Is it necessary to notify competent authorities regarding distraint of real estate in Vietnam?

Is it necessary to notify competent authorities regarding distraint of real estate in Vietnam?

Pursuant to Clause 1 Article 88 of the Law on Enforcement of Civil Judgments in 2008 stipulating distraint as follows:

1. At least 3 working days before distraining assets being real estate, enforcers shall notify the representative of the commune administration or the street population quarter where the coercive enforcement is to be conducted, involved parties and persons with related interests and obligations of the time and place of distraint and to-be-distrained assets, unless it is necessary to prevent involved parties from dispersing or destroying assets or shirking judgment enforcement.

In case involved parties are absent, they may authorize other persons to exercise their rights and perform their obligations. In case involved parties or their authorized persons are absent after being duly notified, enforcers shall still conduct the distraint, invite witnesses and clearly state such in written records of distraint. In case it is impossible to invite witnesses, enforcers shall still conduct the distraint and clearly state such in written records of distraint.

Upon distraint of objects, houses and architectural works, if judgment debtors or persons currently managing or using these assets are absent and when necessary to unpack or unlock these assets, enforcers shall comply with Article 93 of this Law.

2. Asset distraint must be recorded in writing. A written record of distraint must clearly state the time and date of distraint, full names of the enforcer, involved parties or their authorized persons, record maker, witness(es) and persons related to distrained assets, and distraint proceedings; and describe the state of each asset, requests of involved parties and opinions of witnesses.

Written records of distraint must be signed by involved parties or their authorized persons, witnesses, representatives of commune-level administrations or street population quarters where the coercive enforcement is organized, enforcers and record makers.

As regulations above, making notification to competent authorities is only necessary if it is necessary to prevent involved parties from dispersing or destroying assets or shirking judgment enforcement.

Is it necessary to notify tenants regarding distraint of houses in Vietnam?

Pursuant to Clause 3 Article 95 of the Law on Enforcement of Civil Judgments in 2008 stipulating distraint of houses as follows:

1. The distraint of a house being the sole residence of a judgment debtor and his/her family may be conducted only after this person has been determined to have no other assets or have assets which are insufficient for judgment enforcement, unless the judgment debtor agrees to have his/her house distrained for judgment enforcement.

2. Upon distraint of a house, enforcers shall also distrain land use rights attached to the house. For a house attached to land under land use rights of another person, enforcers may distrain the house and land use rights for judgment enforcement only when the land use rights holder so agree. If the land use rights holder disagrees with the distraint, only the house of the judgment debtor may be distrained, provided the separation of the house from land does not considerably reduce the value of the house.

3. Upon distraint of a house of a judgment debtor which is currently leased or lent to others for dwelling, enforcers shall promptly notify current lessees or dwellers of the distraint.

In case distrained assets being leased houses or stores are auctioned when the lease or permitted dwelling duration remains valid, lessees may continue to lease or dwell in these houses under the Civil Code.

4. The distraint of locked houses must comply with Article 93 of this Law.

As regulations above, it is compulsory to notify the tenants. In case distrained assets being leased houses or stores are auctioned when the lease or permitted dwelling duration remains valid, lessees may continue to lease or dwell in these houses under the Civil Code.

Best regards!