While marketed as a standard practice, the reality is that the 30+30+30 lease, with its promise of two automatic 30-year renewals after the initial 30-year term, has never been legally binding. It has existed in a grey area, an unspoken agreement rather than a codified legal right. The Supreme Court’s decision, citing the lack of legal precedent for automatic renewals and a clear prohibition against advertising or guaranteeing them, has now brought this precarious situation into sharp focus.
The core issue lies in the fundamental principles of Thai land law. Lease renewals are not automatic entitlements. They depend entirely on the landowner’s consent at the time of renewal. The court’s ruling underscores that there is no legal mechanism to force a landowner to agree to renew a lease, regardless of any prior assurances. Furthermore, advertising these renewals as guaranteed, a cornerstone of the 90-year lease marketing strategy, is now explicitly illegal.
The impact of this ruling is devastating for many foreign homeowners. Their contracts, once perceived as secure long-term investments, are now deemed void, leaving them vulnerable to the whims of landowners. This reality is playing out in real time with a particularly prominent case in Thalang where a smaller land developer estate is causing significant concern. The developer’s son, having inherited the freehold of the estate, is now refusing to renew the soon-to-expire 30-year leases, despite prior reassurances from the family that renewals would be a smooth and guaranteed process. This sudden shift has left homeowners in the estate scrambling for legal recourse, and feeling utterly betrayed.
“We were given clear assurances, not just by the sales team, but by the family themselves, that the renewals were a formality,” says one affected homeowner from the Thalang estate, who wishes to remain anonymous. “Now, we’re being told that our contracts are worthless. It’s a complete breach of trust.”
The situation in Thalang is not an isolated incident. It exemplifies the broader problem facing foreign homeowners across Phuket. Developers, despite knowing the legal risks, continue to market properties with the promise of 90-year leases. This blatant disregard for the Supreme Court’s ruling raises serious concerns about ethical conduct and consumer protection within the island’s property market.
The continued promotion of these legally dubious 90-year lease offers constitutes false advertising, plain and simple. It is a practice that preys on the trust of foreign investors, who are often unfamiliar with the complexities of Thai land law. The long-term consequences of this deception could severely damage Phuket’s reputation as a desirable destination for foreign investment.
The Thai authorities must take decisive action to rectify this situation. Clear and enforceable regulations are needed to protect foreign investors and restore confidence in the market. The Supreme Court’s ruling must be rigorously enforced, and developers who persist in misleading practices must be held accountable.
For potential buyers considering investing in Phuket’s property market, the message is stark: proceed with extreme caution. Seek independent legal advice from qualified professionals who are well-versed in Thai land law. Do not rely on promises of automatic lease renewals, as they carry no legal weight. The dream of a secure, long-term home on Phuket’s tropical shores has been tarnished by the harsh realities of Thai property law. The path to restoring trust requires transparency, accountability, and a commitment to upholding the rule of law.
Simon Causton is a long-time Phuket resident, founder of Citadel Phuket and author of ‘The Phuket Periodical’ newsletter. X (Twitter): @SimonCauston