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Published on April 25, 2008

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George Morgan's letter on leasing was partly correct but, for the most part, incorrect and unnecessarily alarming.

First, it is correct that the promise of a renewal period (which is also registered with the district office) can be broken since it is not a leased right.

This is only a promise made by a lessor to a lessee for another 30-year period of leasing rights following the expiration of the first lease.

The lessor can break the promise; however, the lessee would have the right to take the lessor to court to seek a remedy in that case.

The remedy may amount to zero if the standing of the lessor becomes wobbly by then.

Thus if the lessor is the Crown Property Bureau or a company listed on the Stock Exchange, then one can almost be certain that one will be granted the second lease period without needing to resort to the courts.

Second, property leasing is governed under the Civil and Commercial Code and not the Land Code.

Under this code, the rights of the lessee are supreme and cannot be disturbed by the lessor once the 30-year period has been registered.

In general, it is correct that leasing rights cannot be assigned to a third party without the prior permission of the lessor, but heirs are eligible to inherit them once the lessee dies.

Third, it is incorrect to state that upon the lessor's death or disposal by the lessor, the lease immediately ends. Upon death or disposal, the lease obligations attached to the land pass on to the successor or the new landowner.

In either case, the new owner has no right to end the lease before the first 30-year period has expired, but has the right to continue receiving any due rental fees. This is clearly stated in the Civil and Commercial Code to protect the rights of the lessee.

Finally, leased rights are definitely "assets" and not "liabilities" unless one has misunderstood the law.

Our family has a few leased properties with 30-year leases, a renewal period and the right of assignment with one family. We have been happy with a fair return, which is comparable to that earned from freehold property.

There have been many sales made by others in which the initial amount invested has been doubled.

In conclusion, your initial article ("Longer expat house leases called for", News, April 23) was correct and George Morgan's contention was way out of line.

Songdej Praditsmanont

Bangkok

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7-Eleven the real threat for mom-and-pop shops

Does anyone really believe that Tesco Lotus's supermarkets are really having any major impact on the mom-and-pop stores we hear about? People using these local shops are more likely to be getting one or two items and are therefore not likely to put up with the hassle of going round a massive hypermarket. The real culprits here are the ubiquitous 7-Eleven shops, which are found on every second street corner. My own short street has no less than four branches, all selling the same goods and all open around the clock. It is this mass invasion that is putting little shops out of business. Of course, the 7-Eleven shops are run as franchises and are therefore Thai-owned so won't be held up for attack or for "not loving Thailand".

Jennifer Lee

Bangkok