Tax & Legal News Flash | Issue 36
Recently, the Committee on Contracts of the Consumer Protection Board has issued the Notification of the Committee on Contracts Re: Prescribing Residential Property Lease Business as Contract-Controlled Business (“Notification”). The Notification will become effective on 1 May 2018.
This Notification applies to the business of leasing premises to individual tenants (including sub-tenant) for residential purpose of at least five units or more, regardless of whether or not such units are located within the same building.
Under the Notification, such leasing premises can include rooms, houses, condominium units, apartments or other kinds of residence, but exclude dormitories under the Dormitory Act and hotels under the Hotel Act.
|Inspection of leased premises||
|Expiration and termination of lease||
The Notification specifies several requirements and restrictions on terms and conditions of the residential lease contracts. In addition, non-compliance of the Notification could result in the business operators being liable under the Consumer Protection Act which consists of criminal penalties.
Accordingly, the lease business operators should revisit the residential lease contracts with their individual tenants to ensure the compliance with the Notification.
We welcome any opportunity to discuss the relevance of this matter upon request.
KPMG in Thailand’s Legal Services Team offers a wide range of practical legal solutions. For more information, please visit https://home.kpmg/th/en/home/services/tax/legal-services.html.
© 2019 KPMG Phoomchai Tax Ltd., a Thailand limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.