CASE LAW NO. 31/2020/AL On the determination of the right to rent or purchase a State-owned house according to Decree No. 61/CP dated July 5th, 1994, of the Government as a property right (Please note that this image is not related to the specific case being discussed).

CASE LAW NO. 31/2020/AL

On the determination of the right to rent or purchase a State-owned house according to Decree No. 61/CP dated July 5^th, 1994, of the Government as a property right

Approved by the Judicial Council of the Supreme People’s Court on February 5^th, 2020, and published under Decision No. 50/QĐ-CA on February 25^th, 2020, by the Chief Justice of the Supreme People’s Court..

Source of the Case Law:

The Cassation Decision No. 05/2018/DS-GĐT dated April 10^th, 2018, of the Judicial Council of the Supreme People’s Court regarding the civil case of “Dispute over the division of shared property in the purchase of a State-owned house” in Hồ Chí Minh City between the plaintiff, Mrs. Nguyễn Thị H, and the defendant, Mrs. Nguyễn Thị Kim L; and interested parties including 12 people.

Location of the Case Law’s Content:

Paragraph 1 of the “Court’s Opinion” section.

Summary of the Case Law:

– Case Background:

An individual entitled to purchase a house owned by the State according to Decree No. 61/CP dated July 5^th, 1994, of the Government on the sale and business of houses, had not completed the procedure to purchase the house under the law during their lifetime.

– Legal Resolution:

In this case, it must be determined that the right to rent or purchase a house owned by the State is a property right and should be transferred to the heirs of the deceased individual.

Relevant Legal Provisions:

– Articles 172, 188, 634 of the 1995 Civil Code (corresponding to Articles 163, 181, 631 of the 2005 Civil Code; Articles 105, 115, 609 of the 2015 Civil Code);

– Decree No. 61/CP dated July 5^th, 1994, of the Government on the sale and business of houses.

Keywords:

“State-owned house”; “Purchasing state-owned house”; “Property”; “Property right”.

CASE DETAILS

In the Petition dated July 5^th, 2007, the other amended Petitions dated August 29^th, 2008, January 15^th, 2010, July 20^th, 2010, August 10^th, 2010, and her statements in court, the plaintiff, Mrs. Nguyễn Thị H, presented:

Her parents, Mr. Nguyễn Thanh T (deceased in 1995) and Mrs. Lâm Thị C (deceased on January 25^th, 2011), had three children together: herself (H), Mr. Nguyễn Văn T1, and Mr. Nguyễn Văn T2 (deceased in 1992, survived by his wife Mrs. Hồ Thị H4 and their four children: Nguyễn Hồ Thanh C1, Nguyễn Hồ Hoàng Đ, Nguyễn Thị An T2, and Nguyễn Thị Mỹ D). Mr. T was a revolutionary from before August 1945 in Bạc Liêu. On July 20^th, 1954, he expatriated to the North. In 1964, Mrs. C remarried.

In October 1975, Mr. T worked at Directorate A, Military Zone 7, in Hồ Chí Minh City. In 1976, Mr. T lived with Mrs. Lê Thị T4 (without registering the marriage). Around early 1976, Mr. T was allocated the house at No. 63 (2nd floor), V Street, X Ward, now No. 63 B Street, H Ward, District 1, Hồ Chí Minh City by the military. Decision No. 092/QĐ dated April 16^th, 1981, by the Housing Council of Military Zone 7 officially allocated the above house to Mr. T.

On August 27^th, 1995, Mr. T passed away without leaving a will. Mrs. Nguyễn Thị Kim L, the step-daughter of Mrs. T4, signed a rental contract and applied to purchase the house according to Decree No. 61/CP dated July 5^th, 1994, of the Government on the sale and business of houses (hereinafter referred to as Decree No. 61/CP).

Upon learning of Mrs. L’s actions, Mrs. H filed a complaint. On July 5^th, 2001, the Defense Inspectorate of the Command of Military Zone 7 resolved that if Mrs. H’s family had no further complaints, the house at No. 63 B Street would be sold to Mrs. L at preferential rates; after the purchase, the remaining value of the house, after deducting purchase costs, would be divided among the family members; if no agreement could be reached, the matter would be resolved legally.

