Tips

The Art of Selling Land: A Step-by-Step Guide to the Conveyancing Process

"In this article, we will guide you through the intricate process of land purchase notarization - an essential step in the real estate buying and selling journey. Our expert knowledge will ensure a seamless and stress-free experience as you navigate this critical aspect of land ownership transfer."

Administrator

4 August, 2024

The process of notarizing real estate transactions is an indispensable step in exercising the right to buy and sell real estate. So, what are the specific procedures and documents required for notarization? Let’s find out below!

Reference:

1Documents for Notarization of Real Estate Sales Contracts

Documents for Notarization of Real Estate Sales Contracts

According to Articles 40 and 41 of the 2014 Notary Law, the following documents are required for the notarization of real estate sales contracts:

For the seller or donor of the real estate:

Land use right certificate (red book)
Identity card, citizen identification card, or passport
Household registration book
Marriage certificate or certificate of marital status
In case the seller or donor authorizes another person to act on their behalf, a power of attorney is required

For the buyer or recipient of the donated real estate:

Household registration book
Identity card, citizen identification card, or passport
Marriage certificate or certificate of marital status
Request for notarization
Declaration (if any)

2Order and Procedures for Notarization of Land Sale

The notary will examine the documents

The notarization process must follow these steps:

Step 1: Receive the notarization request

The individual requesting notarization must have full civil act capacity as prescribed by law. Then, the notary will check the documents in the dossier.

If the dossier is complete and valid, the notary will record it in the notary book. If there are missing documents, the applicant will be asked to supplement them.

Step 2: Perform notarization

There are two cases when performing notarization:

Case 1: If the parties have already prepared a draft contract, the notary must review it. If the contract meets the requirements, proceed to the next step; otherwise, request the parties to make corrections.

Case 2: If the contract is drafted by the notary according to the parties’ request, before certifying the contract, both parties must read and review the entire contract and its information. Then, the seller and the buyer must present the original copies of their documents for verification and sign each page of the contract in the presence of the notary.

Some notes on notarization of real estate sales contracts:

Notarization must be done at agencies within the province or city where the real estate is located.

Notarization can be done at: Notary Office (state-owned) or Notary Office (private). In special cases where the requesting party cannot travel or is elderly or infirm, notarization can be done outside the notary practice organization.

Notarization time: Usually, the notarization time is no more than 2 working days. In case the contract and transaction are more complex, the notarization time can be extended but must not exceed 10 working days.

3Notarization Fee

Notarization fee depends on whether the property is vacant land or built-up land

According to Clause 2, Article 4 of Circular No. 257/2016/TT-BTC, the notarization fee for real estate sales contracts is calculated as follows:

Case 1: If the asset being sold is only land, the notarization fee for the transfer of land use rights is based on the value of the land use right.

Case 2: If the buyer and seller transact land with a house or construction work, the notarization fee is calculated based on the total value of the land use right and the value of assets related to and attached to the land, house, or construction work.

Here are the details of the fees you need to pay when notarizing a real estate sales contract.

For assets with a value of less than VND 50 million, the fee is VND 50,000.

For assets with a value between VND 50 million and VND 100 million, the fee is VND 100,000.

For assets with a value between VND 100 million and VND 1 billion, the fee is 0.1% of the asset value or the value of the contract or transaction.

For assets with a value between VND 1 billion and VND 3 billion, the fee is VND 1 million + 0.06% of the asset value or the value of the contract or transaction exceeding VND 1 billion.

For assets with a value between VND 3 billion and VND 5 billion, the fee is VND 2.2 million + 0.05% of the asset value or the value of the contract or transaction exceeding VND 3 billion.

For assets with a value between VND 5 billion and VND 10 billion, the fee is VND 3.2 million + 0.04% of the asset value or the value of the contract or transaction exceeding VND 5 billion.

For assets with a value between VND 10 billion and VND 100 billion, the fee is VND 5.2 million + 0.03% of the asset value or the value of the contract or transaction exceeding VND 10 billion.

For assets with a value of over VND 100 billion, the fee is VND 32.2 million + 0.02% of the asset value or the value of the contract or transaction exceeding VND 100 billion (the maximum fee is VND 70 million).

The above are the detailed procedures for notarizing real estate transactions. Visit us for more useful information!

Frequently asked questions

The conveyancing process involves several steps, including preparing the contract of sale, conducting a title search, arranging for payment of taxes and fees, and finally, transferring the title to the buyer.

The contract of sale is a crucial document that outlines the terms and conditions of the land sale. It includes details such as the purchase price, deposit amount, settlement date, and any special conditions or inclusions related to the property.

A title search is conducted to ensure that the seller has the legal right to sell the land and that there are no outstanding claims, liens, or encumbrances on the property. It provides a history of the land’s ownership and helps identify any potential issues that may arise during the conveyancing process.

Taxes and fees associated with selling land can vary depending on the location and the specifics of the transaction. Some common taxes and fees include capital gains tax, land transfer tax, legal fees, and real estate agent commissions.

The transfer of the title is typically handled by a conveyancer or a solicitor. They will prepare and lodge the necessary documents with the relevant government authority, such as the land registry or deeds office. Once the transfer is complete, the buyer becomes the new legal owner of the land.

Yes, there are certain risks associated with selling land. These may include issues with the title, boundary disputes, environmental concerns, or problems with access and utilities. It is important to conduct thorough research and due diligence to minimize potential risks.

A real estate agent can assist in marketing and selling the land, providing valuable insights into the local market, and helping to negotiate the best price and terms for the seller. They can also handle the paperwork and facilitate communication between all parties involved.

Preparing your land for sale may involve enhancing its curb appeal, ensuring all necessary permits and approvals are in place, resolving any outstanding issues or disputes, and providing potential buyers with a clear and attractive description of the property.

Common mistakes to avoid include pricing the land incorrectly, not conducting proper due diligence, failing to disclose important information, or rushing into a sale without seeking professional advice. It is important to take your time, seek expert guidance, and ensure a smooth and successful transaction.