a legal professional in order to ascertain what their abilities are, what their capabilities are with respect to being able to alienate that property, to transfer that lease, to change that lease over because there may be restrictions in the lease itself. If there aren't, then we have to fall back to utilizing the terms of the Thai Civil and Commercial Code. Many of our Attorneys here in the office deal with these matters on a rather frequent basis. Please feel free to contact us. We can definitely assist with the transfer of lease rights and lease obligations from one lessee to another or a sublease, a possible assignment of a lease or changing a lease with the landlord which often times is referred to as novation; Novation of a Lease. 

So the thing to take away from this video is, definitely it may be possible to transfer one's lease rights in Thailand depending on the terms of the lease and where it is possible yes there is a body of law which covers that and those who want to do so effectively and efficiently, are strongly encouraged to contact a legal professional here in Thailand, a Thai legal professional in order to properly deal with that so as to affect a proper transfer, obtain one's compensation in a timely manner and move on with one's business.