comment on the judgment disputes about civil rights and disputes on housing sales contracts

The Court of First Instance and the Court of Appeal sentenced Group F Joint Stock Company to stop selling the house to be built villa B1 on green land until there is a specific agreement

VIETNAM NATIONAL UNIVERSITY, HO CHI MINH CITY - VNU - HCM

UNIVERSITY OF ECONOMICS AND LAW

FACULTY OF LAW

COMMENT ON THE JUDGMENT DISPUTES ABOUT CIVIL RIGHTS AND DISPUTES ON HOUSING SALES

CONTRACTS

Subject: Legal research methods

Instructor: Ph.D Le Nguyen Gia Thien

Class: 231PP0705

Ho Chi Minh City, January 12, 2024

MEMBERS LIST

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TABLE OF CONTENTS

1 Summary of judgment

2 Legal question

2.1 Does the landscape in front of the location of the house being sold affect the value of the house? If the landscape in front of the house does impact the value, does Mr Th have the right to request legal constraints on the sale of Company F's B1 property?

2.2 The Court of First Instance and the Court of Appeal sentenced Group F Joint Stock Company to stop selling the house to be built (villa B1) on green land until there is a specific agreement on the matter Is it correct to change Appendix 01 of the Housing Purchase Contract No

BT6B-12B/2018/HALONG signed on January 6, 2018?

2.3 Why did the Court not accept Company F's request to declare the contract invalid due to mistake?

2.4 Why is the Court's judgment that the rights Mr Th asked the Court to recognize relate to

a particular administrative decision? Is this true of the nature of the case?

3 Comment

3.1 Since the People's Committee of Hanoi issued Decision 6568/QD-UBND on 10/10/2018, changing the legal nature of land plot B1 (from green land to residential land), does the Company F have any obligation or responsibility regarding the value of Mr Th's house? What is that obligation?

3.2 Shortcomings of the Court of First Instance and the Court of Appeal

3.3 Assessment of the superior court's conclusion on solid ground in the case

4, Conclude

1 Summary of judgment

HIGH PEOPLE'S COURT IN HANOI Cassation decision

No 24/2023/DS-GDT

April 22, 2023 Civil rights disputes and Disputes over housing purchase and sale contracts

The composition of the Committee of Judges of the High People’s Court includes:

- Presiding judge: Mr Chu Thanh Quang - Senior Judge;

Members:

- Mr Vu Minh Tuan - Senior Judge;

- Ms Nguyen Thi Thanh Xuan - Senior Judge

- Trial Secretary: Ms Le Thi Hong Vinh - Assessor of the High People's Court in Hanot

- Representative of the Senior People’s Procuracy in Hanoi participating in the tnal: Ms Tran Thi Minh Ngoc - Senior Procurator

- Plaintiff: Mr Nguyen Van Th, born in 1972

- Defendant: F Group Joint Stock Company Legal representative: Ms Tran Thi Hong Nh, born

in 1986

- Persons with related rights and obligations: People's Committee of City H, Quang Ninh Province

Legal representative: Mr Vu Truong T

Mr Nguyen Duc H, born in 1974; Ms Nguyen Thi Hoa H, born in 1976

CONTENTS OF THE CASE:

According to the plaintiff, Mr Nguyen Van Th presented:

Date 06/01/2018

- Mr Nguyen Van Th and F Group Joint Stock Company signed the Housing Purchase and Sale Contract No BT6B-12B/2018/HALONG- FLC, showing that Mr Th bought villa No B and resort

villa F

- In Article 2 of the Contract, the two parties agree on the characteristics of the housing for sale and purchase, the main characteristics are described in Appendix 01 of the Contract

