The land use right transfer contract is a common type of contract in everyday life. So, how to make this kind of contract valid and not disabled?
WHAT IS THE LAND USE RIGHT TRANSFER CONTRACT?
Given the inherent complex nature, land disputes usually occur, mainly because of invalid land use right transfer contracts. The process of resolving disputes may last for decades. Therefore, in order to minimize the risks that may occur, anyone wishing to engage in land transactions should be aware of law provisions on land use right transfer contracts.
According to the provisions of Article 697 of the current Civil Code, a contract for the assignment of land use rights is an agreement between parties whereby the land use right assignor transfers the land and land use rights to the assignee and the assignee shall pay money to the assignor in accordance with the provisions of this Code and the land law. a contract for the assignment of land use rights must comply with the following principles: Free to enter into contracts but not contrary to law and social ethics; voluntary, equal, goodwill, cooperative, honest, and upright.
CONTENT OF THE LAND USE RIGHT TRANSFER CONTRACT
Land use right transfer contracts have the following contents: (1) Names and addresses of the parties; (2) Rights and obligations of the parties; (3) Category, grade, acreage, location, code number, boundaries and conditions of the land; (4) Land use term of the assignor; the remainder of the land use term for the assignee; (5) Transfer price; (6) Mode and time of payment; (7) Rights of a third party to the transferred land; (8) Other information related to the land use rights.
IN ORDER FOR A LAND USE RIGHT TRANSFER CONTRACT NOT TO BE DECLARED INVALID
According to Clause 2 of Article 689 of Civil Code 2005 and Point a of Clause 3 of Article 167 of the Land Law 2013, the contracts on land use right transfer must be made in writing, notarized, or authenticated in accordance with the provisions of law. Thus, if contracts on land use right transfer are not notarized, or authenticated, they shall be declared invalid when disputes arise.
In addition, in accordance with Article 134 of the Civil Code 2005, “In cases where it is provided for by law that the forms of civil transactions are conditions for civil transactions to be valid but the parties fail to comply therewith, the Court or another competent state agency shall, at the request of one or all of the parties, compel the parties to comply with the provisions on forms of transactions within a given period of time; past that time limit, if they still fail to comply with such provisions, the transactions shall be invalid.”
It means that if a land use right transfer contract doesn’t comply with the provisions on forms of transactions, it will not be immediately declared invalid by the court when disputes arise. Instead, the Court will issue a decision to force the parties to carry out procedures to complete the contract form. Past that time limit, if the parties still fail to comply with such provisions, the transactions shall be invalid. Thus, though a land use right transfer contract doesn’t comply with the provisions on forms of transactions, it will not be automatically declared invalid and will not necessarily be declared invalid.
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