Legal provisions on damages arising from property ownership disputes

Damages arising from property ownership disputes are among the most common and noteworthy legal issues in practice. This article examines the relevant legal provisions on damages caused by property ownership disputes and relevant legal issues, thereby helping individuals and organizations protect their legitimate rights and interests.

Damages arising from property ownership disputes are among the most common and noteworthy legal issues in practice. This article examines the relevant legal provisions on damages caused by property ownership disputes and relevant legal issues, thereby helping individuals and organizations protect their legitimate rights and interests.

I. Current situation of damages arising from property ownership disputes

Damages resulting from property ownership disputes are prevalent and complex in Vietnam. The primary causes include a lack of transparency in procedures, conflicts of interest, unbalanced information and resources between parties, and gaps in the legal framework governing the establishment and protection of ownership rights.

Lawsuits and disputes often involve claims for restitution of property and compensation for damages, accounting for a significant proportion of civil proceedings before the courts.

II. Understanding of damages arising from property ownership disputes

Damages arising from property ownership disputes include material and spiritual losses borne by parties involved in the dispute, such as legal costs, property damage, loss of business opportunities, and impacts on daily life and reputation. These damages arise when ownership rights are infringed upon, leading the owner to request the court to compel the infringing party to return the property, cease the infringing act, and compensate for damages.

1. Definition

According to Article 105 of the Civil Code 2015, Property includes objects, money, valuable documents, and property rights.

Disputes over property rights include disputes over the rights to possess, use, and dispose of property, as well as disputes regarding compensation for damage to property.

Although the law does not provide a specific definition of property ownership disputes, it can be understood, based on the above analysis, that a property ownership dispute arises when two or more parties claim ownership of the same property and deny the ownership of others, resulting in the ownership status of the property being undetermined. Damages in such disputes refer to the material and spiritual losses suffered by the disputing parties during the course of the dispute.

2. Common causes of property ownership disputes

Common causes include:

Inheritance disputes: When there is disagreement over the distribution of an estate, especially in the absence of a will or an unclear will.
Disputes over marital property: Typically arise during divorce proceedings, involving disagreement over the division of jointly owned property.
Disputes over jointly owned property: When multiple parties co-own a property (e.g., land, houses, ancestral property) without clearly defined ownership or management arrangements.
Claims for restitution of property: When one party lends or allows another to use property, but the latter fails to return it.
Land and housing disputes: Disputes over boundaries, shared access, building rights, or overlapping land use rights certificates.

III. Legal provisions on damages arising from property ownership disputes

Understanding legal provisions related to damages in property ownership disputes is essential for many stakeholders. However, given amendments to Vietnamese law, correctly understanding and applying these provisions is not always straightforward.

1. Legal provisions governing the settlement of damages

According to Articles 163 and 164 of the Civil Code 2015 on the protection of ownership and other property rights:

No one may be unlawfully restricted or deprived of their ownership rights or other rights to property.
In cases of national defense, security, national interests, emergencies, or natural disaster prevention, the State may compulsorily purchase or requisition property with compensation at market value.
Owners and persons with other property rights have the right to protect their rights and prevent infringements by lawful means.
Owners and persons with other property rights may request courts or competent authorities to compel infringing parties to return the property, cease unlawful interference with property rights, and compensate for damages.

2. Competent authority to settle damages arising from property ownership disputes

Pursuant to Clause 2, Article 26 of the Civil Procedure Code 2015, disputes over property ownership fall under the jurisdiction of the People’s Courts.

In addition, Article 186 of the Civil Procedure Code provides that individuals whose legitimate rights and interests are infringed may request the court to resolve the matter.

Accordingly, when a property ownership dispute arises, parties may request the court to resolve it.

It is a formal dispute resolution mechanism involving the People’s Court, a representative of State judicial power. The dispute resolution process must strictly comply with procedural law. Court judgments and decisions are enforceable through the state’s judgment enforcement system.

