Should you have someone else hold title to your real estate in his/her name? What are the risks we might face if we do so? Those are questions that PL & Partners Law Firm has received a lot in the past time. In order to answer you, we have written this article. Keep reading, please!
A Certificate of land use rights, ownership of houses, and other assets attached to land (collectively referred to as the Certificate) is the legal basis for determining to whom the real estate stated in the paper belongs. This certificate is commonly known as the red book, or pink book.
Although the law does not allow it, it is common for some people to let their land use rights be titled in someone else’s name.
For example, people who live abroad or those who do not have enough documents for purchase shall send money to, and ask their relatives to buy, and hold title to the real estate in the relative’s name.
These people will face a lot of potential legal risks. There are many cases when people lose their actual property. They might get it back, in some cases, but it takes a lot of time and money.
In this article, let’s learn more about whether to have someone else hold title to your real estate in his/her name with PL & Partners Law Firm.
1. DOES THE LAW ALLOW YOU TO HAVE SOMEONE ELSE HOLD TITLE TO YOUR REAL ESTATE IN HIS/HER NAME?
Pursuant to Article 3.16 of the Land Law 2013:
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Land Law 2013 also stipulates that the person whose name is listed on the red book (title) is entitled to the following benefits:
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Thus, from legal perspective, having someone else hold title to your property is against the law. In addition, when you do so, you are giving that person the right to use and own the real estate when in fact they are not the owner, or user of the real estate.
Therefore, you are taking many risks.
2. RISKS WHEN HAVING SOMEONE ELSE HOLD TITLE TO YOUR REAL ESTATE IN HIS/HER NAME.
2.1. Losing your property.
The biggest and most common risk is when that person has the intention to appropriate the property. If he/she refuse to transfer the property and deny that they hold the title at your request, then you are completely at risk of losing the property. If you want to claim it back, you must go through disputes and litigation which are tiring.
2.2. Having no rights to such real estate.
As mentioned above, the person named on the certificate will have full rights to the real estate listed on that certificate, including the right to transfer, exchange, lease, mortgage, and use the property to contribute capital. Even if you are in fact the real owner of the property, you do not have any rights.
2.3. Not being compensated when the real estate is acquired.
In case the state acquires the real estate and its owner is eligible to receive compensation, only the person whose name is on the certificate will be compensated. You will not get any benefits at all.
2.4. A distress when the person whose name is listed on the title has an obligation to a third party.
The fourth risk arises when that person has property obligations to a third party. For example, he/she is indebted to other individuals or organizations, is unable to pay, and according to the decision of the competent state agency, the real estate under his/her name will be distrained to perform his/her obligations. Upon this circumstance, the risk of losing your property is completely possible.
2.5. Risks when the person whose name is listed on the title dies.
The fifth risk shall arise upon the death of that person. The real estate will be considered as an inheritance and distributed to his/her heirs. Whether those heirs know or don’t know, if they refuse to acknowledge the origin of the estate, it is easy to have a dispute. In the event that the person named on the title divorces and the division of common property arises, it is the same risk as the early situation.
Thus, when having someone else hold title to your real estate in his/her name, you might face many risks. If a dispute occurs, the disadvantage will belong to you and it will be difficult to protect your rights and interests before the law. You will have to spend a lot of time, effort and money to prove the case in order to reclaim your real estate.
In other words, when you have someone else hold title to your real estate in his/her name, you will be the one who suffers the most.
Therefore, you should consider carefully before making decisions because real estate is one of the great value assets.
If you need legal assistance, please don’t hesitate to contact us at:
PL AND PARTNERS LAW FIRM
Headquarters: 46th Floor, Bitexco Financial Tower, No. 2 Hai Trieu, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Office: Lot 1.16 Viva Riverside, 1472 Vo Van Kiet, Ward 3, District 6, HCMC
Hotline: 093.1111.060
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We are always ready to assist you.
| The article is based on the current legal regulations at the time of writing, and it may no longer be valid or relevant at the time you read it due to changes in the law. The article, therefore, is seen as reference only. |
