Mike in Samui sunset-and-wave logomike in samui.

Article 3: The Thailand Land Lease and the Side Agreement Explained

A foreigner leasing land in Thailand typically ends up with two documents: a lease that is registered at the Land Department, and a private agreement that records everything else about the deal. My attorney drafted both in under a week, in Thai and English in the same document. Here is what each one does.

Two documents, two different jobs

Registered leaseSide (additional terms) agreement
Where it livesRegistered at the Land DepartmentA private agreement with the seller, not registered
What it coversThe land, the area, the 30-year term, residential useRenewal, transfer, resale and what happens if there is a problem
Backed byThai lawTrust and the contract between the parties

The lease lists every registered owner of the land, who each give written consent. The side agreement is referred to by the lease but is not recorded with it.

How mine is set up

  • One registered lease for my 300 square meter portion, with a map attached to the lease showing the plot in red.
  • Paid in full up front. The registered lease sets out payments every five years, and the side agreement confirms that my up-front payment covers all 30 years and every renewal. With a developer, annual payments are more common.
  • My rights: build under Thai law, zoning and permits; own the building; sublease or rent it out; or transfer the lease.

What my side agreement covers

  • It takes effect only once the lease is registered and the seller has been paid in full.
  • Renewal: a new lease is drafted at least six months before expiry, and the seller agrees not to refuse or obstruct it.
  • If the lease ends and the seller does not renew or buy the building, I may remove the building and everything in it, with at least 90 days of access.
  • Transfer or sublease: to anyone, Thai, foreign or a company, at a price I set, without needing the seller's consent. The seller cooperates in signing a new 30-year lease, with costs paid by me or the transferee.
  • Selling the land and building: to a Thai person or company, with the seller cooperating and signing the documents.
  • The original title deed: held by me or by a bank, and only released with both sides' signatures. In my case it is on hold while the larger parcel is subdivided (see Article 4).
  • Breach: if the seller breaches, I can terminate and claim back the money I paid.
  • Heirs: rights pass to both sides' heirs, and death does not end the agreement.
  • Disputes and changes: good-faith negotiation first, and any amendment must be in writing and signed by both parties.

The signing requirement

The lease needs three wet-ink originals: one for me, one for the seller and one for the Land Department. It cannot be signed electronically and is signed in front of a land officer. The side agreement is a separate document and doesn't need the same process.

What it cost

DocumentAttorney fee
Lease drafting (two leases drafted together)35,000 THB
Side agreement25,000 THB

These are my attorney's fees. Prices vary by firm and by how much negotiation is involved, so get a written quote before work starts.

Checklist: what to confirm before you sign

  • Every owner and co-owner on the title, and written consent from each
  • Which portion you are leasing, its area, and the attached map
  • How the registered lease describes payments, and that the side agreement matches
  • Who holds the original title deed
  • Renewal, transfer and sale rights in writing, and whether the seller must cooperate
  • Names, dates and spellings correct in every document
  • Three wet-ink originals arranged for signing
  • Who owns and maintains shared roads, and whether you may run utilities through them

A reminder about trust

Because Thai law doesn't guarantee the terms in the side agreement, the agreement is only as strong as the people behind it. Be honest with yourself about how much trust is involved, and take advice from your own attorney on how to reduce the risk.

Next step

With the documents drafted, the money needs to be handled safely. Read Article 4 on escrow, and download the free guide for all five steps.

This is my personal experience, not legal advice. Always use your own Thai attorney.

Get the free guide

MIKE IN SAMUI

Your privacy matters.

When you sign up, your first name and email are used only to send you the free guide and occasional updates from Mike in Samui about the journey.

Kit processes your signup, sends its confirmation email, and manages the mailing list and unsubscribes. This landing page does not keep its own copy of your name or email. Your details are not sold or shared for advertising.

The introduction offer is completely optional. Both guide downloads are available without answering introduction questions or agreeing to phone contact.

If you choose an introduction and submit your request, FormSubmit sends your name, email, selected services, timeframe, any phone number you provide, and consent details to Mike by email. FormSubmit retains submissions privately for 30 days; the email is also held in Mike's mailbox. This site keeps no backup log of your contact details or introduction answers. Only with your checked consent may Mike contact you by phone, WhatsApp or text about introductions.

You can withdraw your introduction-contact consent by telling Mike when he contacts you. Email updates still include an unsubscribe link. This is a free introduction.

You can unsubscribe at any time using the unsubscribe link in any update email. Please don't enter sensitive information in the signup form.

Personal experience, not legal advice. No pressure, no spam.