House contract correct? Should I sign?

[MusV]

With the new rules from May some people don't know what to do. So I got a new version of contract and I like you to read and tell me if he is ok or not. 

I do understand that I gave to pay for AC and Water Pump damage, possible also Termites damage I told him 4 years ago. I'm  afraid , because he never want repair or pay repair until I just not pay the rent. We have been 3 months without AC, two weeks with very little water, not enaugh to shower. Etc.

Thanks for feedback.

[Jeffrey346]

You should not be responsible for repairs due to normal use. That is the owner's responsibility.

[rwill]

So if a storm rips the roof off or blows something thru a window you have to pay for it?   Oh boy...

[Mickmick]

1 hour ago, rwill said:

So if a storm rips the roof off or blows something thru a window you have to pay for it?   Oh boy...

That's when I would be invoking para. 8, about the 'act of God" !

 

OP, more seriously, in my experience it is not usual for a tenant to pay for the repairs considered fair wear and tear, only for damages by negligence etc. In my BKK condo when something needed fixing, such as air-con, I would tell the owner first, then get condo management to call the regular tradesman, get a quote for anything major, then either send a bill to the owner or if payment on the spot was needed i would pay but take the money out of the rent due.

So if the AC and water pump are just worn out it should not be your responsibility, termite damage is certainly not for a tenant to pay for !

And para. 5 about the tenant paying 100% of the 10,000 baht common fee is unusual too IMHO, my landlord pays that .....of course ultimately he includes that in the rental calculations anyway !

[Mickmick]

oops, double post !

[MusV]

Thank you dear members so far. That is actually what I taught too. Because they got now idea I give them a official Thai contract and asked to do an 1:1 in english. Now it looks they got a lot more ideas w0hT in the contract could be ... listed.

 

Thank you

[MusV]

Thank you dear members so far. That is actually what I taught too. Because they got now idea I give them a official Thai contract and asked to do an 1:1 in english. Now it looks they got a lot more ideas w0hT in the contract could be ... listed.

 

Thank you

[Internatltraveler]

A new law went into effect May 1st, which applies to all "operators of five or more units."

It appears that most of the contract you have attached is correct except the points that you are responsible for all repairs. Under the current property laws in Thailand, the owner is responsible for all repairs of the property which is called immovable property and anything attached to that property, unless it is the tenants negligence or purposeful or intentional damage. All other damage and repairs of said damage are the responsibility of the operator...

 

As for all those additional charges. It is really unusual to make the tenant believe they are responsible for security, common area fees and the like. Utilities of electric, water, gas, cable t.v. etc are normally payable by the tenant. The operator is not allowed to add any additional fees to the actual cost of shared expenses such as electric (if they are shared)...But that other stuff is where they can play with the numbers and maybe be able to increase their monthly income substantially with a lower monthly rent cost.

 

It is worth talking to an attorney for sure about those additional costs.

 

Here is an actual summary provided by a real estate attorney to me personally. I was a corporate attorney in the USA so I wanted something in writing from an expert mind here in Thailand to understand the rightful laws here.

 

