To ensure the conclusion and execution of contracts in real estate transfer, the parties involved often prepare a deposit contract. So, when does a deposit contract hold validity? Is an unnotarized deposit contract for real estate transfer in Vietnam valid?
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Is an unnotarized deposit contract for real estate transfer in Vietnam valid? (Illustration)
According to current legal regulations, a deposit contract in Vietnam is considered a civil transaction and must comply with the conditions for effective civil transactions as stipulated in Article 117 of the Civil Code 2015:
Conditions for effective civil transactions
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.
According to Clause 2, Article 119 of the Civil Code 2015, if the form is a mandatory condition for effective civil transactions, apart from the conditions of validity stipulated in Clause 1, Article 117 of the Civil Code 2015, the civil transaction must also meet the form conditions according to related legal regulations.
However, according to the provisions in the Civil Code 2015, a deposit contract in Vietnam is not required to be in writing. And the deposit contract is not one of the types of contracts regarding land use rights that must be notarized as stipulated in Clause 3, Article 176 of the Land Law 2013:
Rights and obligations of economic organizations which acquire land use rights or change land use purposes
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3. Economic organizations acquiring the agricultural land use rights in accordance with law have the following rights and obligations:
a/ If they acquire land use rights without changing, the land use purpose, they have the rights and obligations prescribed in Clause 2, Article 174 of this Law;
b/ If they acquire land use rights and change the land use purpose and are eligible for being allocated land with land use levy or leased land with full one-off rental payment for the entire lease period, they have the rights and obligations prescribed in Clause 2, Article 174 of this Law;
c/ If they acquire land use rights and change the land use purpose and are eligible for being leased land with annual rental payment, they have the rights and obligations prescribed in Article 175 of this Law.
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Thus, according to the above provisions, a deposit contract for real estate transfer is not required to be notarized or certified for legal validity. The parties must execute and perform the real estate transfer contract as agreed.
Thuy Tram