However, after completing the purchase, Mrs. L took possession of the house and rented it to NV Limited Liability Company without consulting or negotiating with Mrs. H and Mr. T1 regarding the division of the house’s value. Mrs. H asserted that house No. 63 B Street was sold by the State at preferential rates to Mr. T, and therefore, his children should benefit. She requested the Court to compel Mrs. L to share ½ of the house’s value, after deducting the purchase price and related costs, with Mr. T’s heirs.

In the amended Petition dated August 29^th, 2008, Mrs. H requested the Court to divide house No. 63 B Street according to the law among Mr. T’s heirs, including Mrs. T4, herself, Mr. T1, Mr. T2, and Mrs. L (if it could be proven that she was legally adopted), and requested Mrs. L to return the rental income from 1998 to the present, approximately VND 2,000,000,000.

On July 20^th, 2010, she requested the Court to declare the contract between Directorate A, Military Zone 7, and Mrs. L for the sale of house No. 63 B Street as illegal and to annul the contract; to recognize Mr. T’s heirs as entitled to purchase the house. On August 10^th, 2010, Mrs. H withdrew this request.

On November 17^th, 2014, Mrs. H requested the Court to divide the shared property, being house No. 63 B Street, according to the agreement of the Defense Inspectorate of the Ministry of National Defense, and did not demand the rental income that Mrs. L received from renting the house to NV Limited Liability Company from 2002 to the present.

The defendant, Mrs. Nguyễn Thị Kim L, presented:

Her parents were Mrs. Lê Thị T4 and Mr. Nguyễn Văn C2 (Head of the Central Organizing Committee for the Southern Region – martyred in 1973). In 1975, her family was allocated part of the house at 201/6 Y, now 4/1 (sometimes recorded as 204/1), HV Street, Đ Ward, G District, Hồ Chí Minh City, by the Central Organizing Committee. After Mr. C2’s death, Mrs. T4 married Mr. T.

In 1981, due to Mrs. T4’s illness, she temporarily resided at 63 B Street to take care of her sick mother. In 1982, Mrs. T4 passed away. At that time, Mr. T was ill and frequently hospitalized without family care (his children had relocated), so she stayed at 63 B Street to take care of him.

In 1986, following Mr. T’s request, her family completed the procedures to return the house at 4/1 HV Street and moved their household registration to 63 B Street. In 1993, Mr. T authorized her to fully manage all matters related to the rights, obligations, and responsibilities for the house at 63 B Street, specifying that the authorization was valid both during his lifetime and posthumously. Mr. T died in 1995. In 2001, when she applied to purchase the house, Mrs. H and Mr. T1 filed complaints.

The Command of Military Zone 7 rejected Mrs. H’s complaint, allowing her to purchase the house. After the purchase, the remaining amount after deducting the purchase price was to be divided among the siblings; if no agreement was reached, the matter would be resolved legally. Out of personal sentiment and familial ties, she intended to support Mr. T’s biological children if Mrs. H withdrew her complaint and she was given a price reduction based on Mr. T’s entitlements.

Thus, she agreed with the Command’s resolution, but Mrs. H and Mr. T1 continued their complaints, resulting in her purchasing the house at a discounted price of VND 606,311,587 under the policy for martyrs’ children. By paying in one lump sum, she received a 10% discount on the house and a 20% discount on the land, totaling VND 506,450,828.

Hence, the house at 63 B Street is her personal property, not based on Mr. T’s entitlement but her status as a martyr’s child. On October 9^th, 2002, she and her husband, Mr. Nguyễn Phi H3 (deceased on July 4^th, 2006), were issued the certificate of house ownership and land use rights for the property. She did not recognize Mrs. H’s claim.

After purchasing the house, Mr. Nguyễn Thanh H1 (her brother) spent VND 400,000,000 (equivalent to 80 taels of gold) on renovations. Should Mrs. H’s claim be accepted, the renovation costs of 80 taels of gold must be deducted.

Interested Parties’ Statements:

– Mr. Nguyễn Văn T1 agreed with Mrs. H’s presentation and claims.

– Mrs. Hồ Thị H4 and the siblings Nguyễn Hồ Thanh C1, Nguyễn Hồ Hoàng Đ, Nguyễn Thị An T3, and Nguyễn Thị Mỹ D authorized Mrs. H to participate in the lawsuit on their behalf.