3. Consequences of failing to settle damages of property ownership disputes

Failure to settle damages in property ownership disputes may result in civil, administrative, or criminal liability depending on the nature of the violation:

Civil liability: The infringing party must return the property, cease unlawful interference, and compensate for damages in accordance with Clause 2, Article 164 of the Civil Code 2015.
Administrative sanctions: If the infringing act does not constitute a criminal offense, the offender may be subject to administrative fines. Fines range from 2 million VND to 5 million VND for acts of destruction or intentional damage to others’ property under Article 15 of Decree No. 144/2021/ND-CP.
Criminal liability: If property damage is valued at 2 million VND or more or less than 2 million VND but falls under special circumstances provided in Clause 1, Article 178 of the Penal Code 2015 (as amended in 2017), the offender may be criminally prosecuted for destruction or intentional damage to property.

IV. Questions on damages arising from property ownership disputes

To help readers better understand this issue, NPLaw has compiled common questions and answers below:

1. Who is liable for compensation when damages arise from property ownership disputes?

Under Clause 2, Article 164 of the Civil Code 2015, the party infringing upon property ownership rights must return the property, cease unlawful interference, and compensate for damages.

Article 170 of the Civil Code 2015 also stipulates that owners and holders of other property rights may demand that infringing parties compensate for damages.

Therefore, the party whose infringing conduct causes damage to property is liable for compensation.

2. Can both material and non-material damages be claimed?

According to Article 13 of the Civil Code 2015, any infringement of civil rights entitles individuals and legal entities to full compensation for damages, unless otherwise agreed or provided by law.

Article 584 of the Civil Code provides that anyone who infringes upon the life, health, honor, dignity, reputation, property, or other lawful rights and interests of another and thereby causes damage must compensate for it, unless otherwise provided by the Civil Code or relevant laws.

Under Article 590 of the Civil Code, spiritual damages shall be compensated if the infringement causes serious harm to the honor, dignity, or mental well-being of the injured party, up to a maximum of ten times the statutory base salary at the time of settlement.

Therefore, both material and spiritual damages may be claimed in property ownership disputes.

3. In a sale and purchase contract, who takes liability if damages arise from ownership disputes?

Article 444 of the Civil Code 2015 provides that:

The seller must guarantee that the property sold is not subject to ownership disputes with a third-party.
If the property is disputed by a third party, the seller must defend the buyer’s rights; if the third party has legitimate ownership of part or all of the property, the buyer may cancel the contract and claim damages from the seller.
If the buyer knew or should have known that the property belonged to a third party but still purchased it, the buyer must return the property to the rightful owner and has no right to claim damages.

4. What legal elements must be proven when claiming damages?

Article 585 of the Civil Code 2015 provides the following principles for compensation:

Actual damages must be fully and promptly compensated. Parties may agree on the amount, form (cash, in-kind, or services), and manner (lump sum or installment) of compensation, unless otherwise provided by law.
The party liable for compensation may have the amount reduced if they are not at fault, acted unintentionally, or the damages are excessive relative to their financial capacity.
If the amount of compensation becomes inappropriate with actual circumstances, either party may request the court or competent authority to adjust it.
If the injured party has a part of fault in causing the damage, they shall not be compensated for the portion of the damage caused by their own fault.
The injured party is not entitled to compensation if the damage results from their failure to take necessary and reasonable measures to prevent or mitigate the loss.

5. Does force majeure exclude liability for damages?

Article 584 of the Civil Code 2015 provides that:

Anyone who commits an act that infringes upon the life, health, honor, dignity, reputation, property, rights, or other legitimate interests of another person and causes damage must compensate, except in cases where the Civil Code 2015 or other relevant laws provide otherwise.
A person causing the damage is not liable if the damage results from a force majeure or entirely from the fault of the injured party, unless otherwise agreed or provided by law.
Where property causes damage, the owner or possessor is liable for compensation, except where the damage arises under the above circumstances.

Accordingly, force majeure events exclude liability for damages arising from property ownership disputes, unless otherwise agreed or provided by law.

V. Looking for a reputable lawyer to handle property ownership disputes

The above information provides answers and legal guidance regarding damages arising from property ownership disputes. With a team of experienced lawyers and legal specialists, NPLaw offers reliable and professional legal services to ensure the best protection of clients’ legitimate rights and interests. For legal assistance, please contact NPLaw for consultation and support.