- In Clause 18.6.1 Article 18 of the Contract, the parties agree that the amendment and supplementation of Appendix 01 of the Contract must be agreed by the parties in the Contract Appendix 01 shows that the south direction of villa B is green land, no architectural or residential

construction

- However, recently, Company F advertised that Villa B1 will be built at the southern location of Villa B This action of Company F will change the original location plan shown on the drawings specified in Article 3 of Annex 01 promulgated together with the signed Contract, violation of the agreement in Point 18.6.1 Article 18 of the Contract negatively affects the current life of Mr Th's family

Therefore, Mr Th initiated a lawsuit asking the Court to recognize the civil rights of the villa owner, asking the Court to force F Group Joint Stock Company to stop the act of selling houses to

be built on green land until there is a specific agreement on changing Annex 01

The defendant F Corporation (represented by the legal representative) presented:

- Company F confirms the signing of Contract No BT6B-12B/2018/HALONG dated 06/01/2018

as presented by Mr Th However, Company F did not agree to Mr Th's request to sue, on the grounds that:

- In Appendix 01, there is no commitment to sell villa B with landscape in front of it In fact, Company F has fulfilled its obligations and has handed over the house to Mr Th in accordance with

the agreement as committed in the Contract, Mr Th has handed over and used villa B in accordance

with the location and the layout drawing of villa B attached to Appendix 01 Therefore, Company F has grounds to assert that it has complied with the provisions of the Contract and Annex 01, so there

is no obligation to agree with Mr Th on the amendment of Annex 01

- Company F wishes to be mediated according to the negotiating plan for the plaintiff to choose

to buy 01 unit in another area at a preferential price or negotiate to buy B1 apartment at the agreed price of the two parties

Pursuant to Article 2 and Annex to BT6B-12B, Company F affirmed that it would only sell Mr

Th unit B without including a landscaping commitment Company F claimed that Mr Th had made

a mistake about the subject matter of the contract, asking the Court to declare the Contract void by mistake under Article 407 of the Civil Code 2015

The person having the relevant obligation interest is the People's Committee of City H, Quang Ninh province (represented by the representative):

- The People's Committee of City H approved in Decision No 2035/QD- People's Committee dated 08/7/2016, Lot 47-BT6B is green land Until the adjustment, lot 47-BT6B is still green land But the second adjustment is residential land (for the construction of houses in the form of villas)

- Based on the direction of the Provincial People's Committee, the direction of the Standing

Committee of the Provincial Committee, the direction of the Provincial People's Committee, the

investment policy approved by the Provincial People's Committee in Decision No 2652/QD- UBND, the provisions of the law on construction planning and planning plans organized by F Group Joint Stock Company, The People's Committee of City H approved in Decision No 6568/QD-UBND dated 10/10/2018 The appraisal and approval of the detailed planning plan of the project is in accordance with the "adjustment of the general planning of City H to 2040 with a vision to 2050"

- Thus, from 2018, Lot 47-BT6B has been adjusted as residential land, so F Group Joint Stock Company has enough legal grounds to implement the construction of works on land plot No 47 To date, Company F has not been issued a Land Use Right Certificate for Lot 47-BT6B and the Department of Construction has not issued a written notice of eligibility to sell houses for Lot 47- BT6B Therefore, according to the provisions of Article 55 of the Law on Real Estate Business in

2014, Company F has not been allowed to sell houses formed in the future in Lot 47-BT6B

At the Civil Judgment of First Instance, the People's Court of Ha Long City, Quang Ninh

Province decided:

- Accepting the plaintiff's request to initiate a lawsuit, Mr Nguyen Van Th

- Recognizing the civil rights of Mr Nguyen Van Th

- Forcing F Group Joint Stock Company to terminate the act of selling houses until there is a specific agreement on changing Appendix 01

In addition, the Court of First Instance shall decide on court fees and the right of appeal as prescribed

After a preliminary hearing, Company F appealed In Civil Appeal Judgment No 40/2022/DS-

PT dated August 24, 2022, the People's Court of Quang Ninh province decided:

