What happens to a lease over three years that is not registered
A lease of immovable property for more than three years that is not made in writing and registered with the competent official is enforceable for three years only. Anything beyond that cannot be enforced, however clearly both parties signed and agreed it.
This is not a technicality. It is the direct effect of Section 538 of the Civil and Commercial Code, and it is something a great many long-term tenants discover far too late: when the property changes hands, or when the original owner dies.
For foreign readers this matters twice over, because a registered long lease is the main lawful route to long-term use of Thai land, which foreigners cannot own outright. A leasehold that was never registered is not the protection it appears to be.
What Section 538 actually says
The provision reads, in translation: a lease of immovable property is not enforceable by action unless there is some written evidence signed by the party liable; and if the lease is for more than three years, or for the life of the lessor or lessee, it is enforceable by action for only three years unless made in writing and registered with the competent official.
Read carefully, that sets two rules, not one.
| Lease term | What is required | If it is missing |
|---|---|---|
| Three years or less | Written evidence signed by the party liable | Not enforceable by action at all |
| More than three years, or for life | Made in writing and registered with the official | Enforceable by action for three years only |
The first rule catches everyone, including someone renting a room by the year. An agreement made by conversation or chat alone, with nothing signed, cannot be enforced.
The second catches long-term tenants, especially those who have invested heavily in fitting out the premises, because that spend was justified against a term they believed they had rather than the term that is actually enforceable.
Note also that the law caps leases of immovable property at 30 years. A lease written for longer is reduced to 30 years.
What registration costs
Registration is done at the Land Office for the district where the property sits, and there are two charges.
- A registration fee of 1% of the total rent across the whole lease term, including key money if any. The same rate applies to subleases, assignments of leasehold, and leasehold passing by inheritance.
- Stamp duty of THB 1 per THB 1,000 of total rent across the lease term, which is 0.1%.
| Lease | Total rent | 1% fee | 0.1% stamp duty | Total |
|---|---|---|---|---|
| THB 20,000/month, 5 years | THB 1,200,000 | THB 12,000 | THB 1,200 | THB 13,200 |
| THB 30,000/month, 10 years | THB 3,600,000 | THB 36,000 | THB 3,600 | THB 39,600 |
| THB 50,000/month, 20 years | THB 12,000,000 | THB 120,000 | THB 12,000 | THB 132,000 |
These assume a flat rent for the whole term. Where the lease steps the rent up, the base is the total rent as stated in the lease.
The law does not say which party pays, so it has to be written into the lease, and it should be settled during negotiation rather than at the counter.
Stamp duty: when it is due and what happens if it is not paid
Stamp duty is separate from the registration fee and is due even on leases that need no registration.
Late payment carries a surcharge in two steps:
- Stamped after 15 days but within 90 days: a surcharge of 2 times the duty, or at least THB 4.
- Stamped after 90 days: a surcharge of 5 times the duty, or at least THB 10.
The penalty figures look trivial. The consequence that matters is that an instrument not properly stamped cannot be used as evidence in civil proceedings. The document drawn up to prevent a dispute becomes unusable on the day it is needed.
Duty can now be paid by affixing physical stamps, in cash through the e-Stamp system, or by filing with the Revenue Department.
Why a tenant should want registration
The reason is not confidence. It is what binds a new owner.
A registered lease appears in the registration record on the reverse of the title deed, so anyone buying the property sees it and takes it with the encumbrance. An unregistered lease can amount to an agreement between the tenant and the former owner only, and the new owner is not a party to it.
Insist on registration particularly where:
- You are spending significant capital on fit-out or improvements.
- You are leasing for a business that would lose customers if it moved.
- The property is mortgaged, or the owner is signalling a possible sale.
- The lessor is elderly and estate arrangements are unresolved.
Why lessors often resist it
Understanding this side makes the negotiation easier. Lessors usually have three reasons.
The 1% fee is cash payable today against income arriving over the next ten years. A registered leasehold makes the property harder to sell and usually attracts a lower price. And registration puts the rental income firmly on the record.
What actually works in negotiation is splitting the fee, or the tenant paying all of it in exchange for a longer term or a longer rent freeze. For a tenant with capital sunk into the premises, the fee is cheaper than the risk of having to move.
The market workaround, and why it is weaker than it looks
The most common structure in the market is a three-year lease with two written options to renew for three years each, giving something like a nine-year term without registration.
The weakness is that a renewal option is a personal agreement between the original parties, not a right attaching to the property. If the property changes hands part-way through, the new owner is not bound by it. What the tenant is left with is a damages claim against the former owner, which does not keep them in the building.
The structure suits situations where little capital is at stake and suits nobody who would be badly hurt by moving. Choose it knowing what you are trading away, not because you did not know there was another option.
The registration procedure
- Put the lease in writing in full, stating the term, the rent and any key money.
- Agree explicitly who bears the registration fee and stamp duty, and write it into the lease.
- Both parties attend the Land Office for the district where the property sits, with the original title deed or condominium ownership certificate.
- Bring ID cards and house registration for both parties. For a company, bring a certificate of incorporation issued within the period the Land Office accepts.
- The official calculates the fee from the total rent across the term. Pay and take the receipt.
- Check that the lease now appears in the registration record on the reverse of the deed, and keep a copy.
One caution: where the property is mortgaged, the mortgagee bank will usually need to consent first. Raise that before agreeing terms, not on the day of the appointment.
Frequently asked questions
Which leases must be registered in Thailand
Leases of more than three years, or for the life of the lessor or lessee, must be made in writing and registered with the competent official. Otherwise they are enforceable by action for three years only, under Section 538 of the Civil and Commercial Code.
What does lease registration cost
1% of the total rent across the whole lease term, including key money if any. The same rate applies to subleases, assignments of leasehold and leasehold inherited.
How is stamp duty on a lease calculated
THB 1 per THB 1,000 of total rent across the term, which is 0.1%. A ten-year lease at THB 30,000 a month has total rent of THB 3,600,000 and attracts THB 3,600 of stamp duty.
What happens if a lease is not stamped
A surcharge of 2 times the duty if stamped after 15 days but within 90, and 5 times after 90 days. More seriously, an improperly stamped instrument cannot be used as evidence in civil proceedings.
Can a 3+3+3 renewal structure replace registration
Not in terms of protection. A renewal option binds only the original parties and does not bind a new owner if the property is sold, so a tenant with significant capital in the premises should not rely on it.
What is the maximum lease term in Thailand
30 years. A lease written for longer is reduced to 30 years, and continuing beyond it requires a new lease, newly registered, at expiry.
Who pays the registration fee
The law does not say, so it must be agreed and written into the lease. In practice it is either split or paid in full by the tenant in exchange for other terms.
In short
An unregistered lease over three years is enforceable for three years, and a lease of immovable property with nothing signed is not enforceable at all.
Doing it properly costs 1% of the rent across the term plus 0.1% stamp duty, which is a figure you can calculate in advance and bring to the negotiation.
There is one question to ask yourself: if this property were sold next month, would you still be here? If that answer matters more to you than the fee, register the lease.
For what a residential lease may not contain, see the 2025 rental contract control announcement. Browse houses and condominiums for rent, and owners letting long term can see our rental management service.