Section Code: 0537 - 0545

Thai Civil and Commercial Code

SPECIFIC CONTRACTS
TITLE IV
RENTING PROPERTY
Chapter I

General Provisions

Section 537. Renting or Leasing Property

A hire of property is a contract whereby a person, called the letter, agrees to let another person, called the hirer, have the use or benefit of a property for a limited period of time and the hirer agrees to pay rent therefore.

Section 538. Renting Property

A hire of immovable property is not enforceable by action unless there be some written evidence signed by the party liable. If the hire is for more than three years or for the life of the letter or hirer, it is enforceable only for three years unless it is made in writing and registered by the competent official.

Section 539. Contract Costs

Costs of a contract of hire are borne by both parties equally.

Section 540. Lease cannot exceed 30 years

The duration of a hire of immovable property cannot exceed thirty years. If it is made for a longer period, such period shall be reduced to thirty years. The aforesaid period may be renewed, but it must not exceed thirty years from the time of renewal.

Section 541. Contract

Contract of hire may be made for the duration of the life of the letter or of the hirer

Section 542

When several persons claim the same movable property under different contracts of hire, the hirer who has first taken possession of the property by virtue of his contract shall be preferred.

Section 543. Multiple Claims for Same Property

When several persons claim the same immovable property under different contracts of hire:

  1. If none of the contracts is required by law to be registered, the hirer who has first taken possession of the property by virtue of his contract shall be preferred.
  2. If all the contracts are required by law to be registered, the hirer whose contract was first registered shall be preferred.
  3. If there is a conflict between a contract which is required by law, and a contract which is not required by law, to be registered, the hirer whose contract has been registered shall be preferred, unless the other hirer has taken possession of the property by virtue of his contract before the date of registration.

Section 544. No subletting or transfer to third person without authorization

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

Section 545. Authorization to Sublet

If the hirer rightfully sublets the property hired, the sub-hirer is directly liable to the lessor. In such case a payment of rent made in advance by the sub-hirer to the hirer who sublets cannot be set up against the letter.

The provisions does not prevent the lessor from exercising his rights against the hirer.

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