When does a land purchase contract take effect in Vietnam?

When does a land purchase contract take effect in Vietnam?

Clause 3, Article 167 of the 2013 Land Law stipulates:

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.

Article 500 of the 2015 Civil Code stipulates: The contract of land use rights means the agreement between the parties that the land user convert, transfer, lease, sublease, donate, mortgage and contribute land use rights as capital or exercise other rights to the other party as prescribed in the Law on land; and the other party shall exercise rights and perform obligations according to the contract to the land user.

According to Article 501 of the 2015 Civil Code:

Contents of contract of land use rights

1. General provisions on contracts and the content of common contracts related in this Code shall also apply to contracts on land use rights, unless otherwise provided by law.

2. Contents of the contract of land use rights are not contrary to the provisions of the purpose of use, the duration of land use, zoning, land use planning and the rights and obligations stipulated by law on land and other provisions of relevant laws.

Article 5 of the Notary Law 2014 stipulates: A notarized document is valid from the date a notary signs and appends the seal of his/her notarial practice organization to it.

Thus, the effective date of contracts whose form is required by law to be in writing and notarized or authenticated, including real estate purchase contracts, this contract will take effect from date of notarization or authentication. When the contract takes effect, the parties must exercise their rights and obligations to each other according to their commitments in Vietnam.

When does a land purchase contract take effect in Vietnam? (Image from the Internet)

Is a handwritten loan contract legally valid in Vietnam?

According to the provisions of Article 463 of the 2015 Civil Code: Contract for the loan of property means an agreement between parties whereby a lender delivers property to a borrower. When the loan falls due, the borrower must repay the lender property of the same type in accordance with the correct quantity and quality, and must pay interest if so agreed or so provided by law.

At the same time, current law also does not stipulate a condition for the validity of a contract for the loan of property to be notarized or authenticated. Therefore, the handwritten loan document is a contract for the loan of property in Vietnam.

The above handwritten loan note is completely legally valid if it fully meets the conditions for validity of civil transactions as prescribed in Article 117 of the 2015 Civil Code as follows:

1. A civil transaction shall be effective when it satisfies all of the following conditions:

a) Participants in the transaction have legal personality and/or legal capacity in conformity with such transaction;

b) Participants in the transaction act entirely voluntarily;

c) The purpose and contents of the transaction are not contrary to the law and/or social ethics.

2. The forms of civil transactions shall be the conditions for its effectiveness in cases where it is so provided for by law.

Can an appendice be made to change the name of the contract in Vietnam?

Article 403 of the 2015 Civil Code stipulates:

1. Appendices providing details on certain terms and conditions of a contract may be attached to the contract. The appendices shall have the same effectiveness as the contract. The contents of the appendices shall not contradict the contents of the contract.

2. If the terms and conditions of the appendices contradict the terms and conditions of the contract, such terms and conditions of the appendices shall be ineffective, unless otherwise agreed. If the parties agree that the terms and conditions of the appendices contradict the terms and conditions of the contract, the terms and conditions of the contract which are contradicted shall be deemed to have been amended.

Thus, it is possible to make an appendice to correct contract information, but it should be noted that there must be confirmation from both parties, clearly stating the change of contract name and the basis for signing the contract in Vietnam.

Best regards!