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Supreme Court Ruling — March 2025
Thousands of expats were sold a 90-year lease that Thai law has never recognised. A landmark 2025 Supreme Court ruling has now confirmed what lawyers knew all along. Here is what it means for you.
For years, property developers and real estate agents across Thailand marketed a structure known as the 30+30+30 lease — three consecutive 30-year terms, totalling 90 years. It was presented as a secure, near-equivalent alternative to freehold land ownership for foreign buyers of villas, houses and landed properties. It was sold to thousands of British and European expats, particularly in Phuket, Koh Samui, Pattaya and Chiang Mai.
The problem is that Thai law has never permitted it. Section 540 of the Civil and Commercial Code is explicit: the maximum lease term for immovable property is 30 years. On 18 March 2025, Thailand's Supreme Court (Dika) handed down Judgment No. 4655/2566, confirming definitively that pre-agreed automatic renewal clauses for periods beyond the initial 30 years are void and unenforceable.
Supreme Court Judgment No. 4655/2566 — 18 March 2025
The Supreme Court held that pre-agreed automatic renewal clauses designed to extend a lease beyond 30 years are legally void and unenforceable. This applies regardless of the parties' agreement at the outset, any payments already made for the purported renewal periods, and registration of the original agreement with the Land Department. The ruling is now actively enforced by lower courts across Thailand.
A properly registered 30-year lease is a real property right. It is recorded on the Chanote (title deed). It binds the land even if the landowner sells to someone else. It is the legally secure part of the arrangement — and it is the only legally secure part.
Pre-agreed renewal clauses for the second and third 30-year periods are personal contractual obligations — they are not registered property rights. They do not bind the land. They do not bind future landowners. If the landowner dies, sells, or simply refuses to renew, there is no legal mechanism to compel them. The 2025 Supreme Court ruling confirmed that these clauses cannot be enforced in court.
In a typical villa or house structure, the foreign buyer owns the building under a superficies right or building ownership agreement, while the land is leased. At the end of the lease, unless a genuine new agreement is reached, the landowner is entitled to repossess the land — and in most structures, the building on it. Many expats who bought villas 20 or 25 years ago are now approaching the end of their first 30-year term. They are discovering that the renewal they paid for is legally worthless.
The 2025 ruling does not retroactively void existing leases. The first 30-year term of any registered lease remains valid and enforceable. However, if your lease included renewal clauses for a second or third 30-year period, those clauses are now of highly questionable legal value.
Engage an independent Thai lawyer to audit your lease documentation, registration papers and any side letters or supplementary agreements. Identify which rights survive Judgment 4655/2566 and which do not.
Even if you have already paid for the second 30-year period, that payment is a contractual claim against the landowner — not a registered property right. If the landowner disputes it, you will need to litigate, and the Supreme Court ruling now works against you.
Some structures can be converted to more secure arrangements — usufruct, superficies, condominium freehold if applicable, or a genuinely negotiated new lease. This must be done before the first term expires, while you still have leverage as the tenant.
Begin negotiating with the landowner now. Do not wait until the lease expires. Engage a lawyer to negotiate the new lease on commercial terms. There is no legal obligation on the landowner to renew, so your negotiating position depends entirely on your relationship with them and the current market.
The position after Judgment 4655/2566
Anything marketed as a 60-year, 90-year or 30+30+30 lease should be treated as a 30-year lease with optional renewal negotiations at the end of the first term. The developer's promises about what will happen in 2055 are worth nothing legally.
A registered 30-year leasehold is a real and legitimate property right in Thailand. It is not the same as freehold ownership — but used correctly, with the right structure, it can be a secure basis for long-term residency. The key word is correctly. Do not accept a developer's presentation of the legal position without having it independently verified.
An unregistered lease is not a real property right. It does not appear on the title deed. If the landowner sells, the new owner is not bound by an unregistered lease. Registration at the Land Department is not optional — it is the entire point. Registration costs approximately 1.1% of the stated annual rent.
A usufruct gives the right to use and benefit from property for a person's lifetime or a specified term of up to 30 years. For retirement property, a lifetime usufruct can be more secure than a fixed 30-year lease because it cannot expire while you are alive. A qualified Thai lawyer can advise on whether this structure fits your situation.
THAIBK Legal Guide 2026. This guide does not constitute legal advice. Always obtain independent qualified legal advice before any property transaction in Thailand. References: Supreme Court Judgment No. 4655/2566, Civil and Commercial Code Section 540.