SALE, PURCHASE OF APARTMENT, WHICH FORM OF CONTRACT TO SIGN?

Apartment building means any multi-storey building which has multiple apartments, public stairs, hall ways, private areas, common areas and common infrastructural works for organizations, households or individuals, including apartment buildings for residential use and mixed-use buildings for both business and residential purposes. To ensure legality and protect the interests of parties in transactions with high-value assets, the sale, purchase of apartment buildings must be made into a contract according to a prescribed form.

1.         Who can buy an apartment?

For real estate in general and apartment buildings in particular, for the purpose of managing and ensuring legal rights and interests for participating parties, the law sets certain conditions and limits for these subjects participating in transactions, ownership and use of real estate.

Accordingly, subjects with the right to participate in sale, purchase of apartment include:

–          Domestic organizations and individuals;

–          Vietnamese people residing abroad, foreign organizations and individuals for the purpose of using as offices, production, business and service establishments according to their functions.

–          Vietnamese people residing abroad, foreign-invested enterprises doing real estate business according to the cases allowed by regulations.

2.         What contents must the sale, purchase contract for apartment have?

The sale, purchase contract of apartment must have the following main contents:

–          Names and addresses of contracting parties;

–          Information about the real estate;

–          Sale, 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.

3.         Does the law regulate the valid form of sale, purchase contract of apartment?

The sale, purchase contract of apartment must comply with Form No. 01 Appendix issued with Decree 02/2022/ND-CP.

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

4.         What should be noted when signing a contract of sale, purchase of apartment?

a.         Purchase price in contract of sale, purchase of apartment

The sale, purchase price of appartment shall be agreed by contracting parties and stated in the agreement. If the State stipulates regulations on the price, the contracting parties shall comply with those regulations.

b.         Payment for transactions of sale, purchase of apartment

–          The payment for transactions shall be agreed by contracting parties and followed the regulations of laws on payment.

–          Penalties and compensation for damage caused by late payment from the buyer, or late real estate transfer from the seller shall be agreed by contracting parties and stated in the contract.

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5.         When will a sale, purchase contract of apartment take effect?

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.