What happened
The client sought advice about a property lease supporting a substantial business investment in Phuket. The agreement stated a ten-year term, but a review showed that it had not been registered with the Land Department.
What we did
- We reviewed the existing 10-year agreement and explained the difference between the stated term and the protection provided by registration.
- The advice in this matter addressed the rule that an unregistered lease exceeding three years could be enforced for only three years, and what that meant for the client's investment.
- We discussed the risks to the client's long-term business plans and the steps needed to register the lease promptly.
The outcome in this case
The client spoke with the landlord, and both parties agreed to proceed with registration at the Land Department. The lease was registered, addressing the identified risk to the client's rights over the full agreed term.