“Erosion of Rights”<\/strong><\/span> refers to a situation where the owner of property rights has their rights diminished or is subject to restrictions on the land they occupy. This erosion can occur due to government regulations or because the owner has registered a waiver of their rights on the land to transfer it to another party.<\/p>

There are 7 types of rights erosion, as follows:<\/p>

1. Transfer Restrictions<\/strong><\/span><\/p>

        This may arise from the issuance of a land title (N.S.3) without any development or if there is a prior land use certificate (S.K.1). Authorities may impose a transfer restriction for 10 years, commonly referred to as a “red title deed.” In this case, if there are still many years left on the restriction, such as 8 years, it creates a problem where the owner cannot sell the property until the period expires.<\/p>

2. Lease Agreements<\/strong><\/span><\/p>

        Thai law stipulates that lease agreements lasting more than 3 years must be registered with the land office. Therefore, it is essential to check how many years are left on the lease and what the rental rate is. This verification cannot be done for leases shorter than 3 years made privately or for leases concerning only buildings, which must be registered at the district office. These two types of leases will appear in the title deed's transaction records, but it is necessary to conduct a field survey personally.<\/p>

3. Right of Use<\/strong><\/span><\/p>

        This is a right where the holder has the right to possess, use, or benefit from the property within a legally defined period of no more than 30 years or for the lifetime of the right holder. Once this right is registered to someone, when entering into a lease agreement, the tenant must contract with the right holder instead of the owner who holds the title.<\/p>

4. Right to Reside<\/strong><\/span><\/p>

        This is the right of a resident to live in a building without paying rent, which may last no longer than 30 years or for the lifetime of the right holder.<\/p>

5. Rights Over the Ground<\/strong><\/span><\/p>

        This refers to the right to own buildings, structures, or crops on or beneath the land, which may also be limited to a period of no more than 30 years or for the lifetime of the landowner or the right holder. Upon expiration, the right holder has the right to remove the structures.<\/p>

6. Encumbrances<\/strong><\/span><\/p>

        A person named as a beneficiary has the right to receive debt payments from that property periodically or to use or benefit from the property as specified. If no duration is specified, it is presumed to last for the lifetime of the beneficiary or for no more than 30 years.<\/p>

7. Easements<\/strong><\/span><\/p>

        Land may be subject to easements that require the owner to accept certain burdens affecting their property or to refrain from exercising certain rights inherent in their ownership. A common type of easement is allowing access through another parcel of land.<\/p>

        A particular point of caution regarding easements is the broad and indefinite nature of rights erosion. If no duration is specified, it means the easement will remain attached to the land indefinitely.

        Therefore, whenever purchasing land or real estate, the first step is to visit the land office to check for any existing rights erosion on that parcel. If there are any, it is essential to determine the nature and duration of those rights.

        Additionally, reviewing property documents such as title deeds or N.S.3 by examining the records will help identify any existing rights erosion on the land and provide insight into the property's history, as all transactions related to that parcel will be recorded in the title deed's transaction records.

According to Section 475, rights erosion occurs when a buyer is challenged by another party who has superior rights to the property purchased, disrupting the buyer's peaceful possession and preventing them from obtaining ownership. The seller is thus liable for this outcome. The seller's liability for rights erosion arises by law, similar to liability for defects, meaning that even if there is no agreement for the seller to be liable, they still are, and even if the seller is unaware of the cause of the rights erosion, they remain liable.

          There are two scenarios of rights erosion:<\/p>

           1. An external party has rights over the property being sold prior to or at the time of the sale agreement.<\/strong><\/p>

           2. The seller's fault, where the seller must be liable for the rights erosion that occurs.<\/strong><\/p>

           The characteristics of rights erosion that make the seller liable must include:<\/p>

1. The rights of another party that challenge or interfere with the existing rights over the property must be legally recognized rights and must be superior to the seller's rights.<\/strong><\/p>

2. The rights of another party that challenge or interfere must exist at the time of sale, not arise after the sale agreement. If the rights arise after, the seller is not liable.<\/strong><\/p>

3. The rights of another party that challenge or interfere may arise after the sale agreement, but the seller may still be liable if the rights erosion occurs due to the seller's fault.<\/strong><\/p>

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