Legal Matters | Legal Matters |
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Learning About Legal Rental Contracts Naturally, the terms and conditions for rental contracts can vary from place to place. Below is a summary of what you will typically encounter in Bangkok:
As mentioned, normally contracts will be 1 year, however if you believe a location is perfect for you, or if you want to have more bargaining power, you can opt for a 2 or more year lease. This can help fix the rate for multiple years, and give you a lower monthly rate from the beginning. Also, please be aware that if you do not make a multiple year contract, your landlord can increase the deposit amount in subsequent years, based on any increases of rent of the property. If you are late in paying your rent (usually due by the 5th of the month, or within 5 days of your due date), you may have to pay a fee of around 15% per annum of the monthly rent for every day the rent is late (directly plagiarized from original). How We Make Your Life Easier Thailand Property Search will work with you to understand the English or original Thai contract to make sure you know what rights you have in regards to:
Renting an apartment in Bangkok is as safe an easy as it is anywhere else! And it is a good idea to make sure you fully understand your rights before moving in. We can help you with this, and so much more! Apartment vs. Condominium vs. House vs. Townhouse A description of the difference of these types of properties can be found in our Frequently Ask Questions section. However, as a foreigner, there are some things you should know about the differences when dealing with the owners, or if you ever want to purchase in Bangkok. Because of Thai law, foreigners are not able to purchase land directly in Thailand. However, foreign expatriates are allowed to purchase condominiums, but there are restrictions. In normal Thai corporations, foreigners are not allowed to own more than 49% of a company. This also applies to condominiums as well. A condominium building can have up to 49% of the floor space be owned by foreigners. Above this percentage, the building is then considered to be foreign owned. Lease vs. Leasehold vs. Freehold There are a few terms which you may want to become familiar with when it comes time to signing contracts. These terms are Lease, Leasehold and Freehold. When you rent an apartment, you will sign a Lease. This is a fixed term contract which states that you will take over payments for a property. Usually there will be a refundable deposit which is used to make sure the property is not damaged, and to make sure the tenant does not leave the premises before the contract period has expired. Leasehold and Freehold have to do with the actual land itself. A Leasehold states that you will lease the land from the owner for a fixed term. In Thailand, you are only legally able to leasehold a property for 30 years. Sometimes you will encounter a situation where a property has a leasehold contract for 30+30, or 30+30+30, which effectively extends the term of the lease to the lifetime of the leasehold tenant. Freehold is actually purchasing the property itself, with the rights to resell, lease or pass on to heirs. Foreigners are not allowed to purchase land in Thailand. As explained above, it is possible to have freehold ownership of a condominium, as long as the building is less than 49% owned by foreigners. There have been different ways of setting up companies to allow foreigners to effectively own land in Thailand. However, at the time of this writing in 2006, the government has been making it very difficult, if not impossible, for foreign owned companies up to 49% to purchase property. |
Here at Thailand Property Search, one of our jobs is to understand the "ins and outs" of the legal contracts so you don't have to. However, many people like to understand the terms and usage to better integrate into the contract process. If you are in need of a lawyer, we will be glad to refer you to a English speaking, licensed Thai lawyer who will be able to meet your needs. 
