THAILAND Law and Practice Contributed by: Olaf Duensing, Jerrold Kippen and Weeraya Kippen, Duensing Kippen, Ltd.
• Sap-ing-sith – this is a new right over real estate by registration at the land office and issuance of a certificate that is similar to a lease. It is applicable only to land ownership (ie, chanote) titles, buildings on such titles, and condominium units. The duration cannot exceed 30 years. It allows the holder to use the real estate as outlined in its certificate. It is inheritable and transferable without the consent of the owner. Furthermore, it allows the holder to make additions and alterations to the real estate without the owner’s con - sent. The certificate holder can also mortgage their right. 6.2 Types of Commercial Leases All leases are governed by the CCC as a specific contract. Apart from standard lease provisions, the Hire of Immovable Property for Commerce and Indus - try Act introduces a specific form of commercial lease. The Act defines commercial purposes with regard to leasing commercial property. A lease that qualifies under the Act as “commer - cial” must be: • for a commercial or industrial purpose, as defined by the Act; • for a property located in an area designated by the Act; and • registered. The commercial lease under such Act may have a term of up to 50 years. The maximum term for any other lease, whether residential or not quali - fying under the conditions of the Act, is mere - ly 30 years. In addition, a lease under the Act may also be mortgaged as security for a loan. A commercial lease under the Act is automati - cally inheritable by the tenant’s heir. Finally, a
commercial lease may be sublet or transferred without the lessor’s prior consent. 6.3 Regulation of Rents or Lease Terms Registration requirements exist in relation to the lease term. Any lease term exceeding three years must be registered with the land department in order to be enforceable for the term exceeding three years. Furthermore, any lease term cannot exceed 30 years (see 6.2 Types of Commercial Leases for exceptions). Other terms are only freely negotiable if the lease is not considered a “residential property leasing business”, which means a business that leases five or more property units to individual lessees for residential proposes. A residential property leasing business is a controlled business and certain contract terms are required by law. Any violation is subject to a fine and/or imprisonment (see 6.14 Specific Regulations ). There are no material ongoing regulation of rents or lease terms that resulted from the COVID-19 pandemic. Impact of COVID-19 No specific legislation has been enacted in relation to leases as a result of the COVID-19 pandemic. However, lessees of state properties have received certain benefits in relation to their lease. Many commercial properties remained empty during 2021 and there was no significant uptick in commercial activities at the beginning of 2022. In support of owners of real estate, the govern - ment enacted a 90% reduction of property tax rates for 2021. This reduction expired and in
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