The verbal land transfer contract is still not declared invalid in Vietnam?

Judgment 24/2019/DS-PT dated May 29, 2019 on a land use right transfer contract dispute, according to which: 

"Around February 2002, Mr. Nguyen Van C and Ms. Nguyen Thi D received the transfer of land parcel No. 384 from Mrs. Vo Thi Kim C, an area of ​​460m2, which was granted a certificate of land use right (LURC) dated 16. April 2001 in the name of Mrs. Vo Thi Kim C; The transfer price is 01 ton of green coffee, equivalent to 11,000,000 VND from 2002 to 2005. In 2002, Mr. Nguyen Van C paid Ms. Vo Thi Kim C 150kg of green coffee, 500kg of green coffee in 2003 and 350kg of green coffee in 2004. In 2005, Mr. Nguyen Van C and Ms. Nguyen Thi D built a grade 4 house with an area of ​​95m2 on the transferred land Mr. Nguyen Van C paid in full as agreed by Ms. Vo Thi Kim C and Ms. Vo Thi Kim C handed over the LURC, however, Mr. Nguyen Van C repeatedly asked Ms. Vo Thi Kim C to complete the transfer procedure but to no avail. Therefore, Mr. Nguyen Van C and Ms. Nguyen Thi D filed a lawsuit. request Ms. Vo Thi Kim C to complete the procedures for the transfer of land use rights for the above land plot."

The trial panel stated:

Although, the contract for the transfer of land use rights between the parties violates the form as prescribed by law. However, during the land use process, Mr. Nguyen Van C and Ms. Nguyen Thi D built a level 4 house on the transferred area, the remaining area could not be used for the purpose. Therefore, the Trial Panel of the People's Court of Dak Mil District accepted the petition of Mr. Nguyen Van C and Ms. Nguyen Thi D, forcing Ms. Vo Thi Kim C to complete the procedures for transferring land use rights; at the same time, Mr. Nguyen Van C and Ms. Nguyen Thi D are obliged to pay Ms. Vo Thi Kim C the missing amount of 2,500kg of green coffee, which is grounded and ensures the interests of the parties.

Since then, the Trial Panel has decided: Apply the 1995 Civil Code;  The 2003 Land Law: Accept the petition of Mr. Nguyen Van C and Ms. Nguyen Thi D: Forcing Ms. Vo Thi Kim C to carry out the procedures for transferring the land plot No. 384 to Mr. Nguyen Van C and Ms. Nguyen Thi D.

Therefore, although according to the provisions of the Civil Code 1995, specifically Article 707, there are specific regulations on the form of a contract that must be in writing.

"Article 707. Form of land use right transfer contract

The land use right transfer contract must be made in writing. The transfer of land use rights must be permitted by a competent state agency and must be carried out procedures and registered at the competent People's Committee in accordance with the land law.

The trial panel is still based on the actual situation of the transaction in that Mr. Nguyen Van C and Ms. Nguyen Thi D built a level 4 house in the transferred area, thereby not declaring the above transfer contract invalid. forcing Ms. C to complete the transfer procedures for Mr. C and Ms. D. 

It can be seen that although the law may be rigid, those who apply the law in the trial will depend on the actual situation of the case to apply the law flexibly to ensure the interests of the parties. beside. Through this judgment, it can also partly answer the question of many of you that when going to court, why is it so important to argue and argue, but it is absolutely not necessary to just put out the governing legal regulations.

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