Vietnam: Shall the transferor bear the court fee for the amount previously paid by the transferee in case the court declares that the contract of transfer of land use rights is invalid?

Mr. A transferred the land to Mr. B for 02 billion VND, Mr. B paid Mr. A 500 million VND but then the two parties had a dispute, Mr. B asked to declare the contract between him and Mr. A. A null and void. The court declared that the contract for transfer of land use right between Mr. A and Mr. B null and void and the parties shall return to each other what they had received. So, in this case, does Mr. A have to bear the court fee of the amount of VND 500 million to be paid to Mr. B?

What are the regulations on court fee advance, charge advance; Court fees and charges in Vietnam?

Pursuant to Article 143 of the 2015 Civil Procedure Code as follows:

- Court fee advances shall include first-instance Court fee advances and appellate Court fee advances.

- Court fees shall include first-instance Court fees and appellate Court fees.

- Charge advances for civil matter resolution shall include first-instance charge advances and appellate charge advances.

- Charges shall include charges for providing copies of judgments, decisions or other documents of courts, charges for submitting applications requesting Courts to settle civil matters, charges for settlement of civil matters and other charges stipulated by law.

What are the regulations on obligation to bear first-instance Court fees in Vietnam?

Pursuant to Article 147 of the 2015 Civil Procedure Code as follows:

Article 147. Obligation to bear first-instance Court fees
1. The involved parties must bear the first-instance Court fees if their petitions are not accepted by courts, except for cases where they are exempted from, or do not have to pay such fees.
2. In cases where the involved parties cannot themselves determine their portions in the common properties and petition the Courts to settle the division of the common properties, each party must bear the first-instance Court fee corresponding to the value of the property portion she/he enjoys.
3. Prior to the opening of Court sessions, the Courts shall conduct mediations; if the involved parties have reached mutual agreement on the resolution of cases, they must bear 50% of the first-instance Court fee level prescribed in Clauses 1 and 2 of this Article.
4. The plaintiffs in divorce cases must pay first-instance Court fees, without depending on whether the Courts accept their petitions or not. In cases where both parties voluntarily agree on their divorce, each involved party must bear half of the first-instance Court fees.
5. If an involved party to a case is exempted from the first-instance Court fee, then the other involved party shall still have to pay the first-instance Court fee payable under Clauses 1, 2, 3 and 4 of this Article.
6. Where the case is suspended, the obligation to pay first-instance Court fee shall be decided when the resolution of the case resumes in accordance with the provisions in this Article.

Shall the transferor bear the court fee for the amount previously paid by the transferee in case the court declares that the contract of transfer of land use rights is invalid?

Pursuant to Clause 3, Article 27 of Resolution 326/2016/UBTVQH14 on court costs and fees and remission, collection, payment, management and use thereof:

Article 27. Obligations to bear the first-instance court costs in some specific cases
….
3. For disputes over the contract of invalid sale and purchase of properties and transfer of land use rights, the obligations to bear the first-instance civil court costs shall be imposed as follows:
a. In case where one party requests the recognition of the contract for sale of property and transfer of land use right and another party requests the declaration of the invalidity of the above-mentioned contract and nothing else, if the court declares that the contract is invalid, the party requesting such recognition must bear the court cost as for the case without a monetary value; if the court declares to recognize the contract, the party requesting the invalidity declaration must bear the court cost as for the civil case without a monetary value.
b. In case one party requests the recognition of the contract for sale or purchase of property and transfer of land use right and one party requests the declaration of the invalidity of the above-mentioned contract and requests the Court to settle the consequence of the invalid contract, in addition to the bearing the court cost without a monetary value as guided in clause 3a of this Article, the person fulfilling the obligations on the property or damage compensation shall bear the court cost as for the civil case with a monetary value.

Pursuant to the above provisions and according to the response of the Supreme People's Court in subsection 6, Section IV of Official Dispatch 02/TANDTC-PC in 2021, in case Mr. B requests to declare the contract for transfer of land use right null and void, and Mr. A and Mr. B have no other claims; if the Court declares the contract null and void, Mr. A must bear the court fee as in the case non-monetary claim.

In case Mr. B requests to declare the contract for transfer of land use right null and void and requests the Court to address the consequences of the null and void contract, Mr. A must bear the court fee for non-monetary claim and the court fee for monetary claim of VND 500 million to be paid to Mr. B.

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