THAILAND Law and Practice Contributed by: Olaf Duensing, Jerrold Kippen and Weeraya Kippen, Duensing Kippen, Ltd.
Bankruptcy proceedings cannot be initiated by the debtor. However, a debtor can, under certain circum - stances, apply for reorganisation. If the property is essential for the operation of the debtor’s business, the owner may not exercise their right to reclaim the property. 6.16 Effect of the Tenant’s Insolvency A security deposit is usually held to protect the land - lord should the tenant fail to meet its obligations. In addition, the landlord might require the tenant to pro - vide a guarantor for the performance of the tenant’s obligations. 6.17 Right to Occupy After Termination or Expiry of a Lease The tenant has no right to occupy the property once the lease has terminated/expired. However, if after expiration of the agreed period the tenant remains in possession of the property with the knowledge of the landlord and the landlord does not object, then it is considered a renewal of the contract for an indefinite period. Any eviction of the tenant requires an eviction order of the court. Only a court-appointed execution officer is entitled to take possession of the premises. 6.18 Right to Assign a Leasehold Interest An assignment or sub-lease is only possible with the approval of the landlord. An exception to this rule is a legally defined “commercial lease” (as described in 6.2 Types of Commercial Leases ). 6.19 Right to Terminate a Lease According to the CCC, termination of the lease by the landlord requires: • non-payment of rent (with a notice requirement of not less than 15 days, if the rent is payable in monthly or longer intervals); or • that after having been given notice to comply, the tenant is using the property for purposes other than those ordinary and usual or agreed in the contract; or • that after having been given notice to comply, the tenant fails to take care of the property as a person of ordinary prudence would.
A tenant may terminate a lease in accordance with the CCC if: • the property is delivered in a condition not suitable for the purpose for which it is let; or • the landlord breaches any of the specific contract conditions outlined in the CCC and does not reim - burse the tenant for any necessary and reason - able expenses incurred for the preservation of the property hired (except ordinary maintenance and petty repairs). 6.20 Registration Requirements Any lease term of more than three years must be reg - istered with the land department that has jurisdiction over the relevant immovable property in order to be enforceable for a term exceeding three years. The lease will be registered on the land title. The par - ties to the lease must provide the documents for the relevant transaction in accordance with the Licensing Facilitation Act, which requires that the land depart - ment specifies what document must be provided in advance for each transaction. A Thai translation of the lease agreement must further be provided for registra - tion purposes. To complete the relevant registration, the parties must pay a registration fee and stamp duty equal to 1.1% of the total rental amount of the registered lease term. 6.21 Forced Eviction A tenant is legally required to leave the premises when the underlying right to possess such premises is extin - guished, be it by termination or expiration. However, the eviction of a tenant requires an eviction order from the court against such tenant. After hav - ing obtained such order, the landlord will request the appointment of an execution officer who will then have the power to take possession of the premises. The length of the proceedings varies from case to case. 6.22 Termination by a Third Party A lease can be terminated by a government entity.
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