What are the contents of real estate business contracts in Vietnam in 2024?
What are the contents of real estate business contracts in Vietnam in 2024?
Pursuant to the latest regulations in the Law on Real Estate 2023, types of real estate business contracts:
- Contract for sale and purchase or lease purchase of housing;
- Housing lease contract;
Pursuant to Article 46 of the Law on Real Estate 2023, the above types of contracts must include the following primary contents:
Types of contracts used in real estate business
A contract for sale and purchase, lease or lease purchase of housing or building shall, inter alia, include the following primary contents:
- Names and addresses of contractual parties;
- Information on the real estate;
- Selling, lease or lease purchase price;
- Payment deadline and method;
- Bank guarantee for the investor’s fulfillment of financial obligations, in case of sale of off-plan housing;
- Time for handover of the real estate and relevant documents;
- Guarantee;
- Rights and obligations of the parties;
- Liability for breach of contract;
- Breach of contract;
- Cases in which the contract is terminated or invalidated and remedial measures;
- Methods for dispute settlement;
- Effective date of the contract.
A contract for transfer or lease of rights to use land that already has infrastructure within real estate project shall, inter alia, include the following primary contents:
- Names and addresses of contractual parties;
- Information on type, area, location, sign, boundaries and existing status of the land lot and property on land (if any);
- Land use term; price for transfer, lease or sublease of LURs, including property on land (if any);
- Payment deadline and method;
- Time limit for handover of land and relevant documents;
- Rights and obligations of the parties;
- A third party’s rights over the land lot (if any);
- Liability for breach of contract;
- Penalties for breach of contract;
- Actions taken after the contract for lease of sublease of LURs expire;
- Cases in which the contract is terminated or invalidated and remedial measures;
- Methods for dispute settlement;
- Effective date of the contract.
A contract for transfer of entire or partial real estate project shall, inter alia, include the following primary contents:
- Names and addresses of contractual parties;
- Basic information on the approved project;
- Detailed information on the whole or part of the project to be transferred;
- Transfer price;
- Payment deadline and method;
- Time limit for handover of whole or part of the project and relevant documents;
- Rights and obligations of the parties;
- Responsibility of the parties for completion of LURs-related administrative procedures;
- Liability for breach of contract;
- Breach of contract;
- Cases in which the contract is terminated and remedial measures;
- Methods for dispute settlement;
- Effective date of the contract.
A real estate service contract shall, inter alia, include the following primary contents:
- Names and addresses of contractual parties;
- Entities and contents of the service;
- Service requirements and results;
- Duration of service provision;
- Service charges, remuneration and commission;
- Payment deadline and method;
- Rights and obligations of the parties;
- Methods for dispute settlement;
- Effective date of the contract.
What are the contents of real estate business contracts in Vietnam in 2024?
Who must use standard form contracts in Vietnam?
Pursuant to Article 45 of the Law on Real Estate 2023, it is stipulated:
Use of contracts in real estate business
1. When entering into any real estate business contract or real estate service contract, organizations and individuals are required to comply with provisions of the Law on Real Estate Business and the Civil Code.
2. Investors of real estate projects and real estate enterprises shall use standard form contracts prescribed in Article 44 of this Law, and make their real estate business contracts publicly available as prescribed in point d clause 2 Article 6 of this Law before application.
3. Real estate business contracts specified in Article 44 of this Law shall not be used in sale, lease, lease purchase or sublease of social housing.
Thus, the subjects who must use standard form contracts are:
+ Investors of real estate projects
+ Real estate enterprises
What are the conditions for transfer of real estate business contracts in Vietnam according to the latest regulations?
Pursuant to the provisions of Article 50 of the Law on Real Estate 2023, the conditions for transfer of real estate business contracts are as follows:
Transfer of a contract for sale and purchase or lease purchase of housing or building is subject to the following conditions:
- The transfer is made before an application for issuance of certificate of LURs and ownership of property on land is submitted as prescribed by the Land Law;
- The contract for sale and purchase or lease purchase of housing or building to be transferred is not in any dispute which has been notified, handled or is under consideration by a competent authority, or only involves in disputes which have been completely resolved under sentences, decisions or judgments which have taken legal effect;
- The housing or building that is the subject of the sale and purchase or lease purchase contract to be transferred is not distrained or mortgaged to serve the fulfillment of obligations in accordance with regulations of law, unless agreed by the mortgagee;
- The sale and purchase or lease purchase contract has been established in accordance with regulations of the Law on Real Estate Business.
The entire contract for sale and purchase or lease purchase of housing or building shall be transferred. If the parties to a contract for sale and purchase or lease purchase of multiple houses or buildings wish to transfer each house or building, they shall follow procedures for modify the signed contract or enter into an appendix to the signed contract before carrying out the contract transfer as prescribed in this Law.
Law on Real Estate 2023 comes into force from January 1, 2025
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