Primary contents of contracts used in real estate business in Vietnam

Primary contents of contracts used in real estate business in Vietnam (Internet image)

1. Primary contents of contracts used in real estate business in Vietnam

The primary contents of contracts used in real estate business in Vietnam according to Article 46 of the Law on Real Estate Business 2023 are as follows:

* Contracts for the sale, lease, or lease purchase of houses and construction works must include the following main contents:

- Names and addresses of the parties;

- Information about the real estate;

- Sale price, rental, lease purchase price;

- Payment method and deadline;

- Bank guarantee for the financial obligations of the investor in case of selling houses formed in the future;

- Deadline for delivery and receipt of real estate and accompanying documents;

- Warranty;

- Rights and obligations of the parties;

- Liability for contract breaches;

- Penalty for contract breaches;

- Cases of contract termination, cancellation, and handling measures;

- Dispute resolution method;

- Effective date of the contract.

* Contracts for the transfer, lease of land use rights with technical infrastructure in real estate projects must include the following main contents:

- Names and addresses of the parties;

- Information about the type of land, area, location, number, boundaries, and status of the parcel, assets attached to the land (if any);

- Land use term; transfer price, lease, sublease of land use rights, including attached assets (if any);

- Payment method and deadline;

- Deadline for land handover and accompanying documents;

- Rights and obligations of the parties;

- Third party rights to the parcel (if any);

- Liability for contract breaches;

- Penalty for contract breaches;

- Handling consequences when the contract expires in case of lease, sublease of land use rights;

- Cases of contract termination, cancellation, and handling measures;

- Dispute resolution method;

- Effective date of the contract.

* Contracts for the transfer of the entire or part of a real estate project must include the following main contents:

- Names and addresses of the parties;

- Basic information about the approved project;

- Detailed information about the entire project or part of the project being transferred;

- Transfer price;

- Payment method and deadline;

- Deadline for handover of the entire or part of the project and accompanying documents;

- Rights and obligations of the parties;

- Parties' responsibilities in carrying out administrative procedures related to land use rights;

- Liability for contract breaches;

- Penalty for contract breaches;

- Cases of contract termination and handling measures;

- Dispute resolution method;

- Effective date of the contract.

* Real estate service business contracts must include the following main contents:

- Names and addresses of the parties;

- Object and content of the service;

- Service requirements and results;

- Service implementation period;

- Service fees, remuneration, service commission;

- Payment method and deadline;

- Rights and obligations of the parties;

- Dispute resolution method;

- Effective date of the contract.

2. Regulations on transaction prices in real estate business in Vietnam

Regulations on transaction prices in real estate business in Vietnam according to Article 47 of the Law on Real Estate Business 2023 are as follows:

- The selling, transferring, leasing, or lease purchasing price of real estate, real estate projects put into business are agreed upon by the parties and recorded in the contract; in case the State has regulations on prices, the parties must adhere to those regulations.

- Organizations and individuals engaging in real estate business must accurately record the actual transaction price in the contract; they are responsible for recording the transaction price in the contract not in line with the actual transaction price.

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