– Mr. Nguyễn Thanh H1 stated that he has been registered at 63 B Street since 1989. Around 2004, he and Mrs. L repaired and expanded the house, costing approximately VND 400,000,000. He asserted that the house is not part of Mr. T’s estate. If the Court accepts Mrs. H’s claim, he requested reimbursement for the renovation costs based on the 2004 gold price. If the Court does not accept Mrs. H’s claim, he has no further requests.

– Mr. Nguyễn Hoàng Minh M1 and Mrs. Hoàng Nguyễn Ngọc T7 (children of Mr. Nguyễn Phi H3) had no objections or claims and requested the Court to proceed in their absence as per legal provisions.

The valuation report dated September 8^th, 2010, by the People’s Court of District 3, Hồ Chí Minh City, determined the value of the house and land at 63 B Street to be VND 33,993,333,920. The cost estimate report from October 2010 by the Public Service Company of District 3, Hồ Chí Minh City, assessed the value of Mr. H1’s construction at VND 264,114,568.

In First-instance Civil Judgment No. 17/2009/DSST dated April 28^th, 2009, the People’s Court of District 3, Hồ Chí Minh City, ruled (summarized):

The Court did not accept the claims of Mrs. Nguyễn Thị H, Mr. Nguyễn Văn T1, and Mrs. Nguyễn Thị C, represented by Mrs. Nguyễn Thị H, Mrs. Hồ Thị H4, and the siblings Nguyễn Hồ Thanh C1, Nguyễn Hồ Hoàng Đ, Nguyễn Thị An T3, and Nguyễn Thị Mỹ D, regarding the division of Mr. T’s estate, specifically the house at 63 B Street, H Ward, District 1, Hồ Chí Minh City.

After the first-instance trial, Mrs. H and Mr. T1 filed an appeal.

In Appellate Civil Judgment No. 1446/2009/DSPT dated August 14^th, 2009, the People’s Court of Hồ Chí Minh City vacated the First-instance Civil Judgment No. 17/2009/DSST dated April 28^th, 2009, of the People’s Court of District 3, Hồ Chí Minh City, and remanded the case for retrial, citing the lower court’s failure to summon Mr. Nguyễn Thanh H1’s wife and children, and the heirs of Mr. Nguyễn Phi H3 (deceased in 2006). The lower court must clarify the dispute relations in this case.

Due to some litigants residing abroad (Mr. Nguyễn Hoàng Minh M1 and Mrs. Hoàng Nguyễn Ngọc T7), the People’s Court of District 3 transferred the case file to the People’s Court of Hồ Chí Minh City for resolution as per jurisdiction.

In the First-instance Civil Judgment No. 186/2014/DS-ST dated March 6^th, 2014, the People’s Court of Hồ Chí Minh City decided:

Accept part of Mrs. Nguyễn Thị H’s claim.

Mrs. Nguyễn Thị Kim L was ordered to pay Mrs. Nguyễn Thị H, Mr. Nguyễn Văn T1, and the heirs of Mr. Nguyễn Văn T2 the difference in the value from the house purchase as follows:

– Mrs. Nguyễn Thị H: VND 3,882,238,480, at a ratio of 1/8.

– Mr. Nguyễn Văn T1: VND 3,882,238,480, at a ratio of 1/8.

– The heirs of Mr. Nguyễn Văn T2, including Nguyễn Hồ Thanh C1, Nguyễn Hồ Hoàng Đ, Nguyễn Thị An T3, and Nguyễn Thị Mỹ D: VND 3,882,238,480, at a ratio of 1/8. Each person is entitled to VND 970,559,620, this amount temporarily managed by Mrs. H, who is responsible for distributing it to Mr. T2’s heirs.

Mrs. Nguyễn Thị Kim L was awarded a total of VND 20,878,905,440, at a ratio of 5/8 (VND 3,882,238,480 + VND 16,996,666,960).

The Court did not accept Mrs. L’s claim regarding her sole ownership of the house.

The first-instance court also ruled on court fees, liabilities due to delayed execution, and the right to appeal.

Following the first-instance trial, Mrs. Nguyễn Thị H and Mrs. Nguyễn Thị Kim L filed appeals.

