You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

February 23, 2018

Thailand: Residential Property Leasing Businesses to Be Subject to Contract Controls

Subscribe to Updates

The Contract Committee of the Consumer Protection Board has issued a new notification under the Consumer Protection Act designating the lease of residential property as a “contract-controlled business.”

The Notification of the Contract Committee Re: The Stipulation of Residential Property Leasing as a Contract-Controlled Business B.E. 2561 (2018) (the “Notification”), published on February 16, 2018, imposes a number of important requirements and restrictions on residential lease contracts that will come into effect on May 1, 2018.

Some of the most significant new requirements under the Notification are detailed below.

  • Residential lease agreements must include a version in Thai and contain certain details required under the Notification.
  • Details of the physical condition of the property and its contents, inspected and acknowledged by the lessee, must be attached to the lease agreement.
  • The security deposit must be immediately returned to the lessee at the end of the agreement, unless the business operator has to investigate any damage to ascertain whether or not it is the responsibility of the lessee. If the lessee is found not to have caused such damage, the security deposit must be returned within seven days from the end of the agreement and the business operator retaking possession of the property. The business operator is also responsible for any expenses incurred in returning the security deposit to the lessee. 
  • The lessee has the right to terminate the lease agreement early provided that at least 30 days’ advance written notice is given to the business operator.
  • Any material breach for which the business operator can terminate the agreement must be clearly written in red, bold, or italic font. The business operator can only terminate the agreement if written notice has been given to the lessee to rectify the breach within 30 days of receipt and the lessee fails to do so. 

Clauses with the following effects will be unlawful under the Notification:

  • Waiving or limiting the business operator’s liability for breach of agreement or wrongful acts;
  • Requiring advance rental fees equivalent to more than one-month’s rent;
  • Entitling the business operator to change the rental fees, public utilities fees, service fees, or any other expenses before the end of the agreement;
  • Requiring a security deposit equivalent to more than one-month’s rental fee;
  • Allowing confiscation of the security deposit or advance rental fee;
  • Any stipulation of electricity and water supply fees exceeding the rates specified by the relevant authorities; and
  • Any term allowing the business operator to terminate the agreement early other than for a material breach of the lease agreement by the lessee.

The Notification applies to business operators that lease (or sublease) five units of property or more to individual lessees, for residential purposes, regardless of whether or not the units are in the same building. Property includes any accommodation, house, condominium unit, apartment, or other property leased for residential purposes, excluding dormitories and hotels which are regulated under a separate regime.

Any business operator who fails to meet the above requirements may be subject to imprisonment not exceeding one year and/or a fine not exceeding THB 100,000 (section 57 of the Consumer Protection Act).

These represent only the most significant changes which will affect residential lease contracts in Thailand—a more detailed breakdown is available here.

