Sub-sub Letting

[Khun Bob]

I am looking at an apartment at the moment and if I buy it, I will want to let it to other parties for the foreseeable future. The apartment is leasehold and I will be the sub-lettee. If i want to rent it out I believe that i will be sub sub letting. The contract specifies responsibilities that I have and these cannot be transferred. I have asked the sellers if it is ok for me to rent the apartment out (sub sub let) and was told no problem. However, I do not see this explicitly stated with the contract. Further, I am not clear if I can transfer the service contract onto the person(s) who would rent the flat.

If you have some past experience in this area and would care to share it, I would appreciate that. Or or you could point me in some direction that could help, that would be good too !

Cheers and look forward to hear from you.

[Sumitr Man]

Hi Khun Bob:

You need to be very careful with what you are doing here.

Section 544 of the Civil and Commercial Code

Unless otherwise provided by the contract of hire, a hirer cannot sublet or transfer his rights in the whole of the property hired to a third person.

If a hirer acts contrary to this provision, the letter may terminate the contract.

Thus, if your contract is silent on the issue of sub-letting, and you sublet, then you would subject yourself to para. 2 above.

I'm not a lawyer, but judging by the information in your post, I would think you may need to enter into a Supplemental Agreement to the the Lease Agreement wherein you set out clearly what it is you want to do and to which the Owner of the property is a signatory.

IMO, this would be even more important if you have paid a lump-sum rental payment upfront, rather than piecemeal monthly payments.

Hope this helps.

SM

Edited September 8, 2005 by Sumitr Man

[Dragonman]

Hi Khun Bob:

You need to be very careful with what you are doing here.

Section 544 of the Civil and Commercial Code

Unless otherwise provided by the contract of hire, a hirer cannot sublet or transfer his rights in the whole of the property hired to a third person.

If a hirer acts contrary to this provision, the letter may terminate the contract.

Thus, if your contract is silent on the issue of sub-letting, and you sublet, then you would subject yourself to para. 2 above.

I'm not a lawyer, but judging by the information in your post, I would think you may need to enter into a Supplemental Agreement to the the Lease Agreement wherein you set out clearly what it is you want to do and to which the Owner of the property is a signatory.

IMO, this would be even more important if you have paid a lump-sum rental payment upfront, rather than piecemeal monthly payments.

Hope this helps.

SM

<{POST_SNAPBACK}>

SM is correct. However as you have presumably not yet signed anything, get them to include a one sentence provision in the lease allowing sub letting and re-print the document.

[Khun Bob]

Thanks for your great replies

I havent entered into any agreement so far - but if i do progress further will be looking for the ability for me to rent and to transfer the responsibilites of the service contract to a third party.

Does any body know of a legal person who could assist with this and has had a positive experience with this person ?

When I get back to thailand i will try to post the documents i have so you can have a look over them.

Thanks

[Dragonman]

Thanks for your great replies

I havent entered into any agreement so far - but if i do progress further will be looking for the ability for me to rent and to transfer the responsibilites of the service contract to a third party.

Does any body know of a legal person who could assist with this and has had a positive experience with this person ?

When I get back to thailand i will try to post the documents i have so you can have a look over them.

Thanks

<{POST_SNAPBACK}>

Hi Bob, best to include any service fees in the monthly rental as part of your tenancy agreement. As your contract will be specific to you this is the way I would progress.

Happy to look over documents, but I don't recommend lawyers in Thailand as it leads to problems. Would advise you contact a Valuer to ensure the lease purchase figure stacks up based on rentals you will expect.