In the Appellate Civil Judgment No. 125/2015/DS-PT dated August 21^st, 2015, the High People’s Court of Hồ Chí Minh City decided:

– Denying Mrs. Nguyễn Thị H’s appeal;

– Accepting Mrs. Nguyễn Thị Kim L’s appeal;

– Amending the above-mentioned first-instance Civil Judgment as follows:

The house at 63 (2nd floor) B Street, H Ward, District 1, Hồ Chí Minh City, was recognized as the property of Mrs. Nguyễn Thị Kim L and Mr. Nguyễn Phi H3 (deceased on July 4^th, 2006), according to the Certificate of House Ownership and Land Use Rights No. 19980/2002 dated October 9^th, 2002, issued by the People’s Committee of Hồ Chí Minh City.

The Court denied the claims of Mrs. Nguyễn Thị H, Mr. Nguyễn Văn T1, and the claimants Nguyễn Hồ Thanh C1, Nguyễn Hồ Hoàng Đ, Nguyễn Thị An T3, and Nguyễn Thị Mỹ D to share the value of the house at 63 (2nd floor) B Street, H Ward, District 1, Hồ Chí Minh City, as follows:

– Denying Mrs. Nguyễn Thị H’s claim for Mrs. Nguyễn Thị Kim L to share VND 8,320,548,575.

– Denying Mr. Nguyễn Văn T1’s claim for Mrs. Nguyễn Thị Kim L to share VND 8,320,548,575.

– Denying the claimants Nguyễn Hồ Thanh C1, Nguyễn Hồ Hoàng Đ, Nguyễn Thị An T3, and Nguyễn Thị Mỹ D’s claim for Mrs. Nguyễn Thị Kim L to share VND 8,320,548,575.

On October 18, 2015, Mrs. Nguyễn Thị H filed a request to review the above-mentioned Appellate Civil Judgment under cassation procedures.

In the Cassation Decision No. 01/QĐKNGĐT-VKS-DS dated August 22^nd, 2017, the Chief Prosecutor of the Supreme People’s Procuracy protested the above-mentioned Appellate Civil Judgment and requested the Judicial Council of the Supreme People’s Court to conduct a cassation review in the direction of vacating the Appellate Civil Judgment No. 125/2015/DS-PT dated August 21^st, 2015, of the High People’s Court of Hồ Chí Minh City and the first-instance Civil Judgment No. 186/2014/DS-ST dated March 6^th, 2014, of the People’s Court of Hồ Chí Minh City, remanding the case to the People’s Court of Hồ Chí Minh City for a first-instance retrial in accordance with the law with the following reasoning:

Mr. Nguyễn Thanh T cohabited with Mrs. Nguyễn Thị C, having three children: Nguyễn Thị H, Nguyễn Văn T1, and Nguyễn Văn T2 (deceased in 1992, survived by his wife Hồ Thị H4 and four children). In 1975, Mr. T returned to the South to live with Mrs. Lê Thị T4 without any common children. Mrs. T4 had two children from a previous relationship: Mrs. Nguyễn Thị Kim L and Mr. Nguyễn Thanh H1.

The disputed property is the house at 63 (2nd floor) V Street, X Ward, District 1 (now B Street, H Ward, District 1, Hồ Chí Minh City). The house was managed by Military Zone 7 since the liberation of the South. In 1981, Military Zone 7 issued “Ownership and Usage Rights Certificate” No. 092/QĐ dated April 16^th, 1981, to Mr. Nguyễn Thanh T.

The certificate indicated that the house was allocated to Mr. T to ensure stable long-term accommodation for his family, given their lack of housing. At the time of allocation, Mrs. H and Mr. T1 (Mr. T’s children) lived with him and had permanent residence at the house. In 1982, Mrs. L and Mr. H1 moved in and were registered in the household under Mr. T’s sponsorship.

On June 9^th, 1993, Mr. T made an “Authorization Letter” stating: “…I authorize my child, Nguyễn Thị Kim L, to act on my behalf while I am alive and to fully resolve matters related to the house allocated by Military Zone 7 and the City Land Department (including the upstairs and ground floor areas divided between two families previously) in the event of my passing.”

The letter was witnessed by the local community representatives, including the head of Group 7 – Veterans Association of H Ward, District 1, the H Ward Police Department, and was certified by the People’s Committee of H Ward. Therefore, this letter authorized Mrs. L to handle matters related to the house on behalf of Mr. T during his lifetime and after his passing, not to grant her full ownership of the house as concluded by the appellate court.

