Duties and Liabilities of the Lessee and Lessor – Thailand Property Lease
In every contract of lease, there is always a lessee (also known as the “hirer” under Thai law) and a lessor (who is also called the “letter”). The lessee, as well as the lessor, has rights and duties under the contract of lease.
Thai law allows foreigners to lease real properties in Thailand such as land and houses for a maximum duration of thirty (30) years. With this, foreigners get to enjoy their rights as lessees/hirers. However, to become a lessee entails duties and liabilities over the leased property and towards the lessor/letter as well.
Some of the duties and liabilities of the Lessee are as follows:
- The lessee is bound to pay the rent on time.
- The lessee can only use the leased property according to what is provided in the lease contract and the usual and ordinary purpose therein.
- The lessee is bound to take as much care of the leased property as a person of ordinary prudence would take care of his own property, and to do ordinary maintenance and petty repairs thereof.
- The lessee is bound to allow the lessor or his agent(s) to inspect the leased property at a reasonable time.
- The lessee must not make alterations or addition to the leased property without the consent of the lessor.
- The lessee is liable for any loss or damage caused to the leased property by his own fault or by the fault of persons living with him or being his sub-lessee. But he is not liable for loss or damage resulting from proper use.
The lessee is liable to the lessor for any injury resulting from the delay occasioned by his failure to forthwith inform the lessor of the following occurrences:
- If the leased property is in need of repairs by the lessor;
- If a preventive measure is required for avoiding a danger;
- If a third person encroaches on the leased property or claims a right over it.
However, the lessee is not liable for the aforementioned occurrences if the lessor has knowledge of it already.
- The lessor can no longer maintain an action against the lessee in connection with the lease contract after 6 (six) months from the time of the return of the leased property.
The lessor, on the other hand, has the following duties and liabilities:
- The lessor is bound to deliver the leased property to the lessee in good condition.
- The lessor is bound to reimburse the lessee for any necessary and reasonable expenses incurred by the latter for the preservation of the leased property. However, the lessee shoulders the expenses made for ordinary maintenance and petty repairs of the leased property.
- In case the leased property is not delivered in a condition suitable for the purpose on which it is leased, the lessee may terminate the contract.