Regulations on transfer documents of real estate purchase contracts formed in the future according to Vietnamese law

Will the investor be fined if he refuses to confirm the transfer document of a real estate purchase and sale contract formed in the future? What is the statute of limitations for sanctioning administrative violations against investors who refuse to confirm the transfer documents of real estate purchase and sale contracts formed in the future?

1. Does a document transferring a contract to buy and sell real estate formed in the future need confirmation from the investor?

Does a document transferring a contract to buy and sell real estate formed in the future need confirmation from the investor? According to the provisions of Clause 1, Article 59 of the Law on Real Estate Business 2014, as follows:

Transfer of contracts for sale and purchase of real estate in the form of housing into the future

1. The buyer or lessee has the right to transfer the contract of purchase and sale or lease-purchase of future housing when the application for a Certificate of land use rights, ownership of housing and other assets attached to land to the buyer or lessee has not been submitted to the competent state authority. The transfer of a contract to buy, sell, or lease a house to be formed in the future must be made in writing, with confirmation of the investor in the transfer document.

2. The contract transferee may continue to exercise the rights and obligations of the housing buyer and lessee with the investor. The investor is responsible for creating conditions for the parties in transferring the contract and must not collect any costs related to the transfer of the contract.

3. The transferee of the housing purchase and lease purchase contract is finally granted a Certificate of land use rights, ownership of housing and other assets attached to land by a competent state authority in accordance with the provisions of land law.

4. The contract transfer specified in this Article does not apply to social housing purchase and lease purchase contracts.

5. The Government regulates this Article in detail.

Accordingly, the transfer contract of real estate to be formed in the future must be confirmed by the investor.

2. Will the investor be fined if he refuses to confirm the transfer contract of real estate to be formed in the future?

Penalties for investors who refuse to confirm the transfer contract of real estate to be formed in the future are specified in Point g Clause 3, Point k Clause 6 Article 58 Decree 16/2022/ND-CP as follows:

Violation of regulations on real estate business

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3. Fine from 400,000,000 VND to 600,000,000 VND for one of the following acts:

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g) Refuse to confirm without a legitimate reason or incorrectly confirm the transfer contract of real estate purchase, sale or lease purchase to be formed in the future according to regulations;

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6. Remedial measures:

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k) Forced confirmation according to regulations for the acts specified in Point g, Clause 3 of this Article;

According to point c, clause 3, Article 4, Decree 16/2022/ND-CP stipulates the fine levels as follows:

Forms of punishment, maximum fines, remedial measures and sanctioning authority

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3. In this Decree, the maximum fine level is prescribed as follows:

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c) The fines specified in this Decree are the fines applicable to organizations (except the fines specified in Points a, b, Point c Clause 1 Article 24; Points a, b, c Clause 1 Article 59, point a Clause 3 Article 64, Article 65, Clause 1 (except point e Article 70 of this Decree is the fine level for individuals). For the same administrative violation, the fine for individuals is equal to 1/2 of the fine for organizations.

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According to the above regulations, an investor who refuses to confirm the transfer contract of real estate to be formed in the future without a legitimate reason may be subject to administrative sanctions with a fine of from 400,000,000 VND to 600,000,000 VND for organizations, and from 200,000,000 VND to 300,000,000 VND for individuals.

At the same time, the violating investor is also forced to confirm the transfer contract of real estate to be formed in the future according to regulations.

3. How long is the statute of limitations for sanctioning administrative violations against investors who refuse to confirm the transfer of real estate contracts formed in the future?

The statute of limitations for sanctioning administrative violations in real estate business activities is specified in Clause 1, Article 5 of Decree 16/2022/ND-CP as follows:

The statute of limitations for sanctioning administrative violations in real estate business activities is specified in Clause 1, Article 5 of Decree 16/2022/ND-CP as follows:|||SEG0002|| main

1. The statute of limitations for sanctioning administrative violations is 01 year for real estate business activities, management of technical infrastructure projects, and production of construction materials.

The statute of limitations for sanctioning administrative violations is 02 years for construction, management, and housing development activities.

Thus, the statute of limitations for sanctioning administrative violations for investors who refuse to confirm the contract transfer document Buying and selling real estate formed in the future without a legitimate reason is 01 year.