On August 27^th, 1995, Mr. T passed away without leaving a will. In 1998, Mrs. L submitted an application to the Housing Council of Military Zone 7 to purchase the house under Decree 61/CP. However, Mrs. H and Mr. T1 objected to Mrs. L’s purchase of the house under Mr. T’s entitlement.

In the Complaint Resolution minutes dated July 5^th, 2001, the Inspectorate of the Ministry of Defense documented the agreement between the parties: “…agreeing to let Mrs. L be named as the purchaser of the house at 63 B Street. The division of the value, after deducting obligations to the State, will be discussed among the siblings. If no agreement is reached, the matter will be resolved according to the law”. In the Complaint Resolution minutes of the People’s Committee of H Ward dated August 17^th, 2001, Mrs. L also confirmed “agree to the commitments made in the resolution of Military Zone 7 dated July 5^th, 2001…”

On October 2^nd, 2001, the Directorate A of Military Zone 7 signed a lease agreement for Mrs. L to rent the house. Subsequently, the Housing Council of Military Zone 7 processed the sale of the house to Mrs. L under Decree 61/CP. On October 9^th, 2002, Mrs. L and her husband (Mr. Nguyễn Phi H3, who passed away in 2006) were issued a certificate of house ownership and land use rights.

Although Mr. T had not completed the house purchase procedures before his death, he was still entitled to the house under the standards for military officers and as a person with contributions to the revolution. The decision by Military Zone 7 to allocate the house to Mr. T had not been revoked. Additionally, regulations stated that houses with disputes or complaints would not be processed for sale until an agreement was reached between the parties. Therefore, Military Zone 7 only resolved for Mrs. L to be named as the purchaser after such agreement.

Furthermore, according to Dispatch No. 8709/SXD-BKTBN dated December 8^th, 2008, from the Hồ Chí Minh City Department of Construction, the house was sold to Mrs. L based on Decision No. 092/QĐ dated April 14^th, 1981, by Military Zone 7 to allocate the house to Mr. T, the confirmation letter No. 672/XN-QLĐT dated December 5^th, 1998, from the District G Urban Management Department confirming Mrs. L’s return of the house to the State, and the Complaint Resolution minutes of July 5^th, 2001, by the Inspectorate of Military Zone 7.

Thus, it can be established that this was a shared property as agreed upon in the minutes dated July 5^th, 2001, and August 7^th, 2001, between Mrs. Nguyễn Thị Kim L and the siblings Mrs. Nguyễn Thị H and Mr. Nguyễn Văn T1. Therefore, the first-instance court’s recognition of the dispute over the division of shared property from the house purchase to accept Mrs. H’s lawsuit is grounded. However, when determining the division ratio, the cost of purchasing the house should have been deducted before the division. The first-instance court erred by allocating half of the house’s value to Mrs. L before deducting the purchase cost from the remaining half, then dividing it equally among the parties, including Mrs. L.

The appellate court failed to consider these points and incorrectly concluded that Mr. T had granted Mrs. L the entire house with the “Authorization Letter” dated June 9^th, 1993. The appellate court also incorrectly determined that Mrs. L’s obligation to return the house to the State was an exchange for her right to the house, thus recognizing it as the property of Mrs. Nguyễn Thị Kim L and her husband, Mr. Nguyễn Phi H3 (deceased in 2006). This determination did not ensure the rights of Mr. T’s children.

At the cassation hearing, the representative of the Supreme People’s Procuracy recommended the Judicial Council of the Supreme People’s Court accept the cassation decision of the Chief Prosecutor of the Supreme People’s Procuracy.

COURT’S OPINION:

[1] The property located at 63 (2nd floor) V Street, X Ward, District 1 (now B Street, H Ward, District 1, Hồ Chí Minh City) was originally under the management and utilization of Military Zone 7 following the liberation of the South. In 1981, Military Zone 7 issued “Ownership and Usage Rights Certificate” No. 092/QĐ, dated April 16th, 1981, to Mr. Nguyễn Thanh T.

