Is it possible to sell the land in common ownership by section?

May 19, 2017, Mrs. Dang Thi My H and I transferred a 600m2 plot of land at the price of VND 2 billion. I and Mrs. H agreed to contribute VND 1 billion correspondings to land use rights 300m2, we were granted a Certificate of land use rights, which was co-owned by me and Mrs. Dang Thi My Hanh. Now, cause to the need to expand my business and need money, so can I transfer my share to others.

FDVN’s opinion:

Based on your consulting requirements, after studying the legal documents FDVN Law Firm offers the following advice:

First, the provisions of the law about common in ownership.

As you presented, there is an agreement between you and Mrs. H on the capital contribution and common ownership of a plot of land. In fact, you have contributed 1 billion VND to own 300m2 of total 600m2 of co-owner land use rights with Mrs. H. The land use rights certificate also shows that you and Mrs. H are co-owners of this plot of land. Therefore, this is common ownership according to regulations in Article 209 of the 2015 Civil Code:

 ”1. Ownership in common is multiple ownership whereby each owner’s share of the ownership rights with respect to the multiple ownership property is specified.

2. Each of the owners in common has rights and obligations with respect to the multiple ownership property corresponding to its share of the ownership rights unless otherwise agreed.”

2. Right of disposal of ownership in common

The Civil Code 2015 in Article 218 regulation about the disposal of ownership in common:

”1. Each owner in common has the right to dispose of its share of the ownership rights.

3. Where an owner of multiple ownership property sells its share of the ownership rights, the other owners of the property have the right of first refusal to purchase such share.

Such owner may sell such shares to other persons if no other owner purchases within three months in the case of immovable property, or within one month in the case of moveable property, from the date on which the other owners received notice of the sale and the conditions of the sale. The notice must be made writing and conditions for sale applying to other owners in common shall be similar to those applying to non-owners in common.

In the case where there is a sale of a share of the multiple ownership rights in breach of this regulation on priority purchase right, within the time-limit of three months from the date of discovery of the breach, any one of the multiple owners has the right to request a court to transfer to it the rights and obligations of the purchaser; and the party at fault which caused damage shall be liable to compensate for damage.”

Comparing with the regulation above, you have the right of disposal of your ownership. However, you need to follow the order specified by law.

The above is the advice of FDVN regarding your consulting requirements based on the study of legal regulations. I hope the advice of FDVN will be helpful to you.

As per Legal Expert: Dương Hoai Thương