Sharing Some Good Clauses For The 30 Year Lease

[JackieClear]

The first time i leased a site the lawyer gave me a pretty one sided lease favouring the landlord (my partner) (thai rak thai) so the second time a different lawyer did better but some of the clauses got rejected by landoffice time and time again because it was a backward landoffice that was not aware of law changes years ago.

Anyway there was no place on thaivisa or the internet i can find that shows ok and good clauses in english and thai so i will add a few here.

I'll have to scan the thai translations as the lawyers only give the english version on flash drive as they want return buisness and to sell the same thing over and over. thats their boring job.

"The lessor agrees this loan is repayable in any case after 25 years, or within 30 days in the event of non compliance with any of the covenants of this lease, and that his or her heirs and assignees will also be bound by this repayment and these covenants and the lessor will make these heirs and assignees aware of these conditions"

Heres A house lease that someone had shared before. Not solid enough but anyway, I'll scan the thai translation of this and another tommorow.

LEASE AGREEMENT

AGREEMENT MADE AT_______________

_________________________________

_________________________________

DATE_____________________________

This Lease Agreement is between________________________________________

__________________________________hereafter known as the Lessor and

____________________________________________________________________

__________________________________hereafter known as the lessee

It is hereby agreed as follows

1. The Lessor agrees to lease and the Lessee agrees to rent a single storey home and land ,located at_______________________in accordance to Land Title Deed No.______________________Land Number_______________________________

Book number_________________________Page number____________________

Tambon__________________________Total Land Size_____________Sq Wah

hereinafter known as the "Said Premises" for a rent period of 30 years.

2.The Lessee agrees to a one time advance payment for the entire rent period in the amount of________________Baht (_______________) to the Lessor on the date of this Agreement.The Lessor and the Lessee agree to register the leasing terms and conditions at the District Land Office within 7 days after making this agreement. The rent begins on the date of registration at the District Land Office.

3. Both parties agree that the Lessee shall have an option to renew this lease for an additional 30 years, for rental terms and conditions as mutually agreed by both parties.

4. After the date of this agreement the Lessee shall have the right to live in and conduct legal and socially acceptable businesses in the Said Premises during the term of this Lease Agreement.

5. The Lessee agrees to take care of and to preserve the Said Premises as one would do to his/her own and maintain the upkeep of and also attend to repairs of the Said Premises which may be caused by accidental or intentional actions of the Lessee or the Lessee,s subordinates.

6.The Lessee may assign or sublet the Said Premises to other Parties. Should there be the need to make official registration or other legal proceedings,the Lessor agrees to give consent and to assist the Lessee in providing proper documentation and shall not ask for any returns from the Lessee. The Lessee agrees to pay for any fee and other expenses that may arise from such proceedings,

7. The Lessee agrees not to damage or deface the Said Premises or make structural alterations or additions thereto without the written consent in writing of the Lessor and all structural alterations shall be in accordance with government and municipal guidelines. The Lessee agrees to pay any costs involved while the Lessor agrees to provide necessary documentation in obtaining such official permits.

8.Should the Lessor wish to sell the Said Premises, the Lessee shall have the first option to purchase from the Lessor for 10,000Baht (ten thousand Baht) or the option to find other party to purchase from the Lessor. Should the Lessee be unable to find such party to purchase from the Lessor the Lessor may sell Said Premises as he/she so wishes. The Said Premises shall not be sold or Title transferred during the Lease period. Debts accrued by the Lessor to outside parties shall not effect the lease terms.

9.Should Thai laws allow non-Thai citizens to purchase properties, the Lessor shall give the first right to purchase the Said Properties to the Lessee as a special condition for _________ Thousand Baht

10. The terms and conditions of this Lease Agreement obligate the heirs of both parties to fulfill to the letter and shall not be altered without mutual consent.

11. The Lessee shall be responsible for paying Building Tax (Rong Ruen Tax) and Land Tax for the duration of the lease period.

12.On the day the Lease Agreement is made, the Lessee shall inspect the Said Premises including all the fixtures and fittings therein to be of good and tenantable condition and accepts lease responsibility henceforth.

13. Should the Lessor be unable to carry out the terms and conditions stated above the Lessee have the right to ask for five million baht and the special condition amount that the Lessee has prepaid.

14 In the event of the Lessee untimely death while the Lease Agreement is still in effect,the rights and obligations of the Lessor shall be transferred to________________________________________________adress________________________

______.

Both parties having read and fully understanding its contents,agree to comply with all the terms and conditions. Ttherefore both parties have hereunder affixed their signatures in presence of two witnesses on the date at the place first written above.

___________________The Lessor

___________________The Lessee

___________________Witness

___________________Witness

[dsfbrit]

This is a good idea. I have been meaning to look into this in case I have to move the land/house out of my illegal company structure I currently have.

Is this the major thrust for this thread? ie: you want to buy a house and land, but cannot as you are a farang so you are looking to use a 30 year lease instead?

If this is the case then firstly, I would suggest you put the house in your name and just lease the land as a farang can own the house. That at least means you can do what you like to the house without permission from the lessor.

