Is it mandatory to write the transfer purpose in the contract for transfer of land use rights in Vietnam?
Is it mandatory to write the transfer purpose in the contract for transfer of land use rights in Vietnam?
According to Clause 1, Article 167 of the 2013 Land Law of Vietnam on the rights of land users as follows:
The right to exchange, transfer, lease, sublease, inherit, donate, mortgage land use rights and contribute land use rights as capital
1. Land users may exercise the rights to exchange, transfer, lease, sublease, inherit, donate, mortgage land use rights and to contribute land use rights as capital in accordance with this Law.
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Thus, land users have the right to dispose of land use rights by transferring.
Land use right transfer contract is a contract between parties whereby the transferor of land use right transfers the land and the land use right to the transferee.
The transferee pays the transferor according to the provisions of the Civil Code and the law on land.
Pursuant to the provisions of Article 47 of the 2014 Law on Real Estate Trading of Vietnam, currently, a contract for the transfer, lease or sublease of land use rights includes the following basic contents:
- Information of the transferor and transferee: Full names, ID numbers, contact addresses;
- Rights and obligations of the parties;
- Information on land type, class, area, location, number, boundary and land condition (recorded according to the certificate of land use right);
- The land use term of the transferor; the remaining land use term of the transferee;
- Transfer price;
- Payment method and term;
- Third party's rights to the transferred land (if any);
- Other information related to land use rights (is there a mortgage, where is the mortgage? If yes, how to solve it?...);
- Responsibilities of the parties when breaching the contract;
- Validity of contract.
Thus, the current law is not required in the content of the land use right transfer contract to state the purpose of the land use right transfer.
Is it mandatory to write the transfer purpose in the contract for transfer of land use rights in Vietnam?
What are the conditions for transfer of land use rights in Vietnam?
According to the provisions of Clause 1, Article 188 of the 2013 Land Law of Vietnam, land users may exercise the rights to exchange, transfer, lease, sublease, inherit, donate or mortgage land use rights and contribute land use rights as capital when meeting the following conditions:
- Having the certificate, except the case prescribed in Clause 3, Article 186 of the 2013 Land Law of Vietnam and the case of receiving inheritance prescribed in Clause 1, Article 168 of the 2013 Land Law of Vietnam;
- The land is dispute-free;
- The land use rights are not distrained to secure judgment enforcement;
- Within the land use term.
In addition to the above conditions, the land user, when exercising the right to transfer land use rights, must also meet the conditions prescribed by the 2013 Land Law of Vietnam.
The transfer of land use rights must be registered at the land registration office and takes effect from the time of registration in the cadastral book.
Is it possible to authorize another person to sign a contract for transfer of land use rights in Vietnam?
According to the provisions of Clause 1, Article 64 of Decree No. 43/2014/ND-CP, it is stipulated as follows:
Contracts and transaction documents on land use rights and ownership of land-attached assets of households shall be signed by the persons named in the certificates or authorized in accordance with the civil law.
In addition, according to Article 562 of the 2015 Civil Code of Vietnam, the authorization contract is as follows:
Authorization contracts
Authorization contract means a contract between parties whereby an attorney has the obligation to perform an act in the name of a principal. The principal shall only be required to pay remuneration if so agreed or so provided by law.
Thus, an authorization contract means a contract between parties whereby an attorney has the obligation to perform an act in the name of a principal. The principal shall only be required to pay remuneration if so agreed or so provided by law.
The purchase and sale of land under an authorization contract is the exercise of the right to transfer land by a person on behalf of the land user. The scope of authorization is specified in accordance with the content agreed upon in the authorization contract.
According to Clause 1, Article 64 of Decree No. 43/2014/ND-CP stipulating contracts and transaction documents on land use rights and ownership of land-attached assets as follows:
Contracts and transaction documents on land use rights and ownership of land-attached assets
1. Contracts and transaction documents on land use rights and ownership of land-attached assets of households shall be signed by the persons named in the certificates or authorized in accordance with the civil law.
2. Contracts and transaction documents on land use rights and ownership of land-attached assets of groups of land users or groups of owners of land-attached assets shall be signed by all group members or enclosed with authorization documents in accordance with the civil law, except the case of apartment owners sharing the use of a land parcel in an apartment building.
Thus, the person named on the Certificate or the authorized person in accordance with the civil law may sign contracts and transaction documents on land use rights and ownership of land-attached assets when it has been agreed in writing by members of the land-using household and that document has been notarized or authenticated in accordance with law.
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