Thailand - New Law (Sap-Ing-Sith) On The Transferable Right To Utilise Immovable Property.

Legal News & Analysis - Asia Pacific - Thailand - Construction & Real Estate

29 October, 2019

 

The new Sap-Ing-Sith Act enacted on Royal Thai Government Gazette on 30 April 2019 will be effective on this 27 October 2019 with regulatory details and procedures coming up.

 

Sap-Ing-Sith was designed to eliminate restrictions about the rental law or lease in Thailand with three significant restrictions.

 

Firstly, the restrictions imposed by the rental law according to the Thai Commercial and Civil Code such as a contract of hire of an immovable property is exclusive for each person so it is non-transferable unless the landlord’s consent is received to sub-lease, transfer of hire, renovate or modify.

 

Secondly, another law applicable to lease, is the Lease of Immovable Property for Commercial and Industrial Purpose Act, which is not widely adopted by the public as there are only six entities that have registered the lease according to this Act. Lastly, the validity and extent of enforceability of a special lease contract (a reciprocal agreement with greater right than a conventional lease) for which it can be transferred to a tenant’s successor without registration but cannot be subleased without the landlord’s consent, still heavily relies on judicial discretions on a case-by-case basis.

 
The full article can be found from Zicolaw's site here.
 

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For more information, please contact:

 

Threenuch Bunruangthaworn, Partner, ZICO Law (Thailand) Limited (a member of ZICO Law)

threenuch@zicolaw.com