Is a deposit contract for real estate purchase required to be notarized in Vietnam?

What is deposit in Vietnam?

Pursuant to Article 328 of the 2015 Civil Code, regulations on deposit are as follows:

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.

Thus, it can be understood that a deposit is when one party gives the other party a sum of money or precious metals, gemstones or other valuable things for a period of time to ensure the conclusion or performance of a contract in Vietnam.

After the contract is concluded, the deposited assets will, depending on the previous agreement, be refundable or used to offset payment obligations in Vietnam.

Note: If the depositing party refuses to enter into and perform the contract, the deposited property belongs to the deposit receiving party; If the deposit receiving party refuses to enter into or perform the contract, it must return to the depositing party the deposited property and an amount equivalent to the value of the deposited property, unless otherwise agreed.

Is a deposit contract for real estate purchase required to be notarized in Vietnam? (Image from the Internet)

Is a deposit contract for real estate purchase required to be notarized in Vietnam?

Pursuant to Article 328 of the 2015 Civil Code, regulations on deposit:

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.

According to the above provisions in Vietnam, a deposit contract is an agreement between the parties, whereby the depositing party delivers to the deposit receiving party a sum of money or precious metals, gemstones or other valuable things for a period of time as security for the entering into or performance of a contract.

Thus, current law does not require notarization of real estate purchase and sale deposit contracts. The parties can agree on whether or not to notarize the deposit contract in Vietnam.

What types of written contracts that exercise the rights of land users must be notarized?

Pursuant to Clause 3, Article 167 of the 2013 Land Law, which stipulates the right to exchange, transfer, lease, sublease, inherit, donate, mortgage land use rights and contribute land use rights as capital:

The right to exchange, transfer, lease, sublease, inherit, donate, mortgage land use rights and contribute land use rights as capital

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3. The notarization and certification of contracts and documents on the exercise of the rights of land users shall be conducted as follows:

a/ Contracts on transfer, donation, mortgage or contribution of land use rights as capital or the rights to use land and land-attached assets must be notarized or certified, except the case of real estate business prescribed at Point b of this Clause;

b/ Contracts on lease or sublease of land use rights or the rights to use land and land-attached assets, a contract on exchange of agricultural land use rights, a contract on transfer of land use rights or the rights to use land and land-attached assets in which one party or all parties involved in the transaction is/are a real estate business organization or organizations must be notarized or certified at the request of the parties;

c/ The documents on inheritance of land use rights or the rights to use land and land-attached assets must be notarized or certified under the civil law;

d/ The notarization shall be conducted at notarization-practicing organizations and the certification shall be conducted at commune-level People’s Committees.

Thus, types of contracts and documents exercising the rights of land users must be notarized, including:

- Contracts on transfer of land use rights or the rights to use land and land-attached assets.

- Contracts on donation of land use rights or the rights to use land and land-attached assets.

- Contracts on mortgage of land use rights or the rights to use land and land-attached assets.

- Contracts on contribution of land use rights as capital or the rights to use land and land-attached assets.

- Documents on inheritance of land use rights or the rights to use land and land-attached assets;

In addition, the following contracts are notarized or authenticated at the request of the parties:

- Contracts on lease or sublease of land use rights or the rights to use land and land-attached assets, a contract on exchange of agricultural land use rights;

- Contract on transfer of land use rights or the rights to use land and land-attached assets in which one party or all parties involved in the transaction is/are a real estate business organization or organizations.

Best regards!