IS IT ALLOWED TO SELL A PORTION OF LAND UNDER JOINT OWNERSHIP BY SHARES?

Legal situation: My friend and I jointly purchased a plot of land in City X. We were granted a Land Use Rights Certificate, and both of us are co-owners. Now, due to expanding my business leading to the need of capital, I want to transfer my shares to another person. Is this allowed?

FDVN’s Opinion:

Article 218 of the 2015 Civil Code stipulates that each co-owner of a divided share has the right to dispose of their share of ownership. In case one co-owner sells their share, the other co-owners have the right of first refusal.

Such owners may sell such shares to other persons if no other owner purchases within three months in the case of immovable property, or within one month in the case of moveable property, from the date on which the other owners received notice of the sale and the conditions of the sale. The notice must be written and conditions for sale applying to other owners in common shall be similar to those applying to non-owners in common.

In the case where there is a sale of a share of the multiple ownership rights in breach of this regulation on priority purchase right, within the time limit of three months from the date of discovery of the breach, any one of the multiple owners has the right to request a court to transfer to it the rights and obligations of the purchaser; and the party at fault which caused damage shall be liable to compensate for damage.

In accordance with the above regulation, you have the right to sell your share of ownership. However, you must follow the procedures prescribed by the law mentioned above.

According to Lawyer Phạm Thảo - FDVN Law Firm

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