Section 35 bis of the Consumer Protection Act B.E. 2522 (1979) grants the Contract Committee of the Consumer Protection Board the power to designate “contract-controlled businesses,” in order to control the contents of written contracts between certain businesses and their consumers in the course of sales or services. Designation as a contract-controlled business is intended to ensure that contracts contain necessary terms and conditions and to prevent consumers from being unreasonably disadvantaged by unfair contract terms.
On February 12, 2017, the Contract Committee used that power to issue “Notification of the
Contract Committee Re: The Stipulation of Residential Property Leasing as a ContractControlled Business B.E. 2561 (2018)” (the “Notification”), which was published in the Government Gazette on February 16, 2018. As a result, residential property leasing will be deemed a contract-controlled business as of May 1, 2018.
The Notification defines a “residential property leasing business” as a business that leases (or subleases) five units of property or more to individual lessees, for residential purposes, in exchange for a fee collected by the business operator, regardless of whether or not the units are in the same building. Property is defined to include any accommodation, house, condominium unit, apartment, or other kind of residential property leased for residential purposes, excluding dormitories and hotels which are regulated under a separate regime.
The Notification imposes the following requirements:
1. Residential lease agreements must include a version in Thai and must contain the following details:
a) Name and address of the business operator and its authorized person;
b) Name and address of the lessee;
c) Name and location of the property;
d) Details of the property’s physical condition, including any items and equipment in the property;
e) Term of the lease specifying its commencement date and expiration date;
f) Rental fee rates and due dates for payment;
g) Public utility fee rates and due dates for payment;
h) Service fee rates, which must be reasonable and at the actual cost paid for the services, and due dates for payment;
i) Other fees and expenses (if any), which must be reasonable and at the actual cost paid, and due dates for payment; and
j) Amount of security deposit.
2. Invoices for the fees in items (f)-(i) above must be sent to the lessee at least seven days before their due dates, and the lessee will have the right to check information related to the payments shown in the invoices.
3. Details of the physical condition of the property and equipment (if any), inspected and acknowledged by the lessee, must be attached to the lease agreement, and a duplicate must be delivered to the lessee.
4. The security deposit must be immediately returned to the lessee at the end of the agreement, unless the business operator has to investigate any damage to ascertain whether or not it is the responsibility of the lessee. If the lessee is found not to have caused such damage, the security deposit must be returned within seven days from the end of the agreement and the business operator retaking possession of the property. The business operator is also responsible for any expenses incurred in returning the security deposit to the lessee.
5. The lessee has the right to terminate the lease agreement early provided that at least 30 days’ advance written notice is given to the business operator.
6. Any material breach for which the business operator can terminate the agreement must be clearly written in red, bold, or italic font. The business operator can only terminate the agreement if written notice has been given to the lessee to rectify the breach within 30 days of receipt and the lessee fails to do so.
7. The agreement must be made in duplicate, one of which must be given to the lessee immediately upon execution.
Under section 35 ter of the Consumer Protection Act, any residential lease agreement which does not contain the required terms above shall be interpreted to include them as implied terms.
Residential lease agreements must not contain:
1. Any waiver or limitation of the business operator’s liability from its breach of agreement or wrongful acts;
2. Any advance rental fee equivalent to more than one-month’s rent;
3. Any term allowing the business operator to change the rental fees, public utilities fees, service fees, or any other expenses before the end of the agreement;
4. Any security deposit of more than one-month’s rental fee. If the lease agreement was written prior to May 1, 2018 which included a security deposit greater than one month’s rent fee, then all excess funds are to be returned to lessee no later than the seventh day of May, 2018;
5. Any term allowing the business operator to confiscate the security deposit or advance rental fee;
6. Any term allowing the business operator or its representatives to inspect the property without prior notice;
7. Any stipulation of electricity and water supply fees exceeding the rates specified by the relevant authorities;
8. Any term allowing the business operator to prevent or obstruct the lessee’s access to the property to seize or remove the lessee’s belongings if the lessee defaults on rental fees or other expenses related to the lease of the property;
9. Any term allowing the business operator to request any fee or expense for renewing the lease;
10. Any term allowing the business operator to terminate the agreement early other than for a material breach of the lease agreement by the lessee;
11. Any term making the lessee liable for damages incurred due to ordinary wear and tear from usage of the property’s contents and equipment;
12. Any term making the lessee liable for damage to the property, contents, and equipment that was not the lessee’s fault and in force majeure situations; and
13. Any term making the lessee liable for defects to the property, contents, and equipment incurred due to ordinary wear and tear through usage.
Under section 35 quarter of the Consumer Protection Act, a residential lease agreement that includes any of the prohibited terms above shall be interpreted as not including them.
Any business operator who fails to meet the above requirements may be subject to imprisonment not exceeding one year and/or a fine not exceeding THB 100,000 (section 57 of the Consumer Protection Act).

 

Good luck. I hope this helps all readers of this forum regarding the current rental laws as of May 1 this year.

[KittenKong]

That contract seems very one-sided to me. I would never agree to it as a tenant.

 

When I rented my condo I just crossed out the things in the contract that I didnt like, and wrote things in that suited me instead. The landlord agreed to it all, and if he hadn't I would just have walked away. No shortage of condos here and precious few decent tenants.

 

In particular I made my condo rental contract very clear that the tenant (me) would only be responsible for maintenance or repairs to the value of a few hundred Baht per month max (I think it was 500B, perhaps 1000B). Anything costing more was down to the landlord.