Things to note in common property purchase and sale transactions

Recently, we have received many questions from spouses interested in buying and selling their common property.

To better understand, PL & Partners Law Firm would like to share with you things to keep in mind in purchase and sale transaction of common property.

1. WHAT IS COMMON PROPERTY OF HUSBAND AND WIFE?

Article 33 of the Law on Marriage and Family 2014 stipulates as follows:

Common property of husband and wife includes:

Assets created by a spouse;
Income generated from labor, production and business activities;
Yields and profits arising from separate property;
Other legal income during the marriage period;
Property that husband and wife jointly inherit or are given as gifts;
Other property that husband and wife agree to be common property.

In case there are no grounds to prove that the property in dispute between husband and wife is the separate property of each party, such property shall be considered as common property.

*Types of assets that are considered as common property of husband and wife.*

2. CIVIL TRANSACTIONS MUST HAVE THE CONSENT OF BOTH HUSBAND AND WIFE.

Civil transactions that require written consent from both spouses include:

Transactions related to land or housing that is common property or the sole residence of husband and wife;
Transactions on the possession, use, and disposition of common property with respect to: Other real estate; Movable property whose ownership must be registered by law; Asset being the family’s main source of income;
Transactions related to the spouse’s personal property from which the profits and income are the family’s only source of livelihood.

In case a spouse decides to dispose of property, violating the provisions of written agreement, the other party has the right to request the Court to declare the transaction invalid, and resolve its legal consequence as a invalid transaction.

3. THINGS TO NOTE IN COMMON PROPERTY PURCHASE AND SALE TRANSACTIONS.

Asset sale is one of the high-risk transactions. It is necessary to determine the legality of the property.

The following issues should be kept in mind:

For buyers:

Need to clearly understand whether the property is separate or common property of husband and wife;
For separate property of husband and wife, it is necessary to determine whether it is the only residence of the couple or not;
Check other property agreements (if any);
Consider whether this property is being pledged, mortgaged or secured.

For sellers:

For transactions that require the consent of both husband and wife (or signatures of both), prior agreement and consent are required;
In cases signatures of both are required but one party is not present when performing the transaction, a written authorization or agreement from both is required;
Only make personal decisions about your own assets to avoid legal trouble.

Hope that you and your friends find our sharing helpful in the process of carrying out related civil transactions.