The certificate stipulated that the property was allocated to Mr. T to provide stable long-term accommodation for his family due to their housing needs. At the time of allocation, Mrs. Nguyễn Thị H and Mr. Nguyễn Văn T1 (Mr. T’s children) resided with him and maintained permanent residence at the property. In 1982, Mrs. Nguyễn Thị Kim L and Mr. Nguyễn Thanh H1 moved in and were registered in the household under Mr. T’s sponsorship.

As a person with contributions to the revolution, Mr. T was allocated the property at 63 B Street by Military Zone 7 in accordance with standards for military officers. However, prior to his death in 1995, Mr. T had not completed the procedures for purchasing the property. Pursuant to Articles 188 and 634 of the Civil Code of 1995, Mr. T’s right to rent or purchase the property constituted a transferable property right (monetary value) that could be passed to his heirs. Consequently, Mrs. H and Mr. T1 were entitled to inherit Mr. T’s right to rent or purchase the property.

[2] In 1998, Mrs. L submitted an application to the Housing Council of Military Zone 7 seeking to purchase the property pursuant to Decree No. 61/CP, dated July 5th, 1994, concerning the sale and business of housing. Mrs. H and Mr. T1 objected, disputing Mrs. L’s entitlement to purchase the property under Mr. T’s allocation.

In the Complaint Resolution minutes dated July 5th, 2001, the Inspectorate of the Ministry of Defense recorded an agreement between the parties: “…agreeing to allow Mrs. L to be designated as the purchaser of the property at 63 B Street. The division of monetary value, after deducting obligations to the State, will be negotiated amongst the siblings. If no agreement is reached, the matter will be resolved in accordance with applicable law.” In the Complaint Resolution minutes of the People’s Committee of H Ward dated August 17th, 2001, Mrs. L also confirmed “agreement to the commitments made in the resolution of Military Zone 7 dated July 5th, 2001…”

On October 2nd, 2001, the Directorate A of Military Zone 7 executed a lease agreement with Mrs. L for the rental of the property. Subsequently, the Housing Council of Military Zone 7 processed the sale of the property to Mrs. L under Decree No. 61/CP. On October 9th, 2002, Mrs. L and her husband (Mr. Nguyễn Phi H3, deceased in 2006) were issued a certificate of house ownership and land use rights.

Therefore, the purchase of the property at 63 B Street by Mrs. L was facilitated by the agreement reached between Mrs. H, Mr. T1, and Mrs. L on July 5th, 2001, which enabled Military Zone 7 to designate Mrs. L as the purchaser. Based on this agreement, it can be concluded that the property at 63 B Street is a shared property of Mrs. H, Mr. T1, and Mrs. L.

[3] The authorization letter executed by Mr. T on June 9th, 1993, stipulated: “I hereby authorize my daughter Nguyễn Thị Kim L to act as my representative during my lifetime and grant her full authority to resolve all matters pertaining to the rights, obligations, and responsibilities concerning the house allocated by Military Zone 7 and the city Housing Department (including the first-floor area and the ground floor area previously divided between two families) in the event of my demise.”

This authorization letter conferred upon Mrs. L the authority to act on behalf of Mr. T in procedural matters related to the property. It did not, however, bestow upon her ownership of the entire property, contrary to the erroneous conclusion reached by the appellate court.

[4] Furthermore, Mrs. L’s statement indicates that her household registration at 63 B Street resulted from Mr. T’s request that she relinquish possession of the property at 4/1 HV Street, Đ Ward, G District, Hồ Chí Minh City, which had been allocated to her family under the policy for martyrs’ families. However, no documentation within the case file substantiates the claim that Mrs. L was required to relinquish possession of 4/1 HV Street in order to register at 63 B Street. Mrs. L has asserted that she purchased 63 B Street under the policy for martyrs’ families, not under Mr. T’s entitlement.

According to Dispatch No. 8709/SXD-BKTBN, dated December 8th, 2008, from the Hồ Chí Minh City Department of Construction, the Housing Council of Military Zone 7 did not apply preferential policies for revolution contributors when selling the property to Mr. T.

Instead, the sale was based on documents such as the application to purchase State-owned housing, Mrs. L’s household registration, Decision 092/QĐ dated April 16th, 1981, regarding the allocation of the property to Mr. T, and the confirmation letter No. 672/XN-QLĐT dated December 5th, 1998, regarding Mrs. L’s relinquishment of 4/1 HV Street.