The contents of the appeal filed by respondent F Corporation upheld the judgment of first instance Accepting the plaintiffs request to initiate a lawsuit (according to the petition to change and supplement the petition) of the plaintiff, Mr Nguyen Van Th Recognizing the civil rights of

Mr Nguyen Van Th Forcing F Group Joint Stock Company to terminate the act of selling houses until there is a specific agreement on changing Appendix 01

On September 22, 2022, F Corporation filed a petition for review under the cassation procedure for the above appellate civil judgment

In Decision No 66/2022/KN-DS, the Chief Judge of the High People's Court in Hanoi appealed according to the cassation procedure against the Civil Judgment of Appeal No 40/2022/DS-PT of the People's Court of Quang Ninh province; request the Committee of Judges of the High People's Court in Hanoi to try the cassation director to annul the above-mentioned appellate civil judgment and cancel the first instance civil judgment No 42/2021/DS-ST of the People's Court of Ha Long city, Quang Ninh province; assign case dossiers to the People's Court of Ha Long city, Quang Ninh province for retrial in accordance with law

At the trial, representatives of the High People’s Procuracy in Hanoi requested the Committee of Judges of the High People's Court in Hanoi to accept the appeal of the Chief Judge of the High People's Court in Hanoi

JUDGMENT OF THE COURT

[1] On 06/01/2018, Mr Nguyen Van Th and F Group Joint Stock Company signed a Housing Purchase and Sale Contract, which shows that Company F sold Mr Th villa B and resort villa F (abbreviated as the Contract)

[2] In Article 2 of the Contract, the two parties agree on the main characteristics of the housing for sale and purchase described in Appendix 01 of the Contract The parties agree that the amendment of Annex 01 must be agreed According to Article 3 of Appendix 01 the description and floor plan of the housing location issued together with the Contract signed between Mr Th and Company F, the south side of villa B of the purchasers is green land, not land for construction of

structures or houses

[3] Due to the adjustment of the planning by the People's Committee of City H, Quang Ninh province, Company F offers for sale villa B1 to be built at the southern location of villa B Mr Th believes that this action of Company F will change the provisions of Article 3 of Annex 01 promulgated together with the signed contract, breach of the agreement in Point 18.6.1 Article 18 of the Contract should initiate a lawsuit to request the Court to recognize the nght to enjoyment; request the Court to force F Group Joint Stock Company to terminate the act of selling villa B1 until there is an agreement on the change of Appendix 01

[4] The change of the use purpose of the land south of Mr Th's facade from green land to residential land (after the 2nd planning adjustment was determined to be villa B1) is based on the Decision of the People's Committee of City H, Quang Ninh province on approving the adjustment (2nd) of the detailed plan scale of 1/500 The Court of First Instance and the Court of Appeal have not considered whether the planning planning of Company F and the Decision of the People's Committee of City H mentioned above are in accordance with the provisions of the Planning Law

2009 and relevant legal documents but have recognized Mr Th’'s civil rights enjoyed, using the amenities of the land south of Mr Th's fagade for the Villa is not sufficiently solid

[5] On the other hand, the nghts Mr Th asked the Court to recognize involved a particular administrative decision The Court of First Instance and the Court of Appeal have not clarified Mr Th's request for the Decision of the People's Committee of City H to instruct Mr Th to initiate an administrative case or consider an individual decision in a civil case The Court of First Instance and the Court of Appeal have not considered and assessed whether the adjustment of the planning (2nd) of the People's Committee of City H according to the Decision is correct but has forced F Group Joint Stock Company to terminate the act of selling houses that will be built on green land until there is a specific agreement on changing Annex 01 of the Contract Sale and purchase of house No BT6B-12B/2018/HALONG signed on 06/01/2018 is insufficient