If this is not the case - then I will back out of this thread and wish you good luck.

Edited August 16, 2007 by dsfbrit

[ProThaiExpat]

There are some serious wording problems in the posted lease. Paragraph three is an agreement to agree and is deficient in concept, let alone in execution as the lanlords terms for renewal will have to be governed by a court as to their reasonableness if he chooses to be obdurate upon renewal.

There is something in there about heirs agreeing to the "letter". Just poor draftsmanship or poor translation from the Thai. Heirs are only bound by the terms of the agreement so recitations about their agreeing as a generality is superfluous.

Then again, if it is a translation from the Thai, that may explain these oddities. It is a very poorly drawn lease from an English language point of view.

[quiksilva]

That's it? One page? A lot of that language is quite vague and open to interpretation. I prefer contractual language to go into great detail, be specific and comprehensive, leaving very little 'wriggle room' for as many foreseeable eventualities as possible and to provide processes for dealing with the unforeseen (insofar as is possible).

Perhaps this is why most of the leases I deal with here are in the region of 20 pages plus. That might seem like a lot in comparison but I think that this is a good thing.

You must consider that there are NO overriding pieces of legislation governing leaseholds or defining the rights of either party in this country (okay a little can be found in the civil and commercial code but it does not approach anything like a Landlord and Tenant act). The only thing you really have is your contractual agreement with other party, so this has to be bullet proof.

The rights you take for granted back home, should be included in the contract, here are just a few things that immediately spring to mind e.g. Peaceful enjoyment, or how about your right to improve the property (what is the process for say, undertaking renovation works? On what grounds can the landlord refuse to grant their approval for these works?).

Long leases deal with substantial sums of money, your contract protects your investment and governs how it can be used. So spend some time and money on getting it done properly.

I would go into detail, but this is how I make a crust

Edited August 17, 2007 by quiksilva

[ProThaiExpat]

quicksilva: Spoken like a true professional and so spot on. I have dealt with leases in the past with over 100 pages, especially in commercial real estate lease situation, so 20 pages is quite economical in length. Saying what you mean and meaning what you say is a skill that is rarely appreciated until a legal document is tested in court. Yes there are "landlord" leases and "tenant" leases, and most lease negotiations attempt to bridge that great divide.

Your clients must be well represented if you approach your lease transactions as you post. Too bad you don't do residential, expats would be well served by your efforts. Perhaps in the next five or ten years, competent, trained real estate professionals will enter the residential field. After all, with the sales prices for high end condos in Bangkok going for what they do, professionals like you, are needed on both sides of the deal.

Edited August 17, 2007 by ProThaiExpat

[chownah]

I think a good claus could say that if the Thai wife decides to get a high priced lawyer to evict the farang husband then she must first disclose to said husband the fee she will be paying to the high priced lawyer and at the husbands discretion he may accept half of that fee and within 30 days of having received the funds he will have vacated the premesis.

It would save alot of headaches and hassles and getting something is better than getting nothing.

chownah

Edited August 17, 2007 by chownah

[JackieClear]

Please comment or correct these two clauses. There worded badly the way they are.

"The Lessor agrees to include a clause in His/Her will stating that if he/she dies the designated heir/heirs of the land must honour the lease and may only recieve the land subject to the lease and subject to all the terms and conditions contained therein or forfeot his/her inheritance rights to another heir who will honour the lease agreement on the land. "

Also what about something like this:

"The Lessor agrees to allow the lessee to seize any assets of the lessor to the alue of any fines owed to the lessee if the lessor fails to comply with or breaks any of the terms and conditions of this lease agreement"

whats a correct acceptable way of wording that.

[ProThaiExpat]

JackieClear: The first paragraph upon, which you invite corrections or comments, is superfluous and unenforceable. If the lease is recorded in the land office, which it should be in all instances, then the lease encumbrance appears on the back of the chanote and is binding on all who hold the chanote, whether it be transferees, heirs or any subsequent holder or owner. Also it is unenforceable and impractical as the lessor can change his will at any time to exclude such a provision and the will is a tangential document generally ignored. The place for the restrictions is in the recorded lease.

The second paragraph is wishful thinking, is so broad as to be confiscatory and therefor unenforceable. Wholesale forfeiture of landlord's assets without limit for an unspecified breach is unconscionable and against a public policy of fairness.

Attempting to get to the objective of the lease provision you have advanced, ie. that you want a penalty to be suffered by the landlord if he violates the lease, I would suggest a penalty provision. They are difficult to enforce but I put one in my lease anyway.

A better solution to your problem, if your talking about a 30 year lease of your primary residence is to create a one payment mortgage payable at the end of the 30 year term for the amount of money you paid for your residence. Thus, in a wife situation, where she might die, her family would be looking at paying off the entire unpaid mortgage before getting possessory rights to the property. Also, a penalty clause for "disturbance of the peaceful enjoyment of the tenant" at double the value of the premises will give any relatives pause before they try to interfere in the peaceful enjoyment of the lease by the tenant.