Section 540: Maximum lease term, 30 years for immovables

It depends on the purpose. For an ordinary residential lease, no: Section 540 caps a hire of immovable property at 30 years, and any longer term is automatically reduced to 30. But a lease for genuine commercial or industrial purposes can run up to 50 years under the Lease of Immovable Property for Commercial and Industrial Purposes Act B.E. 2542 (1999), if the conditions are met (the land is in an approved commercial/industrial area or industrial estate, the investment qualifies, and the lease is registered). In both cases the term is a single registered period; a renewal is valid only as a fresh agreement made after the current lease ends: it cannot be automatic or agreed in advance (Supreme Court Decision 4655/2566).

Yes. The 30-year limit in Section 540 is the general rule, but the Lease of Immovable Property for Commercial and Industrial Purposes Act B.E. 2542 (1999) allows a lease for commercial or industrial purposes of up to 50 years, renewable for up to another 50 years. It applies only to qualifying activity: broadly, a commercial investment of at least 20 million baht, or an industry eligible for BOI promotion: on property in an approved location, and the lease must be registered with the Land Department.

No. A renewal clause is only an option; the renewal must be executed as a new contract after the current term ends. A renewal that is automatic, prepaid, or agreed in advance to create an effective term beyond 30 years is void as an attempt to circumvent Section 540 (Supreme Court Decision 4655/2566). The lessor cannot be forced to renew, and the Supreme Court has refused to enforce an advance renewal even as a personal right where its purpose was to defeat the 30-year cap.

A "reciprocal contract more than an ordinary lease" (สัญญาต่างตอบแทนยิ่งกว่าสัญญาเช่าธรรมดา) arises where the tenant gives consideration beyond ordinary rent: for example, constructing the building or paying for major improvements. The Supreme Court treats it as a binding personal contract: it is enforceable between the parties even if it was not registered, and it passes to the parties' heirs rather than ending automatically. It remains a personal right, so it does not bind a later good-faith buyer of the land, and it cannot be used to evade the 30-year cap. Whether a contract qualifies is decided case by case.