Pursuant to Article 328 of the 2015 Civil Code, the party refuses to conclude and perform the land use right transfer contract will be fined if the parties have an agreement as a deposit.
In other words, only punished if the parties agreed and recorded in the "deposit" contract for the written contract or must prove that the parties have agreed to "deposit" for the profit contract speak.
Synonyms in the contract does not record the word "deposit" but instead record "prepayment" or not clearly define whether the deposit or prepaid money is considered a prepaid money.
This content is prescribed in Article 37 of Decree 21/2021/ND-CP as follows: In case one side of the contract assigns the other party to a sum of money that the parties do not clearly identify the deposit or prepaid money This money is considered a prepaid money ”.
In case the contract is "prepaid" or not clearly defined as a deposit or a prepaid money, it is considered a prepaid money and then the prepaid party refuses to conclude, perform the transfer contract The soil will not be punished.
Not being punished in this case is quite understandable, because prepayment is understood as an amount of money that the prepaid party gives to the property when the contract has not been concluded and performed the sale contract.
Therefore, if the buyer is planning to buy (prepaid) refuses to buy (refusing to conclude, perform the land use right transfer contract), the prepayer must return that money and not refuse What fine is, unless the parties have other agreements.
Therefore, the owner of the house and the land should understand this regulation to protect the rights and legitimate interests, avoid confusion between deposits and prepayments. House buyers and land can apply this regulation to avoid being penalized when refusing to conclude or perform the land use right transfer contract.
