THAILAND Law and Practice Contributed by: Olaf Duensing, Jerrold Kippen and Weeraya Kippen, Duensing Kippen, Ltd.
6.14 Specific Regulations Leases are generally governed by the CCC. However, there are two specific laws that addi - tionally govern certain leases: • the Hire of Immovable Property for Com - merce and Industry Act defines commercial purposes with regard to leasing commercial property (as described in 6.2 Types of Com- mercial Leases ); and • regulations issued under the Consumer Protection Act, which regulates residential structure (eg, house, apartment and condo - minium) leases in accordance with which any person or company that leases out five or more residential structures (with some limited exceptions) is considered a residential struc - ture “business operator”. The regulations require that: • all residential lease agreements between a business operator and the lessee include a readily legible version in Thai; and • the details of the physical condition of the property and equipment (if any) be inspected and acknowledged by the lessee and be attached to the lease agreement. 6.15 Effect of the Tenant’s Insolvency A tenant’s insolvency would commonly trigger the termination provisions of the rental agree - ment where the tenant fails to perform its obliga - tion, such as paying the agreed rental amount. Bankruptcy proceedings cannot be initiated by the debtor. However, a debtor can, under cer - tain circumstances, 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 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations A security deposit is usually held to protect the landlord should the tenant fail to meet its obli- gations. In addition, the landlord might require the tenant to provide a guarantor for the perfor - mance 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 exe - cution 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 require - ment 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
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