Conditions for buying and selling real estate
Youme Law Firm LLC replied: Clause 1, Article 45 of the 2024 Land Law, the person transferring or donating land use rights must meet the following conditions:
Having a Certificate of land use rights or a Certificate of house ownership rights and land use rights or a Certificate of land use rights, house ownership rights and other assets attached to land or a Certificate of land use rights and ownership rights of assets attached to land;
Except for cases of inheritance of land use rights, conversion of agricultural land when consolidating land, exchanging plots, donating land use rights to the State, communities and cases specified in Clause 7, Article 124 and Point a, Clause 4, Article 127.
Land without disputes or disputes that have been resolved by competent State agencies, judgments, decisions of courts, decisions or judgments of arbitration that have come into legal effect;
Land use rights are not subject to seizure or other measures to ensure enforcement of judgments in accordance with the provisions of the law on civil judgment enforcement;
Within the land use term;
Land use rights are not subject to temporary emergency measures as prescribed by law.
In case of notarized real estate purchase, the name cannot be transferred
Although according to regulations, the parties are eligible to buy and sell real estate and successfully notarize the transfer contract according to the provisions of law. However, below are 3 common cases after the parties notarize the land sale and purchase contract but are disadvantageous for the transferee.
First: Illegally built real estate on the land
- Buying agricultural land but having constructed works on the land: The seller builds a house on agricultural land, but the land area with a house has not been converted to the correct purpose of use.
Risks for buyers: Due to violating land use purposes, buyers may have to pay a fine, and may be forced to demolish the project if the seller does not cooperate to resolve the issue according to Article 10 of Decree 123/2024.
- Buying real estate with a construction permit but illegally built: The seller builds a house that does not comply with the content on the permit (exceeding the floor, encroaching on the area...).
Risks for buyers: Sanctioned for administrative violations according to Clause 6, Article 16 of Decree 16/2022.
If buying and selling a house without completing it, the buyer can only sign a notary contract for transferring land use rights without being able to transfer the house on the land. This also means that home buyers only have the right to use the house without the right to own it.
Second: Property in dispute
- In case the parties have notarized the transfer contract but do not carry out the name change procedure as prescribed. This leads to assets that may be in dispute with a third party (inheritance dispute, boundary, ownership right).
Risks for buyers: The land registration agency refuses to carry out the name change procedure; loses money but cannot transfer the name; must participate in legal disputes.
Third: Prevented from transferring land use rights
- Land use rights are subject to seizure, other measures are applied to ensure enforcement of judgments according to the provisions of the law on civil judgment enforcement, and temporary emergency measures are applied according to the provisions of law.
Risks for buyers: Not allowed to transfer the name even if the contract has been notarized; the land management system will refuse to receive the application; may lose both money and property; forced to file a lawsuit to protect rights.
