Will the contract of transferring land-use right between 1980 and 1993 be recognized?

Will the contract of transferring land-use right between 1980 and 1993 be recognized?
Posted date: 04/01/2021

In 1990, I was transferred 300m2 of residential land of Mr. A (I paid full of money to Mr. A). At the time of transfer, Mr. A already obtained a land use right certificate. The transferring land-use rights contract signed by Mr. A and me was not notarized or authenticated. In 2001, I built a house on the entire land above. At the time of building the house, Mr. A knew it and had no objection. Suddenly, in 2018, Mr. A sued and asked me to return the said land area. So I would like to know if the transfer of land use rights between me and Mr. A recognized by the Court?

FDVN's opinion:

According to the information provided by you, the land use right transfer contract between you and Mr. A was established in 1990. The law of this period (from July 1, 1980 - the date the Government issued Decision No. 201/CP was before October 15, 1993 - the effective date of the 1993 Land Law) prohibited the purchase, sale, and sale of land transfer crops in any form. Therefore, in general, this contract was contrary to the provisions of law. If there is a dispute over this land use right transfer contract, the Court will cancel the contract because the contract is invalid.

However, if the land use right transfer contract has been made, depending on the case, the Court may consider recognizing the contract as prescribed at Point b, Sub-Section 2.2, Section 2, Part II, Resolution 02/2004/NQ-HDTP dated 10/8/2004  as follows:

b) For the land use right transfer contract has been performed, the court shall recognize the contract in the following cases:

b.1) The transferee of the land use right has been issued a certificate of land use right by a competent People's Committee in accordance with the law on land;

b.2) For the transferee has not been granted a land use right certificate but they have completed the procedures for applying for the certificate of land use right at the competent People's Committee, The People's Committee approved the transfer;

b.3) The transferee of the land use right has built houses, architectural works, planted perennial trees, invested in production and business has not violated the regulations on planning and the transferor hasn't objected that act's transferee.

According to the information provided by you, you have paid enough money to Mr A and built a house on the land plot which was known by Mr. A without any objection. Based on the provisions mentioned in Point b.3, there are absolute grounds for the Court to recognize the land use right transfer contract between you and Mr. A.

FDVN Law Firm


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