The first-instance and appellate courts failed to clarify whether Mrs. L purchased the property under Mr. T’s entitlement or her status as a martyr’s child, constituting an omission in their rulings.

[5] Moreover, in accordance with Decision No. 05/QĐ-UB-QLĐT dated January 4th, 1995, issued by the People’s Committee of Hồ Chí Minh City, the land price on B Street was VND 4,000,000/m². Given the land area of 328.21m², the calculated value would be VND 1,312,840,000. However, Mrs. L purchased the house and land for VND 392,296,000.

The first-instance and appellate courts failed to elucidate the specific preferential policy under which Mrs. L received a discount on the purchase price. The precise percentage reduction based on years of service and other relevant criteria was not specified in their rulings.

[6] The determination by the first-instance court that the property at 63 B Street constitutes shared property of Mrs. H, Mr. T1, and Mrs. L is well-founded. However, in determining the division ratio, the purchase cost incurred by Mrs. L and any contributions made by her towards the acquisition or maintenance of the property should have been deducted prior to dividing the residual value amongst the parties.

The first-instance court erred in allocating half of the property’s value to Mrs. L, subsequently deducting the purchase cost from the remaining half, and then dividing the remainder equally amongst Mrs. H, Mr. T1, and Mrs. L.

[7] The appellate court erred in its interpretation of Mr. T’s “Authorization Letter” dated June 9th, 1993, incorrectly concluding that it conferred upon Mrs. L ownership of the entire property at 63 B Street.

The appellate court further erred in determining that Mrs. L’s relinquishment of the property at 4/1 HV Street, Đ Ward, G District, Hồ Chí Minh City, to the State constituted consideration for her right to the subject property, thereby recognizing the property at 63 B Street as the sole property of Mrs. Nguyễn Thị Kim L and her husband, Mr. Nguyễn Phi H3 (deceased in 2006). This determination failed to adequately protect the rights and interests of Mr. T’s children as heirs to his estate.

[8] Upon re-adjudication of the case, the first-instance court should commission a survey and appraisal of the disputed property to ascertain its current market value. Following deduction of Mrs. L’s documented purchase costs and any verified contributions towards the acquisition or maintenance of the property, the residual value should be apportioned amongst the plaintiff and defendants in a manner that is equitable and consistent with applicable law.

Additionally, during their occupancy of the property, Mrs. L and Mr. Nguyễn Thanh H1 reportedly invested in repairs. Mr. Nguyễn Thanh H1 has submitted a claim for reimbursement of approximately VND 400,000,000 for these repair costs. Therefore, upon re-adjudication, the first-instance court should direct Mr. Nguyễn Thanh H1 to pay the requisite court fee advance and address this claim within the scope of the present proceedings.

In light of the foregoing,

IT IS DECIDED:

Pursuant to point b, clause 2 of Article 337, and clause 3 of Article 343 of the Civil Procedure Code:

1. To accept the Cassation Decision No. 01/QĐKNGĐT-VKS-DS dated August 22^nd, 2017, of the Chief Procurator of the Supreme People’s Procuracy.
2. To vacate the Appellate Civil Judgment No. 125/2015/DS-PT dated August 21^st, 2015, of the High People’s Court in Hồ Chí Minh City and vacate the First-instance Civil Judgment No. 186/2014/DS-ST dated March 6^th, 2014, of the Hồ Chí Minh City People’s Court concerning the case of “Dispute over the division of shared property in the purchase of a State-owned house” between the plaintiff Mrs. Nguyễn Thị H and the defendant Mrs. Nguyễn Thị Kim L, and other interested parties.
3. To remand the case file to the Hồ Chí Minh City People’s Court for first-instance retrial in accordance with the law.

CONTENT OF THE CASE LAW:

“[1] … As a person with contributions to the revolution, Mr. T was allocated the property at 63 B Street by Military Zone 7 in accordance with standards for military officers. However, prior to his death in 1995, Mr. T had not completed the procedures for purchasing the property. Pursuant to Articles 188 and 634 of the Civil Code of 1995, Mr. T’s right to rent or purchase the property constituted a transferable property right (monetary value) that could be passed to his heirs. Consequently, Mrs. H and Mr. T1 were entitled to inherit Mr. T’s right to rent or purchase the property.”

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