Land lease

[wowwo]

Hi,

If somebody leases land in Thailand and registers this land for

30 years at the Land Offfice, what happens if the person/company who owns the land (mostly a thai company)

goes into bankruptcy? Will you lose the land?

[sevinnow]

Interesting question, as an example I know a farang who bought a 2 year lease on a bar with 6 rooms above for 1.2 million baht, without getting a *Proper* law firm to checkout the deed and financial situation of the Landlord.

He found out after 4 months that the Bank has for-closed on the Landlord, but have granted him the extention of stay, in other words he is out when the lease expires and he can not sell the business as on going concern!

So what's he doing now, drowning his sorrows every day and telling all his(few) customers his sad story.

Moral of the story: Do some serious fact finding with a good Law firm.

Regards

Sev

???

[jayrockwell]

When the lease is registered at the Land Office another entry is added to the Nor Sor 3 or Chanote document, and you pay fees for registration, just as if the land had been sold.

You can't register the lease without the Land Document, if the owner has borrowed money on the land then the Land Document will be in the bank.

It is VITAL that a lease be registered at the Land Office, a lease is almost worthless if it isn't registered.

And the answer to your question, if you have a registered lease the new owners are bound by this lease. Except possibly if a court ruled that a lease was made by the company knowing it was in an insolvent position, or if they made an under value lease to 'secure' the property from bank actions. A difficult one to prove in Thailand and there aren't the same provisions in law as there are in the UK.

James