Nowadays, you have to carry out certain procedures to make your papers valid, especially when buying and selling real estate. In particular, during the transactions, if a dispute occurs, the contract between the buyer and the seller will play an important role in the settlement phase. However, many people do not know whether they have to notarize or authenticate the contract to make the law recognize it. So, in this article LSX legal firm will answer the question: “Notarize or attest when buying and selling real estate in Vietnam?”
Legal grounds
- Law on Land 2013
- Law on notarization 2014
- Civil Code 2015
- Circular 257/2016/TT-BTC
What is notarization?
Notarization means the written certification by a notary of a notarial practice organization of the authenticity and lawfulness of a contract or another civil transaction (below referred to as contract or transaction) or of the accuracy, lawfulness, and conformity with social ethics of the Vietnamese or foreign-language translation of a paper or document (below referred to as translation) which is prescribed by law or voluntarily requested by an individual or organization to be notarized.
In other words, the certification of the authenticity of the contract and the documents from the original established in civil; economic, commercial, and other social relations.
Buying and selling real estate require notarization or attestation?
Clause 3, Article 167 of the 2013 Land Law stipulates the notarization and certification of contracts and documents on the exercise of the rights of land users:
“a) Contracts on transfer, donation, mortgage or contribution of land use rights as capital or the rights to use land and land-attached assets must be notarized or certified, except for the case of real estate business prescribed at Point b of this Clause;
b) Contracts on lease or sublease of land use rights or the rights to use land and land-attached assets, a contract on the exchange of agricultural land use rights, a contract on transfer of land use rights or the rights to use land and land-attached assets in which one party or all parties involved in the transaction is/are a real estate business organization or organizations must be notarized or certified at the request of the parties;
c) The documents on the inheritance of land use rights or the rights to use land and land-attached assets must be notarized or certified under the civil law;
d) The notarization shall be conducted at notarization-practicing organizations and the certification shall be conducted at commune-level People’s Committees.”
Thus, real estate transactions require notarization or attestation. That means the parties have the right to choose either depending on their condition.
Real estate sale and purchase contract without notarization and attestation
According to Article 129 of the Civil Code 2015:
A civil transaction violating conditions for validity pertaining to form will become invalid, except for any of the following cases:
- If the form of a civil transaction, required to be established in writing, does not comply with regulations of law, but a party or the parties has/have fulfilled at least two third of the obligations in the transaction, a court, at his/her/their request(s), shall issue a decision on recognition of the validity of such transaction.
- If the form of a civil transaction, required to be established in writing, violates against regulations on notarizing or authorization, but a party or the parties has/have fulfilled at least two third of the obligations in the transaction, a court, at his/her/their request(s), shall issue a decision on recognition of the validity of such transaction. In this case, the parties need not perform the notarizing or authorization.
Thus, the house purchase and sale transaction means a transaction requiring notarization and attestation. In this case, if you do not notarize or attest to the house sale and purchase contract; this contract will become invalid. For invalid civil transactions, the parties must return to each other what they have received.
Procedures for notarization of real estate purchase and sale contracts
Firstly, the parties bring all the documents to the Notary Office to request the notarization of the contract and transaction of the parties.
Secondly, the Notary examines the documents. If the documents valid; the notary will proceed to draft the Contract at the request of the parties; or according to the Model Contract brought by the parties.
Thirdly, the parties re-read and check the content of the notarized contract.
Fourthly, the parties sign, and fingerprint the Contract, and the Notary notarizes the Contract.
Lastly, the parties pay the notarization fee and receive the original Contract.
Fee for notarization of real estate purchase and sale contract
Fees for notarization of real estate purchase and sale contracts specified at Point a, Clause 2, Article 4, Circular 257/2016/TT-BTC:
- Firstly, under 50 million VND: 50 thousand VND.
- Secondly, from 50 million VND to 100 million VND: 100 thousand VND.
- Thirdly, from over 100 million VND to 01 billion VND: 0.1% of property value or value of the contract, transaction.
- Fourthly, from over 01 billion VND to 03 billion VND: 01 million VND + 0.06% of the asset value or the value of the contract or transaction exceeding 01 billion VND.
- Fifthly, from over VND 03 billion to VND 05 billion VND: 2.2 million VND + 0.05% of the asset value or value of the contract, transaction exceeding VND 03 billion.
- From over 05 billion VND to 10 billion VND: 3.2 million + 0.04% of the asset value or value of the contract, transaction exceeding 05 billion VND.
- From over 10 billion VND to 100 billion VND: 5.2 million VND + 0.03% of the asset value or value of the contract, transaction exceeding 10 billion VND.
- Lastly, over 100 billion VND: 32.2 million + 0.02% of the asset value or value of the contract, transaction exceeding 100 billion VND (maximum collection rate: 70 million VND/case).
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations in business suspension;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
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- Do I have to notarize papers at the notary’s office in Vietnam?
Related questions
Notarization requester means a Vietnamese or foreign individual or organization that requests notarization of a contract, transaction or translation in accordance with the Law on Notarization 2014.
Authorization contract means an agreement between parties whereby an attorney has the obligation to perform an act in the name of a principal. The principal shall only be required to pay remuneration if so agreed or so provided by law.
In case you can not travel, you can conduct the notarization outside the headquarters of the notarial practice organization.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Notarize or authenticate when buying and selling real estate in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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