THAILAND Law and Practice Contributed by: Olaf Duensing, Jerrold Kippen and Weeraya Kippen, Duensing Kippen, Ltd.
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 Specific Regulations 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 Effect of the Tenant’s Insolvency 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.
However, the owner might charge the installa - tion fee to the tenant. It should be noted that the utility rate must reflect the actual rate paid by the owner if the lease falls under certain regulations issued in accord - ance with the Consumer Protection Act, which regulates residential structure leases (as further explained in 6.14 Specific Regulations ). 6.11 Payment of Property Taxes Landlords are legally responsible for property tax as property owners. However, lease agreements often shift the payment burden to the tenant, especially in long-term lease agreements. 6.12 Insurance Issues The tenant must use the property for the con - tractually agreed purpose and refrain from using the property in any way that is not considered ordinary and usual. Further, the tenant has a duty to take care of the property as a person with ordinary prudence would do. 6.13 Restrictions on the Use of Real Estate The tenant must use the property for the con - tractually agreed purpose and refrain from using the property in any way that is not considered ordinary and usual. Further, the tenant has a duty to take care of the property as a person of ordi - nary prudence would do. 6.14 Tenant’s Ability to Alter and Improve Real Estate 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
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