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According to statistics, the Vietnamese courts are currently handling many disputes related to buying land under the name of a Vietnamese citizen. So, is it possible to reclaim land when it is purchased under the name of a Vietnamese citizen?
Buying land under the name of a Vietnamese citizen
Buying land under the name of a Vietnamese citizen refers to a situation where a person invests money to acquire land usage rights but is not listed as the buyer on the purchase contract and land use certificate; instead, they have someone else’s name on these documents.
There are various reasons leading to this practice, such as buying property during a marriage but not wanting to disclose it to the spouse, or foreigners wishing to acquire land usage rights in Vietnam.
However, buying land under the name of a Vietnamese citizen carries several risks. The person whose name is used can unilaterally transfer the land usage rights to someone else, or in case of their death, their heirs may negotiate the division or transfer of the land usage rights.
Using someone else’s name on the red book for bank loans in Vietnam
In some cases, individuals who have land usage rights may not meet the criteria for obtaining bank loans (due to a bad credit history, lack of income documentation for debt repayment, etc.). They may ask someone else to use their name on the red book to facilitate the loan application process.
The risks in this scenario are similar to those when buying land with someone else’s name. After the loan is settled, the bank will transfer the original red book to the person listed on the book, as per the bank’s regulations. Therefore, this individual may exploit their name on the red book to unlawfully transfer or gain illicit benefits.
How to reclaim land when buying land under the name of a Vietnamese citizen?
When buying land under the name of a Vietnamese citizen or using someone else’s name for a bank loan on the red book, the true landowner needs to request the person named to sign a commitment or agreement regarding the use of their name for the land.
Reclaiming the land in such cases involves filing a lawsuit to dispute land usage rights at the competent People’s Court. In the lawsuit, the plaintiff must provide the signed commitment or agreement and request the court to invalidate the land use certificate issued to the person who stood in as the buyer.
Sample agreement for using someone else’s name on the red book in Vietnam
A sample agreement for using someone else’s name on the red book typically includes the following information:
– Personal information about the person seeking assistance
– Personal information of the person whose name is being used
– Land details (parcel number, map sheet, address, area, etc.)
– Commitments made by the person whose name is used
– Legal responsibilities if the commitments are violated
– Dispute resolution terms.
Currently, there are many sample agreements available on the internet for using someone else’s name on the red book. However, most of these templates may lack comprehensive content, which can lead to risks for those buying land under the name of a Vietnamese citizen. Therefore, land buyers should consult with a lawyer to receive full guidance and draft a comprehensive agreement or commitment to safeguard their rights in case of disputes.
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DCNH LAW
Address: 38B Tran Nhat Duat, Phuoc Hoa ward, Nha Trang city, Khanh Hoa province, Vietnam.
Phone: (+84) 343320223 – 974278893
Email: [email protected]
