The transfer of real estate business contracts is an essential aspect of the real estate market, facilitating the exchange of rights and obligations between parties. This process is governed by a strict legal framework to ensure transparency, fairness, and compliance with the law. The 2023 Real Estate Business Law and related regulations provide detailed conditions, rights, and obligations for the parties involved, as well as clear procedural requirements for contract transfers. Understanding these provisions is crucial for individuals and organizations participating in real estate transactions to avoid legal risks and safeguard their interests.
- Conditions for Transferring Real Estate Business Contracts
Pursuant to Article 50 of the 2023 Real Estate Business Law, the transfer of contracts for the sale, lease-purchase of houses, and construction works must meet the following conditions:
- The transfer of contracts for the sale or lease-purchase of houses and construction works must meet the following conditions:
- The property is not subject to an application submitted to competent state authorities for the issuance of a certificate of land use rights and ownership of assets attached to the land, in accordance with the provisions of land law.
- The contract for the sale or lease-purchase of houses and construction works is not involved in any disputes that are being notified, accepted, or resolved by competent authorities as prescribed by law. If there has been a dispute, it must have been resolved through legally effective judgments, decisions, or arbitral awards.
- The houses or construction works under the contract for sale or lease-purchase are not subject to seizure or mortgage to secure obligations as prescribed by law, except in cases where the mortgagee explicitly consents.
- There is a legally established contract for the sale or lease-purchase of the property in accordance with the provisions of real estate business law.
- The transfer of contracts for the sale or lease-purchase of houses and construction works must apply to the entire contract.
In cases where multiple houses or construction works are included in a single contract and the parties wish to transfer individual houses or construction works, the parties must amend the contract for the sale or lease-purchase of houses and construction works, or sign an annex to the contract, before proceeding with the transfer in accordance with the provisions of this Law.
- Rights and Obligations of Parties in the Contract Transfer
Pursuant to Article 51 of the 2023 Real Estate Business Law, the rights and obligations of parties involved in the transfer of real estate business contracts are as follows:
- Rights of the Initial Buyer/Lessee
The initial buyer/lessee of future houses or existing construction works has the right to transfer the contract to another party if the application for a land use rights certificate has not yet been submitted to competent authorities.
- Rights of the Transferee
The transferee is entitled to inherit and continue performing the rights and obligations of the initial buyer/lessee with the real estate developer.
- Responsibilities of the Real Estate Developer
- The developer is required to facilitate the contract transfer process and must not charge any fees related to the transfer.
- The developer must ensure that the transferee receives all rights, including the issuance of the land use rights certificate in accordance with land law.
- Timeframe for Confirmation of Contract Transfer
Pursuant to Clause 2, Article 13 of Decree No. 96/2024/ND-CP, the procedures and timeframe for confirming the transfer of real estate business contracts are as follows:
- The real estate project developer is obligated to review and confirm the transfer within 5 working days from the date of receipt of a complete and valid set of documents.
- Developers are prohibited from collecting any additional fees during the confirmation process.
- Upon confirmation, the developer retains two original copies of the transfer contract and returns six original copies to the submitting party along with the relevant documents as stipulated by law.
In conclusion, the transfer of real estate business contracts is a highly regulated process aimed at protecting the rights of all parties and ensuring the smooth functioning of the real estate market. By adhering to the conditions set forth in the 2023 Real Estate Business Law, such as proper documentation, the absence of disputes, and compliance with procedural requirements, parties can ensure the legality and efficiency of their transactions. Real estate developers also play a crucial role in facilitating these transfers without imposing additional costs, promoting fairness and professionalism. A thorough understanding of these legal provisions enables stakeholders to confidently navigate the complexities of real estate contract transfers, fostering trust and stability in the real estate market.
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1. Lawyer Vu Thi Phuong Thanh, Manager of TLA Law LLC, Ha Noi Bar Association
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Email: tmle@tlalaw.vn.
Dinh Phuong Thao