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Settlement of deposit contract disputes when buying land in Vietnam

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When signing a deposit contract, the content of the contract will be agreed upon by the parties on the condition that it is not contrary to law; or societal morality. However, the reality shows that deposit contract disputes still occur frequently. So, if there is a dispute about the deposit contract when buying land, how should it be resolved? Let’s find out with Lawyer X through the following article:

Legal grounds

Civil Code 2015

Civil Procedure Code 2015

Consulting content

Some common types of land purchase deposit contract disputes

The content of the deposit contract shall be agreed upon by the parties on the condition that it is not contrary to law; or societal morality. However, deposit contract disputes still occur with some common types of disputes as follows:

– Dispute about “deposit penalty”

Under Clause 2, Article 328 of the 2015 Civil Code; Unless otherwise agreed by the parties, the “deposit penalty” shall apply according to the following provisions:

If the depositor refuses to enter into the contract; When performing the contract, the deposited property (usually a deposit) belongs to the party receiving the deposit.

If the deposit recipient refuses to enter into the contract performance; then the obligation to pay the depositor the deposited property; and an amount equivalent to the value of the deposited property.

When the parties have other agreements on the deposit penalty such as a double penalty; three times the deposit, the agreement shall be followed.

– Disputes over rights; the obligations of the parties: Is a dispute over the content of the right terms; obligations of the parties in the deposit contract.

– Disputes over commitments of the parties: When making an ordinary deposit, the land user, the house owner commits to the legality of the land and house use rights as issued with the Certificate (Pink Book, Book of the Land). red), houses and land are not in dispute, houses and land are not distrained to ensure judgment enforcement, houses and land are not mortgaged, and land is still in use. If it is not as promised, there may be a dispute.

– Other disputes related to real estate such as incorrect area, etc.

3 methods of settling deposit contract disputes when buying land

Method 1: Negotiate

Negotiation is a method of settling deposit contract disputes; through the disputing parties to discuss and arrange themselves; resolve any disagreements that arise. This is a simple dispute resolution method, but it has the limitation that it is not very effective.

Method 2: Mediation

Mediation is a method of settling deposit contract disputes; with the participation of a third-party mediator to assist; explain and persuade the parties to seek solutions to eliminate disputes. The third party may be a person knowledgeable in the law; in good standing or through the grassroots mediator.

Similar to negotiation, conciliation in many cases is not highly effective.

Method 3: File a Lawsuit in Court

Initiation is a method of settling disputes according to civil procedures through the Court; this is the method of settlement which chosen by most parties when a dispute occurs; settlement results guaranteed to be enforced by the State (civil judgment enforcement agencies); but the settlement time is longer and must pay court costs and fees in advance.

Procedures for initiating a dispute over the deposit contract when buying land

Initiating a dispute over the deposit contract for the transfer of land and house use rights shall conduct according to the following procedures:

Step 1: Prepare the petition file

The petition file includes:

– Complaint according to the form.

– List of documents and evidence (not required to submit all documents but only need to submit documents proving the lawsuit claim).

– A copy of the petitioner’s papers: Household registration, citizen’s identity card or people’s identity card, or valid passport.

Step 2: Submit lawsuit petition

– In which court to file a lawsuit?

Note: The place to file a lawsuit below applies when the parties to the deposit contract dispute are individuals.

Under Clause 3, Article 26, Point a Clause 1, Article 35, and Point a Clause 1, Article 39 of the 2015 Civil Procedure Code; the petitioner files the petition at the district-level People’s Court where the defendant resides; working (People’s Courts of districts, towns, provincial cities, cities under centrally-run cities).

– How to file a lawsuit:

The petitioner applies to one of the following forms:

– Filed directly at the competent People’s Court as above (actually mainly filed in this way).

– Send it to the competent People’s Court by post.

– Submitted through the Court’s Portal.

Step 3: The court receives the application, processes the application, and accepts the application

Step 4: Prepare for trial and trial

Article 203 of the 2015 Civil Procedure Code stipulates that the time limit for preparation for trial of the deposit contract dispute case must not exceed 04 months; The time limit for complicated cases is not more than 02 months (total time is not more than 06 months); When the time limit expires, the Court will bring the case to trial if it is not in the case of temporary suspension or suspension.

After the first-instance judgment issued, within 15 days the disputing parties have the right to appeal if there are grounds as prescribed; otherwise, the judgment will take effect.

Related article:

What is consular contact? Consular contact organization

Responsibilities of agencies in consular contact organizations

Related question

What is a deposit penalty?

The penalty is understood as the party receiving the deposit violates its commitment, and refuses to perform the established contract, then in addition to returning the deposited property to the depositor, it will also be fined an amount equivalent to the asset value. deposit.

What is the penalty for breach of the deposit contract?

According to the principles of civil law, the parties are allowed to agree on the fine level when refusing to enter into or perform the contract (referred to as the deposit penalty). In case the parties do not agree, the deposit penalty will also comply with the provisions of Clause 2, Article 328 of the Civil Code 2015.

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