Section 537 — Hire of property (lease) — definition
Statutory text (Thai original)
อันว่าเช่าทรัพย์สินนั้น คือสัญญาซึ่งบุคคลคนหนึ่งเรียกว่า ผู้ให้เช่า ตกลงให้บุคคลอีกคนหนึ่งเรียกว่า ผู้เช่า ได้ใช้หรือได้รับประโยชน์ในทรัพย์สินอย่างใดอย่างหนึ่งชั่วระยะเวลาอันมีจำกัด และผู้เช่าตกลงจะให้ค่าเช่าเพื่อการนั้น
Verbatim from the Royal Gazette / Office of the Council of State
English translation
A hire of property is a contract whereby a person, called the letter, agrees to let another person, called the hirer, have the use or benefit of a property for a limited period of time and the hirer agrees to pay rent therefore.
This English translation is provided for reference only and has not yet been firm-verified — always rely on the Thai original.
Firm annotation
Section 537 is the gateway provision for all lease law in Thailand — residential, commercial, agricultural, equipment. A lease creates a personal right (sit-in-personam), not a real right against third parties — meaning if the landlord sells the land, the buyer is not automatically bound by the lease unless it was registered (§538). For longer-term commercial deals, foreign clients should consider either (a) a registered 30-year lease + renewal options, or (b) the alternative real-right structures of usufruct (§1417) or superficies (§1410).
Why this matters in practice
Lawyers: Courts look to the substance of the agreement — a contract labelled a 'lease' that in reality transfers ownership rights will be re-characterised as a sale under Section 453. The key indicators of a genuine lease are: temporary use, rent, and no transfer of ownership. Laypeople: You are a lessee, not an owner — you may use the property but cannot sell or mortgage it, and it must be returned at the end of the term.
Legislative history
Part of the original Civil and Commercial Code codification; no major subsequent amendment.
Supreme Court decisions interpreting this section
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Supreme Court Judgment No. 17923/2557 (2014) ★ Landmark
Courts will re-characterise a contract labelled a lease as a sale when its true substance is a transfer of ownership.
A contract labelled a 'lease' was re-characterised as a sale under Section 453 because its true purpose was to transfer rights and ownership of land rather than to grant temporary use under Section 537.
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Supreme Court Judgment No. 6229/2541 (1998)
A lease entered into by a duly authorised agent binds the principal landowner as if the principal had signed directly.
The lessor granted a lease of land through a duly authorised agent. The Supreme Court confirmed the validity of a lease agreement made through an attorney-in-fact with proper authority, binding the landowner as lessor.
Curated decisions with case numbers verified against the Supreme Court database. English renderings are the firm's editorial translation for study.
Frequently asked questions
What is the difference between a lease and a sale in Thai law?
In a sale (Section 453), ownership of the property transfers from seller to buyer for a price. In a lease (Section 537), ownership stays with the lessor — the lessee only gets the right to use the property for a fixed period in exchange for rent. Thai courts look at the substance of the transaction, not just the name on the contract.
Can a tenant sublease the property to someone else?
Not without the lessor's consent. Subleasing without consent is a breach of the lease agreement. Even a sublease requires written evidence to be enforceable under Section 538, and it cannot exceed the remaining term of the head lease.