Instructions on how to pay to avoid risks when buying land
1. Common risks when buying land:
Land is a high-value asset, so buying and selling often carries many risks if the parties do not comply with the law.
The actual risks that occur when buying and selling land can include:
– Risk when land does not have a Certificate or is not eligible for transfer or purchase
– Risk of disputes between co-owners when land belongs to many individuals and households.
– Land is in a long-term dispute, leading to difficulty in buying and selling, etc.
Therefore, to avoid risks, buyers and sellers must be careful to anticipate difficulties that may arise.
2. Instructions on how to pay to avoid risks when buying land:
2.1. Make a land deposit in advance:
One of the ways to avoid risks when buying and selling land is to make a deposit in advance.
According to the provisions of Article 328 of the 2015 Civil Code, a deposit is understood as the act of a depositor giving the depositor a sufficient amount of money as agreed by the parties or a precious metal, gemstone or other object. has a different value for a certain period of time with the purpose of ensuring the conclusion and performance of the contract.
To put it simply, in reality, a deposit is understood as the buyer giving an amount of money in advance to the land seller to "reserve the place".
This deposit is very necessary, it can solve the problem of the buyer being afraid of losing the opportunity to buy this plot of land, and it can also solve the problem of the buyer having time to carefully study the information of the land plot such as: Is the land in dispute with any other third party?; Is the land being mortgaged to a bank or any other party?; Will the land be taken out to ensure distraint for execution of the judgment?; Or checking whether the Certificate is real?;…. In fact, in many cases, people are in a hurry to buy land right away without having time to thoroughly research the information about the land plot, leading to disputes over land use rights transfer contracts and land disputes occurring a lot.
So when making a deposit, how much money should the buyer deposit?
In fact, the law does not stipulate a minimum or maximum deposit amount. This deposit amount will be agreed upon by the parties themselves. Usually, according to our experience, the deposit level should only range from 20-30% of the total value of the land plot for sale, because the nature of the deposit is just to set up a "reservation" story in advance to ensure the purchase of land. Sign a contract for future sale and transfer.
And when buyers and sellers agree to make a deposit, they should also pay attention to fully clearly stating the rights and obligations of the parties. Because if you don't pay attention, many people just say that after receiving a deposit or making a deposit and then not buying or selling anymore, they just need to return the money and that's it. However, according to the law, if the depositor refuses to enter into or perform the contract, the deposit asset will not be recovered and will become the property of the depositee.
If the party receiving the deposit later does not want the land anymore and refuses to enter into a contract, the depositor will have to return the deposit and at the same time pay an amount equivalent to the value of the deposited property. unless the parties agree otherwise.
2.2. Ensuring the transfer process takes place in accordance with the law:
– Make sure the land use rights transfer contract must be notarized and fully authenticated.
According to legal regulations, contracts for transfer of use rights must be notarized and authenticated. If the parties conduct sales only through word of mouth or by hand, the contract will be invalid.
– When performing procedures for notarizing a land use rights transfer contract, to avoid risks, the buyer can pay directly at the notary office after signing the transfer contract between the parties. Note when making payment. After that, there must be a money receipt clearly stating the amount of money and confirming the signatures of the parties. To be more careful, you can ask a notary to authenticate the money receipt.
- Payment after signing this transfer contract should only be 80-95% of the contract value, retaining about 5%-20% and paying the remaining amount after completing the Red Book transfer procedure. The buyer has received the Red Book, so the obligations of both parties will be binding.