The process of buying land is a significant milestone in the world of real estate. Whether you are planning to build your dream home or invest in a piece of property, it is crucial to understand the various legal documents and agreements involved. One of these essential documents is the Land Purchase Deposit Contract. For more detail, please contact Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline: (+84) 903.419.479

1. What is a land purchase deposit contract?

A land purchase and sale deposit contract is a sub-contract that is essentially a security measure. A deposit contract is a civil transaction, so it needs to meet the basic conditions for the contract to be valid according to Article 117 of the 2015 Civil Code to become legal. It can be declared invalid if: missing one of the conditions, specifically:

• Regarding the subject, the Depositor and the Depositee are people with civil legal capacity and full civil act capacity. The party receiving the deposit must be the subject with land use rights.
• The parties participating in the transaction are completely voluntary, there is no coercion, deception or misunderstanding to establish the transaction.
• The purpose and content of the contract does not violate the prohibition of the law, the purpose of the land sale and deposit contract is to ensure that the parties will perform the land transfer contract later.
• The form of the deposit contract to receive land transfer is made in writing and is not required to be notarized or authenticated.

​Disputes Over Land Purchase And Sale Deposit Contracts

2. Some common situations regarding land purchase deposit contract disputes

• Land purchase and sale deposits are not eligible for transfer.
• Disputes due to the party receiving the deposit does not have the right to sell the land.
• Disputes about rights and obligations between parties.
• Disputes over deposit fines, compensation for damage.

3. Methods of resolving disputes over land purchase and sale deposit contracts

3.1. Negotiate

Negotiating, negotiating and settling disputes on land deposit contracts is the process by which the disputing parties work together to reach an agreement to find a solution to the dispute. This is a method that does not require the assistance or judgment of any third party.

3.2. Reconcile

• Disputing parties can not sit together to negotiate to resolve the issue, thanks to the support of a third party, the rights and interests of the parties will ensure the balance because there is an intermediary.
• The parties will be able to choose a mediator, if not, the leader of the conciliation group will assign the mediator to conduct the mediation to resolve.
• The process and procedures for conciliation of a deposit purchase contract dispute shall comply with the Law on Grassroots Mediation 2013.

​Disputes Over Land Purchase And Sale Deposit Contracts

3.3. Initiate a lawsuit to resolve disputes in Court

• The person whose interests are infringed shall initiate a lawsuit at the competent People Court.
• During a specific period of time, the Court final decision is based on the review and evaluation of relevant documents and evidence and is governed by a system of legal regulations.

4. Order and procedures for initiating a lawsuit to resolve disputes at Court

4.1. Profile components

• A petition for settlement of a land purchase and deposit contract dispute
• Personal papers and household registration book of the plaintiff. If filing a lawsuit under authorization, provide documents showing authorization.
• Personal papers, household registration book of the person being sued. If the defendant is an agency or organization, the operation license of that agency or organization shall be provided.
• Documents and evidence during the contract conclusion process
• Documents and evidence in the dispute resolution process However, for each dispute case, there are different details and events, so the documents that need to be prepared are also different.

4.2. Implementation procedures

- Step 1: Receive  the petition  and accept it

The petitioner submits the file to the Court by: filing directly at the Court, indirectly using the postal service of the shipping company, or submitting the file online through the Court web portal.

Within 03 working days from the date of receipt of the petition, the Chief Justice of the Court will assign a judge to consider the petition. Within 05 working days from the day on which the judge is assigned to consider the petition and issue one of the following decisions:

• Request to amend and supplement the petition
• Carry out procedures for handling the case
• Transfer the lawsuit petition to the competent Court and notify the plaintiff
• Return the petition

Legal basis: Article 191 of the 2015 Civil Procedure Code.

- Step 2: Pay advance court fees and receive notice of case acceptance

• If the litigator has submitted a complete and correct application, the Court will issue a notice of payment of the court fee advance.
• The petitioner must pay the court cost advance at the Civil Judgment Execution Sub-department and return the money collection receipt to the Court within 7 days.
• Upon receiving the receipt from the plaintiff, the judge will proceed to handle the case.
• Within 03 working days after accepting the case, the judge must notify in writing the involved parties of the settlement of the case.
• Within 03 days from the date of accepting the case, the Chief Justice of the Court decides to assign a judge to resolve the case.

Legal basis: Article 196, Article 197 of the 2015 Civil Procedure Code.

- Step 3: Prepare for trial

• Compile case files, determine disputed relationships or litigants status
• Verify and collect evidence
• Apply temporary emergency measures if necessary
• Organize a meeting to check the handover, access, disclosure of evidence and mediation
• Make one of the following decisions: temporary suspension, suspension of resolution or bringing the case to trial.

Legal basis: Article 203 of the 2015 Civil Procedure Code

Pursuant to Clause 1, Article 203 of the 2015 Civil Procedure Code, the time limit for trial preparation is:

• After the case is accepted, the Court must conduct the trial preparation process within 04 months from the date of acceptance.
• If the case is complicated or due to force majeure events or objective obstacles, the Court may decide to extend the time limit for no more than 2 months.

- Step 4: Trial opens first instance and appeal court sessions (if any)

• Through the study of documents and evidence provided by the involved parties or collected by themselves, the Judge will open a first-instance trial according to the statutory procedures.
• In case of disagreement with the Court judgment or decision, the litigant can appeal according to appellate procedures.

5. Authority to resolve disputes over land purchase and sale deposit contracts

Pursuant to Clause 3, Article 26, Point a, Clause 1, Article 35, Clause 1, Article 39 of the 2015 Civil Procedure Code, the People Court of the district where the defendant resides or the plaintiff (if so agreed). In case the involved parties are overseas or need judicial entrustment, they fall under the jurisdiction of the provincial courts (Clause 3, Article 35, point c, Clause 1, Article 37 of the 2015 Civil Procedure Code).

• A typical dispute related to a real estate purchase deposit contract is a request to get the deposit back.
• In case the parties cannot reach an agreement, they can file a lawsuit to ask the Court to declare the cancellation of the deposit contract.

In conclusion, the Land Purchase Deposit Contract plays a vital role in real estate transactions by establishing a commitment between buyer and seller, protecting their interests, and providing a framework for the land purchase process. If you have any questions, please contact immediately Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline - 0903.419.479 for legal advice and support.

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