Case law No. 11/2017/AL regarding recognition of the land use rights mortgage agreement with property on such land lot not being under the mortgagor’s ownership
October 15, 2020 Case Law
This case law was approved by the Judicial Council of the Supreme People’s Court on December 14, 2017 and promulgated under Decision No. 299/QD-CA issued by the Chief Justice of the Supreme People’s Court dated December 28, 2017.
Source of this case law: Cassasion Decision No. 01/2017/KDTM-GDT of the Judicial Council of the Supreme People’s Court dated March 01, 2017 regarding the business, commercial case of “Dispute over the credit facility agreement” in Hanoi between A Joint Stock Commercial Bank (having (i) Mr. Pham Huu P as the legal representative and Ms. Mai Thu H as the authorized representative) as the plaintiff and B Company Limited (having Mr. Tran Luu H1 as the legal representative) as the defendant; people with related rights and obligations are Mr. Tran Duyen H, Ms. Luu Thi Minh N, Mr. Tran Luu H1, Ms. Pham Thi V, Mr. Tran Luu H2, Ms. Ta Thu H, Mr. Nguyen Tuan T, Ms. Tran Thanh H, Mr. Tran Minh H and Ms. Do Thi H.
In the case of “Recognition of the land use rights mortgage agreement with property on such land lot not being under the mortgagor’s ownership”, a party has mortgaged his/her land use rights and property on said land lot to secure the performance of his/her civil obligations, but there is other property on said land lot owned by another party; said mortgage agreement’s formality complies with the law. In said case, the Court shall determine that said mortgage agreement is valid. On the other hand, in case the mortgagor and the mortgagee have reached a mutual agreement that the mortgagee may sell said secured property, i.e., land use rights over said land lot with a house not owned by the land user (the mortgagor); in the court dispute resolution, the house-land owner reserves priority for the receipt of the transfer of said land use rights if the owner has a demand.