Proposal to tighten the contract of “promise to buy, promise to sell” in real estate transactions

Types of contracts in the form of “promise to buy, promise to sell”, or contracts of deposit, investment cooperation, capital contribution … are very commonly used in the field. real estate business last time. However, these forms of signing also arise and cause many consequences for customers if they sign with unscrupulous investors and businesses. Therefore, many experts suggest Real Estate Business Law should be supplemented with specific provisions on these types of contracts to protect the interests of customers.

Although signing transactions in the field of real estate, but types of contracts such as “promise to buy, promise to sell” are implemented in accordance with the Civil Law. The Law on Real Estate Business only regulates the acts since the two parties put pen to paper and signed the actual purchase and sale contract.

Specifically, for an apartment building, the foundation must be completed, the foundation land project must be completed, and the project must complete the investment procedures and have all the permits in accordance with the law. . This means that by signing various “promise to buy and sell” contracts, the investor has been able to mobilize capital from customers in many different forms even if the project has not been licensed. This is a huge risk for customers.

For example, according to the Law on Real Estate Business, the first payment does not exceed 30% of the contract value. But according to the Real Estate Association, there are contracts that deposit up to 90% of the property’s value.

“Here people take advantage of the deposit to secure the conclusion of a contract in the future. At this time, the contract has not been signed, only a deposit contract, a deposit record or a deposit memo that all The set is already “real money”, said Mr. Le Hoang Chau – Chairman of Ho Chi Minh City Real Estate Association.

Therefore, Mr. Chau proposed that the Law on Real Estate Business be supplemented with detailed regulations on the implementation of these types of contracts.

Mr. Le Hoang Chau said: “We suggest that the deposit act “promise to buy, promise to sell” and similar acts occur before signing an official real estate purchase and sale contract according to the Law on Real Estate Business. assets, so that we can control the risks and that will protect the legitimate rights and interests of the people.”

According to the lawyers, transactions in the form of “promising to buy and sell” contracts often result in future disputes, reducing property values ​​as well as causing many costs to society. Although it is referred to in the Civil Law, there are no specific provisions for the types of contracts “promised to buy, promise to sell”.

Lawyer Tran Minh Hai – Director of Law Firm Basico said: “If there are clear regulations in the Law on Real Estate Business, I think this is encouraging because when we regulate it, we think about it. to predict the situation, the risk factors and the troubles for the parties in civil transactions, so if there are such provisions, whether in the Law on Real Estate Business or the Law on Housing or real estate. Any law is good for the market.”

Experts say that the complete lack of a legal framework for these types of contracts puts customers in a position of “holding their tongues” when many customers’ understanding of the law is still very limited. Therefore, the authorities should soon study and put clear regulations on the types of contracts “promised to buy, promise to sell” into law.

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