Real Estate Knowledge: Understand Contract Terms of the Sales and Purchase Agreement

, Real Estate Knowledge: Understand Contract Terms of the Sales and Purchase Agreement

In the previous article, we broke down the structure of a Sales and Purchase Agreement (SPA) – an important ownership document in Vietnam. This one today will walk you through the necessary terms and procedures of signing your SPA. By successfully understanding this document, you are one step closer to owning your property with ease in Vietnam.

Contract terms

The contract’s main terms are on the second and third pages:

  1. The purchase price

The agreed-upon price between the buyer and the seller is the property selling price. This price must be written in both letters and numbers in Vietnamese currency (VND). It should be indicated whether this figure includes or excludes additional products. For example, whether the price includes furnishings or whether the buyer is responsible for any residual developer costs.

  1. Fees associated with it

Other fees that may be charged in addition to the selling price of the property include:

  • Brokerage commissions
  • Fees for notary services
  • The price of acquiring a pink book
  • Personal income taxes, registration taxes, and management charges to the developer
  • Other costs incurred throughout the property transfer process.
  1. Method of payment

In most cases, the SPA will specify whether payment will be made in cash or via bank transfer.

If it’s flexible, however, both parties can agree on a payment plan and keep this information out of the contract.

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  1. Contract clauses pertaining to property ownership and transfer

The seller will hand over the property to the buyer once the buyer has paid in full for it. The buyer will then receive the following documents:

  • The pink book
  • Property-related invoices, tax declarations, and payments
  • The property’s current state and its assets are listed on the handover list
  • Construction permit
  • Other necessary documents
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This procedure is carried out in accordance with mutually agreed-upon terms.

Top tip: Determine who is responsible for paying fees and taxes, as well as moving the property documents/pink book to the new owner’s name. In most cases, the buyer is responsible for this. For convenience and efficiency, you might want to use real estate agent services to help you with the procedure.

  1. How do you settle a disagreement?

Purchasing and selling real estate is a complicated procedure that can lead to disagreements.

In most cases, both sides will try to resolve their differences through private negotiations, or even legal interference if necessary.

Signing your document

This is where both parties state that they agree to and accept the contract’s conditions.

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Top tip: Before signing and notarizing the document, double-check all of the information. The parties could add their fingerprints to the contract in addition to signing it for further validity.

Information on notaries

The notary’s evidence and the time and place of notarization are listed here. You may also discover the notary’s information, as well as their stamp and signature, here.

Top tip: If you ever need to verify ownership of the property, the notarization number will be helpful.

Conclusion

The SPA is a crucial document in property transactions in Vietnam, and it is also one of the most difficult. You’re one step closer to owning your ideal property in Vietnam by signing the SPA.

If you’re not familiar with how the Vietnamese legal system works, Homebase can assist you. Their staff works effectively with international clients and provides affordable property ownership options.

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Call +84 94 823 00 33 or go to http://homebase.com.vn/ to learn more about Homebase.

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This article is co-written with Homebase – a leading proptech company in Southeast Asia. Homebase revolutionizes homeownership through more accessible options than traditional mortgages. Visit their website at http://homebase.com.vn/ for more detail.

 

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