LEASE PURCHASE CONTRACT FOR CONDOTEL (TOURIST APARTMENT), WHAT SHOULD BE NOTED?

Tourist apartment (Condotel) are a popular type of tourist accommodation currently, with diverse and convenient uses and gradually removed barrier and improved legal corridor since Decree No. 10. /2023/ND-CP. As a type of asset with great value, to ensure their legal rights and interests in the transaction, parties to the lease purchase contract of tourist apartment are recommended to pay attention to the issues in the article below.

1.         What is tourist apartment lease purchase?

Lease purchase contract means an contract between parties, whereby the lessee shall pay an option fee to the lessor and be entitled to use a building; the remaining payment shall be considered as the monthly payment; the lessee shall acquire ownership of that building if he pays off the total amount.

Lease purchase transactions of tourist apartment need to comply with the following principles:

–          Tourist apartment for lease and purchase must ensure quality, safety, environmental sanitation and other necessary services for normal operation and use according to functions, design and contractual contracts.

–          The lease and purchase of tourist apartment must be associated with land use rights.

–          The parties participating in the contract can agree to shorten the lease purchase term before the lease term expires in the signed contract.

2.         Rights of the lessee

–          Request the lessor to provide sufficient and truthful information about the tourist apartment.

–          Request the lessor to transfer the tourist apartment and related documents under contract; complete the procedures for application for Certificate of land, ownership of land and property on land when the lease purchase duration expires.

–          Sublet a part of total of the building or transfer the lease purchase contract.

–          Request the lessor to repair the tourist apartment in case the building’s damage not caused by the lessee’s fault.

–          Request the lessor to pay compensation for damage caused by the lessor’s fault.

–          Acquire ownership of the building from the date on which the lessor receives payment in full.

–          Exercise other rights specified in the contract.

3.         Regulations on lease and purchase contract for tourist apartment

The lease and purchase contract for tourist apartment must have the following main contents:

–          Names and addresses of contracting parties;

–          Information about the real estate;

–          Lease purchase price;

–          Payment method and deadline;

–          Real estate transfer deadline and enclosed documents;

–          Warranty;

–          Rights and obligations of contracting parties;

–          Liability for any breaches of contract;

–          Penalties for any breaches of contract;

–          Cases in which the contract is terminated and solutions;

–          Dispute settlement;

–          Effective date of the contract.

4.         Regulated contract form

Lease purchase contract for tourist apartment  must comply with Form No. 02 Appendix issued with Decree 02/2022/ND-CP.

Noted, lease purchase contract for tourist apartment  must be made in writing, notarized or authenticated according to regulations.

The effective date of the contract shall be agreed and stated in the contract by contracting parties. If the contract has been notarized or authenticated, the effective date of the contract is the notarizing or authenticating date. If the contracting parties have not agreed or the contract has been not notarized or authenticated, the effective date is the date on which the contract is signed.

>> SALE, PURCHASE  CONTRACT OF OFFICETEL (OFFICE APARTMENT COMBINED WITH ACCOMMODATION), HOW IS REGULATED? https://linconlaw.vn/sale-purchase-contract-of-officetel-office-apartment-combined-with-accommodation-how-is-regulated/

>> TERMINATION OF LABOR CONTRACT, EMPLOYEES’ OBLIGATIONS ON NOTIFICATION https://linconlaw.vn/termination-of-labor-contract-employees-obligations-on-notification/

5.         Transfer of lease purchase contract for tourist apartment 

Tourist apartment lease purchase contracts can be transferred according to the following regulations:

–          The lessee may transfer the lease purchase contract when the application for Certificate of land, ownership of houses and property on land granted to the lessee has not submitted to competent agencies. The transfer of lease purchase contract must be made in writing and certified by the lessor.

–          The transferee of lease purchase contract may resume rights and obligations of the lessee. The lessor must enable contracting parties to transfer the contract and do not collect any charges relating to the transfer of contract.

–          The transferee shall be granted the Certificate of land, ownership of houses and property on land by competent agencies as prescribed Law on land.