Related Professionals

Practices

Real Estate

Location

RELATED INSIGHTS​ 

August 27, 2026
On August 25, 2026, Thailand’s Ministry of Interior issued an urgent circular letter (No. MorTor 0515.2/Wor 19097) to all provincial governors, introducing enhanced enforcement guidelines for the investigation and prosecution of suspected nominee landownership by foreign nationals. The circular letter builds upon a prior circular letter issued on April 19, 2023 (No. MorTor 0515.2/Wor 7665), which first established the framework for provincial-level investigation committees and interagency cooperation on this issue. Under Thailand’s Land Code, foreign nationals are generally prohibited from owning land. To circumvent this restriction, some foreign nationals have historically used Thai nominees, whether individuals or Thai-registered juristic persons, to hold land on their behalf. Various government enforcement measures have been progressively strengthened in recent years. The new circular letter introduces three key measures: Expanded investigation committees. Provincial authorities must add representatives from specialized investigative agencies (such as local police superintendents) to the existing Fact-Finding and Investigation Committees, giving them broader access to shareholding data, tax records, immigration information, financial records, and evidentiary materials. Proactive screening of juristic persons. Provincial Land Offices are now required to actively screen and flag juristic persons (companies, partnerships, etc.) that show risk indicators of acting as nominees for foreign land ownership. The screening results must be referred to the investigation committees, which will determine whether the entity qualifies as a “foreign national” under the Land Code or was set up to circumvent the law. Two-track enforcement actions. Based on the committee’s findings, enforcement may consist of one or both of the following: Land disposal: If a juristic person is classified as a foreign national under the law, the provincial governor sets a deadline for the entity to dispose of the land under the Land Code. Criminal prosecution: If the entity was established specifically to hold land on behalf of a foreign national in circumvention
Read More
August 20, 2026
As part of its membership in Lex Mundi, Tilleke & Gibbins has released the latest edition of its Guide to Doing Business in Thailand, providing an overview of the legal, regulatory, and commercial considerations for companies establishing or expanding operations in Thailand. The 2026 edition offers practical insight into the country’s business environment, investment framework, and operational requirements. The guide covers a wide range of topics relevant to foreign and domestic investors, including: Investment incentives and promotion schemes Financial facilities and banking regulations Exchange controls and money transfers Import and export regulations Business structures and incorporation options Requirements for establishing a business Operational and compliance considerations Business cessation and insolvency procedures Employment and labor laws Taxation Immigration and visa requirements Prepared by Tilleke & Gibbins lawyers across multiple practice areas, the publication outlines key aspects of doing business in Thailand, including foreign investment restrictions, regulatory compliance obligations, corporate structures, employment requirements, and recent legal and economic developments affecting investors. The publication forms part of Lex Mundi’s Country Guides series, a global collection of jurisdiction-specific reference materials prepared by member firms around the world. Together, these guides help companies evaluate opportunities, compare regulatory environments, and plan international business activities across multiple markets. The full Guide to Doing Business in Thailand 2026 is available through the button below.
Read More
August 11, 2026
Cambodia’s Ministry of Justice has launched a new platform on its official website to publish notices of forced sales issued by each municipal and provincial court of first instance. The platform’s stated purpose is to inform the public and facilitate greater participation in forced-sale auctions conducted in connection with court-ordered enforcement proceedings. How the Platform Works The platform publishes forced-sale notices from courts of first instance across Cambodia’s municipalities and provinces and includes a link where the public can view properties currently subject to forced sale. To participate in a forced-sale auction, individuals can download Khmer-language bidding application forms through links provided on the platform. The form typically requires the applicant’s name, sex, year of birth, identity card number and issue date, and address, together with details identifying the immovable property (including its ownership certificate number), the relevant enforcement case number and date, and the reference to the public auction or tender announcement issued by the court. Completed application forms must be submitted directly to the specific municipal or provincial court that issued the forced sale. For further inquiries about a particular forced sale, interested parties should likewise contact the relevant municipal or provincial court. Forced Sale of Immovable Property in Cambodia The publication of these notices relates to the forced sale procedure for immovable property under Cambodia’s Code of Civil Procedure (CPC). Unlike property seizure by a court, a forced sale is a compulsory execution proceeding—a subsequent enforcement step that arises only after an underlying dispute has been adjudicated and a debtor fails to pay the debt or outstanding amount due under a final and binding judgment or other enforceable title of execution. For the purposes of this procedure, the term “immovable property” under the CPC refers to land, registered buildings, jointly held shares of such property, registered
Read More
July 3, 2026
Thailand will keep its reduced government fees for property sale and mortgage registration in place for another year. Two Ministry of Interior notifications, issued following a cabinet resolution on June 30, 2026, and published in the Government Gazette on July 1, 2026, extend the previously reduced fee levels through June 30, 2027. The reduced registration fees apply to the sale and mortgage of the same property types covered in prior versions of the scheme: detached houses, semidetached houses, row houses, commercial buildings, land transferred together with such buildings, and condominium units. To be eligible for the reduced fees, the purchase price, the officially assessed value, and the mortgage amount must each not exceed THB 7 million, and the buyer must be a Thai individual. The reduced registration fees for eligible sales and mortgages are calculated as follows: Sale: 0.01% of the official assessed value (reduced from standard rate of 2%) Mortgage: 0.01% of the mortgage amount (reduced from standard rate of 1%) The reduced mortgage registration fee applies only if the mortgage is registered at the same time as the sale of the property.
Read More