Vietnam: What is the latest form of land purchase deposit contract in 2022? Is the land purchase deposit contract required to be notarized?
Is the land purchase deposit contract in Vietnam required to be notarized?
Currently, a number of laws such as the Civil Code 2015, the Land Law 2013, the Law on Notarization 2014 and the guiding documents do not have any provisions that stipulate whether the deposit contract is required to be notarized. There are regulations on notarization of contracts on the transfer, donation or donation of land use rights and land-attached assets.
However, to avoid disputes or other risks, the parties should notarize or authenticate or have witnesses.
Vietnam: What is the latest form of land purchase deposit contract in 2022? Is the land purchase deposit contract required to be notarized?
In which cases of dispute that the deposit is not performed in Vietnam?
According to the provisions of Clause 2, Article 328 of the Civil Code 2015, If the depositor refuses to enter into or perform the contract, the deposited property shall belong to the depositary, unless otherwise agreed.
However, if the depositor hands over the money to the depositary but does not agree to make a deposit or only has a money receipt but it does not say a deposit in the paper, there will be no penalty for the deposit.
In case there is only a money receipt (in which there is no word as deposit), the obligations of the parties in breach will be different from the deposit. If an amount is given without agreement as a deposit, then it is considered a "prepayment".
In essence, prepayment is an amount of money to fulfill payment obligations, in case the parties do not transfer land, such amount will be handled as follows:
- In case the money giver refuses to enter into and perform the contract, the prepaid money will be received back and will not be penalized, unless otherwise agreed by the parties.
- In case the money-receiving party refuses to enter into and perform the contract, it only has to return the prepaid amount and not pay a deposit penalty, unless otherwise agreed by the parties.
What are the penalties for not performing land purchase/sale contracts in Vietnam?
The deposit penalty is clearly specified in Article 328 of the Civil Code 2015, specifically as follows:
"Article 328. Deposit
1. Deposit is an act whereby one party (hereinafter referred to as the depositor) transfers to another party (hereinafter referred to as the depositary) a sum of money or precious metals, gemstones or other valuable things (hereinafter referred to as the deposited property) for a period of time as security for the entering into or performance of a contract.
2. Upon a contract being entered into or performed, any deposited property shall be returned to the depositor, or deducted from the amount of an obligation to pay money. If the depositor refuses to enter into or perform the contract, the deposited property shall belong to the depositary. If the depositary refuses to enter into or perform the contract, it must return the deposited property and pay an amount equivalent to the value of the deposited property to the depositor, unless otherwise agreed."
Accordingly, the deposit penalty is specified as follows:
- If the depositor refuses to enter into or perform the contract, the deposited property shall belong to the depositary.
-If the depositary refuses to enter into or perform the contract, it must return the deposited property and pay an amount equivalent to the value of the deposited property to the depositor, unless otherwise agreed.
Note: In case the Parties have other agreements such as no deposit penalty or deposit penalty at a lower or higher level than the deposit amount, such agreement shall be complied with, provided that the content of the agreement is not contrary to law or social ethics.
What is the form of land purchase deposit contract in Vietnam?
Download the form of land purchase deposit contract in Vietnam: Click here.
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