Can I reclaim my pledged land use right certificate in Vietnam? What is handling for land use right certificate pledge dispute in Vietnam?

Can I reclaim my pledged land use right certificate in Vietnam?

Hello. My family previously lent the land use right certificate to an acquaintance and that person pledged it and now I want to get that land use right certificate back, what is the most convenient way to do it? Thank! Hope you can advise.

Reply:

According to Clause 1, Article 105 of the 2015 Civil Code, property comprises objects, money, valuable papers and property rights.

Thus, a land use right certificate is a property (object).

Pursuant to Article 305 of the 2015 Civil Code, it is stipulated: Pledge of property means the delivery by one party (hereinafter referred to as the pledgor) of property under its ownership to another party (hereinafter referred to as the pledgee) as security for the performance of an obligation.

According to the information you provided, your family lent the land use right certificate to that acquaintance, so the family gave right to use that land use right certificate to that acquaintance, so that acquaintance has right to pledge the land use right certificate.

On the other hand, Article 315 of the 2015 Civil Code stipulates termination of pledges on property, as follows:

A pledge of property shall terminate in any of the following cases:

1. The obligation secured by the pledge has terminated;

2. The pledge has been cancelled or substituted with another security;

3. The pledged property has been realized;

4. As agreed by the parties.

Therefore, you can only get your pledged certificates back when the pledge contract is terminated in Vietnam.

Can I reclaim my pledged land use right certificate in Vietnam? What is handling for land use right certificate pledge dispute in Vietnam? (Image from the Internet)

What is handling for land use right certificate pledge dispute in Vietnam?

I know that the land use right certificate is not an asset so it cannot be pledged. So if you accidentally pledge the land use right certificate, how will it be resolved?

Reply:

In Article 117 of the 2015 Civil Code, it is stipulated:

1. A civil transaction shall be effective when it satisfies all of the following conditions:

a) Participants in the transaction have legal personality and/or legal capacity in conformity with such transaction;

b) Participants in the transaction act entirely voluntarily;

c) The purpose and contents of the transaction are not contrary to the law and/or social ethics.

2. The forms of civil transactions shall be the conditions for its effectiveness in cases where it is so provided for by law.

Because the land use right certificate is not considered an asset, the agreement to pledge the land use right certificate is considered a void civil transaction in Vietnam.

And in Article 131 of the 2015 Civil Code, there are provisions on legal consequences of invalid civil transactions as follows:

1. An invalid civil transaction shall not give rise to, change or terminate any civil rights and obligations of the parties as from the time the transaction is entered into.

2. When a civil transaction is invalid, the parties shall restore everything to its original state and shall return to each other what they have received.

If the restitution is not able to make in kind, it may paid in money.

3. A bona fide person in receiving yield and/or income is not required to return such yield and/or income.

4. The party at fault which caused damage must compensate therefore.

5. The settlement of consequences of invalid civil transactions regarding personal rights shall be prescribed in this Code and relevant laws.

In my personal opinion, if the parties have an agreement to pledge the land use right certificate, that agreement has no effect and does not change the rights and obligations of the parties. The parties reimburse each other for what they have received. Specifically, the pledgee returns the land use right certificate to the pledgor, and the pledgor returns the pledgee's assets and money.

Can my friend pledge a rented property in Vietnam?

I rented a car to a friend, then this person pledged my car. Is this correct and how should I handle it?

Reply:

Article 309 of the 2015 Civil Code regulates pledge of property as follows:

Pledge of property means the delivery by one party (hereinafter referred to as the pledgor) of property under its ownership to another party (hereinafter referred to as the pledgee) as security for the performance of an obligation.

According to this Article, only you, the car owner, have right to pledge your property (car). Therefore, your friend (the person renting the car) pawning the car without your consent is a violation of the law in Vietnam.

Best regards!