Borrowed land to build a house, when it is reclaimed, will there be compensation?
Ms. NTH (Thanh Vinh ward) asked: Three years ago, I borrowed land from my sister to build a level 4 house for my mother and I to live in. We only talked verbally, no paperwork was made. Now my sister wants the land back, can I request compensation for the cost of building the house?
Reply:
According to regulations, only those with legal land use rights can decide, lease, lend or transfer land. Building a house on someone else's land without clear documents is a big legal risk, because when the landowner reclaims it, the "builder" has no right to keep the land.
However, if it can be proven that the land borrowing has the consent of the landowner, even if only verbally, this relationship can be considered a property borrowing contract (according to Articles 494 - 499 of the 2015 Civil Code). In that case, the house builder can be considered for reasonable compensation for the invested construction part, if the construction is agreed upon by the landowner or does not object during the entire period of use.
.jpg)
On the contrary, if the construction is done without the consent of the landowner, this act can be considered as encroachment and occupation of land. In that case, the landowner has the right to request the demolition and restoration of the original state and the builder has no legal basis to claim compensation.
Thus, if Ms. H. has evidence that the landowner has agreed or approved to build a house, the competent authority can consider reimbursing a reasonable portion of the costs when resolving the dispute. On the contrary, if there is no basis for proof, the compensation request will be difficult to accept.
