When will the deposit be fined and how much is the deposit?
The case of being fined for a deposit and the deposit fine are clearly stipulated in Clause 2, Article 328 of the 2015 Civil Code as follows:
In case the contract is signed and implemented, the deposited assets shall be returned to the depositors or deducted to fulfill the payment obligation; if the depositors refuse to sign and execute the contract, the deposited assets shall belong to the deposit recipient; if the deposit recipient refuses to sign and execute the contract, he/she shall return the depositors the deposit assets and an amount equivalent to the value of the deposited assets, unless otherwise agreed.
Deposit fined but still profitable if in the following cases
With the above penalty, there are still cases where the deposit recipient, even though the deposit is fined, still makes a profit, specifically: During the waiting period for the depositor to notarize the land use rights transfer contract according to regulations, the deposit recipient will receive a transfer request at a higher price, the difference between new transactions will be higher than the deposit level if any.
For example: Mr. A and Mr. B agreed to transfer Mr. A's land plot for the amount of 1 billion VND, Mr. B deposited to Mr. A for the amount of 300 million VND, and the two sides did not agree on any further terms on the deposit fine. Thus, the deposit fine is set at 300 million VND.
While waiting for Mr. B to notarize the land use rights transfer contract, Mr. A received a request from Mr. C with the transfer amount of 1.5 billion VND, Mr. C deposited 400 million VND to Mr. A.
Thus, in theory, when Mr. A transfers the land use rights to Mr. C, Mr. A will be fined a deposit of 300 million VND but still make a profit of 200 million VND.
From the above example, it can be seen that the deposit recipient is fined but still profitable and legally safe if he meets the following conditions:
Condition 1: The difference received from the new proposal must be greater than the deposit of the old deposit contract.
Condition 2: The offer must be certain to be implemented.
Normally, when receiving a new offer and calculating the difference higher than the deposit for the old person, it is necessary to negotiate with the new person to make a transfer and notarization contract or immediately authenticate that contract according to regulations.
Although according to regulations, the deposit recipient is fined but still profitable in the case as analyzed, the risk will only be ruled out if the new proposal is firmly implemented or preferably transferred to a new person with a higher amount.
If the above conditions are not satisfied, it will contain many legal risks and in fact many people will be scammed, even facing the possibility of being fined twice.
The above is the regulation on being fined for a deposit but still making a profit when selling land, but the deposit recipient must pay close attention when applying this regulation, because many people have been scammed and put in a difficult position, especially when they need money and want to sell quickly.
