Cases where real estate sale and purchase contracts are invalid according to current regulations

Như Hạ (T/H) |

The 2024 Land Law and the 2015 Civil Code clearly stipulate cases where real estate sale and purchase contracts have no legal value.

Case 1: Land sale and purchase contract is not eligible

Pursuant to Article 45 of the 2024 Land Law, the conditions for transferring land use rights are as follows:

(1) 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 of the 2024 Land Law.

(2) Land without disputes or disputes that have been resolved by competent state agencies, judgments, decisions of the Court, decisions or judgments of the Arbitration that have come into legal effect.

(3) 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.

(4) Within the land use term.

(5) Land use rights are not subject to temporary emergency measures as prescribed by law.

Thus, if the transferor lacks one of the above conditions, the transfer will not be made and the real estate sale and purchase contract will also be invalidated.

In addition, when exercising the rights to transfer land use rights, in addition to the conditions specified in Clause 1, Article 45 of the 2024 Land Law, land users must also meet the conditions according to the cases in Clauses 3 and 4, Article 45 of the 2024 Land Law.

Case 2: Forged land sale and purchase contract

According to Article 124 of the 2015 Civil Code, which stipulates invalid civil transactions due to forgery, specifically as follows:

(1) When the parties establish a fake civil transaction to conceal another civil transaction, the fake civil transaction shall be invalid, and the hidden civil transaction shall still be valid, except in cases where that transaction is also invalid according to the provisions of this Code or other relevant laws.

(2) In case of establishing a fake civil transaction to evade obligations to third parties, that civil transaction shall be invalid.

Thus, if the real estate sale and purchase contract is only a form of conceal another civil transaction, that contract will be considered invalid because it is forged.

Case 3: Unctified real estate sale and purchase contract

Pursuant to Clause 3, Article 27 of the 2024 Land Law, the notarization and certification of contracts and documents exercising the rights of land users are implemented as follows:

(1) Contracts for transfer, donation, mortgage, capital contribution using land use rights, land use rights and assets attached to land must be notarized or certified, except for (2) cases.

(2) Contracts for lease, sublease of land use rights, land use rights and assets attached to land, contracts for conversion of agricultural land use rights; Contracts for transfer, capital contribution in the form of land use rights, land use rights and assets attached to land, assets attached to land in which one party or parties participating in the transaction is a real estate business organization are notarized or certified at the request of the parties.

Thus, if the real estate sale and purchase contract is subject to notarization or certification but the parties do not comply, the contract has no legal value and is considered invalid.

Case 4: Real estate sale and purchase contract violates the law

Pursuant to Article 123 of the 2015 Civil Code, civil transactions with purposes and content that violate the prohibition of the law and are contrary to social ethics are invalid.

This means that when a real estate sale and purchase contract is determined to violate the provisions of the law or is against social morality, the court has the right to declare the contract invalid.

Như Hạ (T/H)
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