Solutions against common legal risks to real estate purchases (Part I)

Money may not buy real estate. Legal risks to the purchase of real estate abound despite the abundance of opportunities to buy houses in the currently progressive market economy. Such risks not only hinder real estate purchases but also exhaust buyers’ finances.
I, therefore, post the “solutions against common legal risks to the purchase of real estate” and expect experienced legal specialists to discuss and share their experience in handling various circumstances for everyone to avoid such risks.
1. Seller of a property takes deposits from several buyers
At this vital stage of a real estate purchase process, risks are inevitable. A seller in dire need of money willfully puts his property for sale at a moderate price and takes deposits from every prospective buyer.
Solution:  The sole measure in this circumstance, for protecting a buyer’s rights, may be a deposit contract with the seller, which is notarized to validate its legality.
For reducing expenses and as being afraid of involving a notary office, seller and buyer often acknowledge the deposit on a handwritten piece of paper, making it difficult to petition a court for settling a dispute or fraud.

2. Seller binds buyer to infeasible conditions after the deposit is made
For example, the buyer is given zero cooperation in completing the formalities for land use right certification or full payment is demanded or the process of notarization for transfer of the certificate of land use right (and house ownership) is on 1-day or 2-day delay.
Precaution: Buyer must be in senses when transacting a property purchase. A deposit contract, as stated above, should come into existence upon the making of the deposit. Moreover, the process of notarization and payments should proceed in a bank to uphold safety.
Spend a little more on the safety of transactions.
3. Documents shown upon the sale of a property are false
It is most common that a non-owning person abuses the property owner's confidence or intimacy to borrow and forge real estate documents. Identity papers are then fabricated to transact the sale of the property.
The owner is usually not aware or may be conscious of such event but colludes with the person transacting the sale to swindle a buyer out of money.
In another situation, the owner transacts the sale with the unknowingly false documents in his possession. The authentic documents are mortgaged in a bank.
Precaution: An optimal solution against this circumstance, which is a nuisance to the notaries certifying property sale contracts, is not yet available. Thus, I look forward to the opinions of experienced participants in the forum of Dan Luat.

* Legal Documents:
- Law No. 65/2014/QH13 dated November 25, 2014, on housing
- Decree of Government No. 101/2015/ND-CP on renovation and re-construction of apartment buildings
- Circular No. 21/2016/TT-BXD guilding the implementation of a number of articles of the Government’s Decree No. 101/2015/ND-CP on renovation and re-construction of apartment buildings
- Decree of Government No. 99/2015/ND-CP on guidelines for The Law on Housing
- Circular No. 19/2016/TT-BXD guidelines for implementation of some content of the Law on housing and the Government's Decree No. 99/2015/ND-CP
- Circular No. 26/2015/TT-NHNN guidelines for procedures and formalities for mortgaging and releasing mortgage of housing construction projects and off-the-plan residences
- Joint Circular No. 09/2016/TTLT-BTP-BTNMT instructions on registration of mortgaging of land use rights, properties on land
- Circular No. 02/2016/TT-BXD  regulation on management and use of apartment buildings

Xem thêm: Solutions against common legal risks to real estate purchases (Part II)
                  Những rủi ro pháp lý thường gặp khi mua nhà đất và cách xử lý

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