Is it legal to buy housing in enforcement?

I and Ms. A both bought Mr. B's land and were confirmed by the Land Registration Office of District P on May 15, 2018. On June 22, 2018, Ms. A transferred the land use right which I and Ms. A previously bought from Mr. B to me. The transferred contract has been notarized. However, in the process of conveyancing, the Registration Office announced that Ms. A's land use rights are being enforced, so she cannot carry out the conveyancing. On August 22, 2018, District P Enforcement Department issued a decision on suspending the registration and transfer of use rights, changing the current state of property for the above land plot to avoid dispersing assets of Ms. A when she has not yet fulfilled her obligations under the Judgment No. 179/DSPT dated on August 21, 2013. Is the decision of Judgment Executioner legal? What should I do to protect my rights?

FDVN’s opinion:

Sincerely thank you for your concerning our legal consulting service. We are glad to give you our advice for your question. 

[1]. Law provision on enforcement:

According to Article 188 Land Law 2013 about one of the conditions to transfer of land use rights: “The land use rights are not distrained to secure judgment enforcement”.

Besides, according to Clause 1 Article 66: “Enforcers may, at their own will or when requested in writing by involved parties, promptly apply measures to secure judgment enforcement in order to prevent dispersal or destruction of assets or shirking of judgment enforcement. When applying measures to secure judgment enforcement, enforcers are not required to notify such in advance to involved parties.”

According to Article 19 Decree No. 62/2015/ND-CP dated on July 18, 2015 guiding for Civil judgment enforcement Law: “From the day on which the decision on suspension of registration, transfer of right to ownership, right to enjoyment or right to make changes to property, relevant entities shall not register, transfer right to ownership, right to enjoyment or right to make changes to the property until receiving another decision on termination of the suspension from the enforcement officer.”

Besides, in the time that Appellate Judgment No. 179/DSPT dated on August 21, 2013, went into effect, it was stated in Clause 1 Article 6 Circular 14/2010/TTLT-BTP-TANDTC-VKSNDTC dated on July 26, 2010, guiding problems on the procedures for implementation of civil judgment enforcement and compression in the implementation of civil judgment enforcement:

From the time of having the first instance judgment or decision, the judgment debtors must sell, convert, transfer, donate, mortgage, guarantee or pledge their properties to other persons, without acknowledging if their assets are not used for the execution of judgments, such properties shall still be distrained for judgment execution, unless otherwise provided for by law. If there is a dispute, the executor shall guide the litigant to initiate a lawsuit at the Court to protect his legitimate rights and interests. After the 30-day time limit has expired, from the date of being notified without a lawsuit, the judgment-executing agency shall handle the property for judgment execution.

From the time when there is a legally enforceable judgment or decision or in the case when a preventive measure, provisional emergency measures, enforcement or security measures are enforced, properties are sold, converted, transferred, donated, mortgaged, guaranteed, pledged to others, the judgment debtors do not recognize their properties, the properties are distrained and handled for judgment execution.

Thus, according to above provisions, Ms. A is enforced to execute judgment No. 179/DSPT dated on August 21, 2013 but in May 2018, Ms. A and you received the land use rights from Mr. B, therefore, at this time, Ms. A did not use her property to execute the judgment but continues to transfer and did not use the number of land use rights transferred to enforce the civil judgment, the land area shall be distrained and processed to ensure judgment execution.

[2]. Protect transferee’s rights and interests in the case of carrying out temporary emergency measures.

In this case, you and Ms. A have signed a contract of transferring land-use rights and have been notarized. However, it is impossible to carry out the conveyancing because her property is being subjected to preventive measures. Therefore, to protect your legitimate rights and interests, you shall absolutely sue Mrs. B to return all the amount you have paid and claim for compensation.

Above are the advice of FDVN Limited Law Firm base on studying law provisions and theories. We hope that our opinions would be useful.

 Legal Expert: Duong Hoai Thuong

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