Proposal to abolish mandatory notarization for 6 types of transactions

CAO NGUYÊN |

In the coming week, the draft Law on Notarization (amended) will be submitted to the National Assembly for approval. This draft proposes to remove 6 types of transactions from the list of mandatory notarization.

According to the expected program, on April 23, the National Assembly will press the button to vote to pass the Law on Notarization (amended).

The Ministry of Justice said that it has received and explained the opinions of National Assembly deputies on the above draft law. One of the notable contents is narrowing the scope of compulsory notarization transactions to create convenience for people.

The transactions include: a power of attorney from a person named in the house rental contract who has left the country for another person to stand in for the purchase of a house belonging to public property; a contract to transfer real estate business contracts; a written agreement of members with common land use rights when contributing capital to the enterprise; a power of attorney to resolve judgment enforcement related to property when the judgment debtor leaves the country; a power of attorney to exercise the right to complain; a contract to transfer the Bailiff Office.

The Ministry of Justice explained that reducing transactions that must be notarized is to reduce legal compliance costs, and at the same time encourage people to proactively choose notarization when necessary.

During the discussion at the First Session of the 16th National Assembly, delegate Nguyen Minh Tuan (Phu Tho province delegation) said that the content that people are currently particularly interested in is real estate notarization.

According to the delegate, this field is generating many problems in reality, so this law amendment needs to create conditions for transactions to be convenient and more effective.

The delegate from Phu Tho province said that we need to be flexible, it can be encouraging or not encouraging, or voluntary by traders, not requiring everyone to notarize.

Currently, if notarization is required, it is necessary to clarify whether it is formal notarization or content notarization, and whether notarization is responsible in transactions with suspicious issues related to violations.

For example, for tax evasion, in these real estate transactions, is notarization responsible? If not, no notarization is needed, just transact, sign a contract according to the State's guidance and pay taxes with receipts. Thus, it is considered that after the transaction is completed, there is no need to force people to notarize.

Some delegates also said that the draft has not clarified the criteria for determining mandatory notarized transactions, and at the same time pointed out the situation where the same transaction content is regulated in many different laws, causing difficulties in implementation.

Explaining this content, the Ministry of Justice said that reducing mandatory notarization transactions contributes to simplifying administrative procedures, creating favorable conditions for people and businesses, thereby supporting socio-economic development.

According to the drafting agency, transactions subject to notarization are cases that require strict participation conditions. Participants must have civil legal capacity, appropriate civil act capacity and be completely voluntary.

The draft also clearly states the principle of avoiding overlap with other laws. Accordingly, the Law on Notarization only stipulates general principles, while specific transactions that must be notarized will be regulated by specialized laws such as the Land Law and the Housing Law, in order to limit the rampant expansion of compulsory notarization transactions.

CAO NGUYÊN
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