The right to transfer lease rights in Thailand or sublease must be included in the lease contract and must be part of the contractual agreement with the lessor. The subject of sublease and assignment must be included in a lease contract or the lessee is according to Thai hire of property laws not allowed to sub-rent or assign his lease right.

Section 544 Civil and Commercial Code: 'Unless otherwise provided by the contract of hire, a hirer cannot sublet or transfer his rights in the whole or part of the property hired to a third person'.

Sub-lease:

In the event of sub lease the original lessee in the lease agreement remains responsible for the terms of the lease contract agreement. The lease remains binding upon the original lessee. In case of sub lease the lessee in the lease agreement executes a new rental contract with with the sub-lessee.

For example, in case the lessee leases raw land and the parties have not made an agreement in the contract to lease the land that the lessee would be allowed to sub-lease the land, if then the lessee builds a house on the land he is allowed to rent out the house. This is not sub lease of the land and the lessee is not in breach of his contractual lease obligations (Scj. 2237/1981). Should the lease contract have stated that the lessee is not allowed to let someone else use the land, then in the same situation, it will be seen as breach of the lease contract (Scj. 6843/ 1998).

Transfer of lease rights under a Thai lease contract:

In an assignment of the lease agreement the transferee lessee takes the place of the original lessee. The rights under the lease contract agreement will transfer subject to the lease. The assignment must be in writing (Section 306 Civil and Commercial Code). Assignment of the lease is subject to permission of the owner and lessor of the property.

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