What are conditions for transferring real estate trading contracts in Vietnam?

1. What are conditions for transferring real estate trading contracts in Vietnam?

According to Article 50 of the Real Estate Business Law 2023, the conditions for transferring real estate trading contracts are as follows:

- The transfer of contracts for the sale, lease-purchase of houses, and construction works must ensure the following conditions:

+ It is in the category of not yet submitted for application to the competent state authority for a certificate of land use rights, ownership of assets attached to land according to the provisions of land law;

+ The contract for sale, lease-purchase of houses, and construction works is not under dispute notified, accepted, or resolved by the competent authority according to the law, or if there is a dispute, it has been resolved with a legally effective judgment, decision, or ruling;

+ The houses, construction works under the sale, lease-purchase contract are not subject to enforcement, mortgage to secure the performance of obligations according to the law, except where agreed by the mortgagee;

+ There is a sale, lease-purchase contract established under the legal provisions on real estate business.

- The transfer of the sale, lease-purchase contract of houses, construction works is applicable to the entire contract. In the case of sale, lease-purchase of multiple houses, construction works in the same contract, if the parties wish to transfer each house, construction work, the parties must amend the sale, lease-purchase contract of houses, construction works, or sign an addendum to the contract before carrying out the transfer under the 2023 Real Estate Business Law.

2. What are rights and obligations of parties in transferring real estate trading contracts in Vietnam?

The rights and obligations of parties involved in transferring real estate trading contracts according to Article 51 of the Real Estate Business Law 2023 are as follows:

- The purchaser, prospective lease-purchaser of future housing, and lease-purchaser of available construction works have the right to transfer the contract of sale, lease-purchase of future housing, and the contract of lease-purchase of available construction works when the application for a certificate of land use rights, ownership of assets attached to land has not been submitted to the competent state authority.

- The transferee of the contract inherits and continues to perform the rights and obligations of the purchaser, prospective lease-purchaser of future housing, and the lease-purchaser of available construction works with the investor. The investor is responsible for facilitating the parties in contract transfer and shall not charge any fees related to the transfer of the contract.

- The transferee of the contract for sale, lease-purchase of future housing, and available construction works is issued a certificate by the competent state authority of land use rights, ownership of assets attached to land according to the provisions of land law.

3. What are prohibited acts in real estate trading in Vietnam?

Prohibited acts in real estate business according to Article 8 of the Real Estate Business Law 2023 are as follows:

- Conducting real estate business without sufficient conditions as prescribed by the Real Estate Business Law 2023.

- Forging documents, intentionally falsifying information about real estate, real estate projects for business purposes.

- Not publicizing information about real estate, real estate projects for business purposes as prescribed by the real estate business law.

- Committing fraud, deceit, or deception in real estate business.

- Collecting funds in the sale, lease-purchase of houses, construction works, the constructed floor area in future construction against the Real Estate Business Law 2023; using collected funds from buyers, prospective lease-purchasers of houses, construction works, future constructed floor area contrary to the provisions of law.

- Failing to perform or inadequately performing financial obligations to the State.

- Issuing real estate brokerage practice certificates, using real estate brokerage practice certificates not conforming to the legal provisions on real estate business.

- Collecting, managing, and using fees, charges, and funds related to real estate business contrary to the provisions of law.

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