[6] In case the decision of the People's Committee of City H is in accordance with the law, the performance of the housing purchase and sale contract must be implemented by relevant parties in accordance with Article 420 of the 2015 Civil Code; when settling disputes, the Court must rely on this provision to determine the scope of civil rights of the subjects in the contract dispute The fact that the Court of First Instance and the Court of Appeal ordered F Group Joint Stock Company to terminate the act of selling houses to be built until there is a specific agreement on changing Annex

01 of the House Purchase Agreement is not firmly founded Therefore, it is necessary to cancel the first instance civil judgment and the appellate civil judgment to resettle the case In case it is necessary to consider a separate decision in a civil case, the Court must determine the competence

to settle the case according to the provisions of Article 34 of the Code of Civil Procedure

DECIDE:

Pursuant to Point a, Clause 1, Article 337; Clause 3, Article 343 and Article 345 of the Civil

Procedure Code 2015 1 To accept the appeal of the Chief Judge of the High People's Court in

Hanoi

2 To cancel the appellate civil judgment of the People's Court of Quang Ninh province and cancel the first instance civil judgment of the People's Court of Ha Long city, Quang Ninh province

on the case "Dispute over civil rights and dispute over housing purchase contract" between the plaintiff Mr Nguyen Van Th and the defendant F Group Joint Stock Company; persons having relevant interests and obligations are the People's Committee of City H, Quang Ninh province, Mr Nguyen Duc H, Ms Nguyen Thị Hoa H

3 Assign case files to the People's Court of Ha Long city, Quang Ninh province for resettlement according to the first instance procedures in accordance with the provisions of law

2 Legal question

2.1 Does the landscape in front of the location of the house being sold affect the value of the house? If the landscape in front of the house does impact the value, does Mr Th have the right to request legal constraints on the sale of Company F's B1 property?

The presence of greenery significantly impacts the determination of the value of Mr Th's purchased property Specifically, Article 15 of Decree No 61-CP regulates the value of houses for sale This includes the sale price, rental price, service fees in buying and selling activities, and

rental fees The value of the natural landscape influences the selling price of the house, encompassing both the sale price and the agreed-upon price among the parties listed in the contract

In the physical aspect, the green landscape around the house is a crucial factor determining the quality of life for the property owner in their daily life Besides aesthetic purposes, such as shaping and landscaping according to planning or construction projects by construction companies, the natural landscape also serves functions like air purification and dust reduction Therefore, it is evident that properties in areas surrounded by planted trees and greenery hold higher value when becoming subjects of transactions

Concerning the legal aspect, while the law doesn't explicitly specify factors influencing the value

of real estate in transactions, it broadly includes various elements without restricting entities Specifically, Article 15 of Decree No 61-CP outlines the value of houses for sale, covering the sale price, rental price, service fees in buying and selling activities, and rental fees All these amounts are mutually agreed upon by the parties involved during the preparation or execution of the transaction It is clear that the value of the natural landscape is part of both the sale price and the agreed-upon price among the parties in the contract

Regarding Mr Th’'s rights to request legal constraints on the termination of the sale of the house

to construct (Villa B1) on green land until a specific agreement is reached on amending Appendix

01 of the Sales Contract for residential housing No BT6B-12B/2018/HALONG signed on 06/01/2018 by Company F, this is a matter where Mr Th has not exercised his rights correctly According to Article 420, Clause 2 of the 2015 Civil Code, the party whose interests are affected (Mr Th) has the right to request the other party (Company F) to renegotiate the contract within a reasonable period Mr Th can request the court to terminate the contract at a specified time or amend the contract to ensure his rights However, he must demonstrate that the request arises from

a fundamental change in the characteristics or conditions of the object being transacted in the contract There is insufficient evidence of negotiation and agreement between the parties to ensure the interests that Mr Th should have achieved when establishing a contract that did not yield favorable results Therefore, Mr Th's submission of legal constraints or any other requests to the

court is considered unreasonable

2.2 The Court of First Instance and the Court of Appeal sentenced Group F Joint Stock Company to stop selling the house to be built (villa B1) on green land until there is a specific