If you are retiring in Chiang Mai or anywhere in Thailand for that matter, you might consider leasing a property and not simply buying the property. There are advantages to this and here are the basics for leaseholds! Firstly when signing a leasehold agreement be certain that the person you are signing an agreement with is the owner of the property. If it is not the owner of the property then you need to ensure that he has the right to sub-lease the apartment, villa or industrial complex to you. Many agreements do not allow for sub-letting so you need to ensure that your lawyer in Chiang Mai or anywhere in Thailand looks at the original agreement if you are sub-leasing.
Leasehold agreements fall under the Civil and Commercial Code of Thailand and this under the title of Hiring Property in Thailand. The basic of the code are simple enough:
1. The term of the agreement may not exceed 30 years;
2. The agreement has to be in writing.Verbal agreements will not be enforceable;
3. If the agreement is longer than 3 years, it must be registered with the Land Department;
4. Ensure that sub-letting clauses are covered in the agreement.
Leasehold agreements are complex as many people want to lease say a condominium for 10 years and then have the option to buy it at a fixed price which can be calculated and agreed to now. If you are looking at adding any addendum to the leasehold then it is best to speak to a lawyer to ensure that you will be able to enforce any of the clauses later. Speak to any of our lawyers in Chiang Mai or anywhere in Thailand as we have offices in all the major cities in the Kingdom.
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