Do lease purchase agreements have to be notarized or certified in Vietnam?

Do lease purchase agreements have to be notarized or certified in Vietnam?

Real estate trading agreement at Clause 2, Article 17 of the Law on Real Estate Business 2014 shall:

1. Types of real estate trading agreement:

a) Building sale agreement;

b) Building rent agreement;

c) Lease purchase agreement;

d) Land transfer, lease, and sublease agreement;

dd) Agreement on transfer of all or a portion of real estate project.

2. A real estate trading agreement must be made in writing. The agreement notarizing or authenticating shall be agreed by contracting parties, excluding building sale or lease purchase agreements or land transfer agreements concluded by households and individuals prescribed in Clause 2 Article 10 of this Law.

3. The effective date of the agreement shall be agreed and stated in the agreement by contracting parties. If the agreement has been notarized or authenticated, the effective date of the agreement is the notarizing or authenticating date. If the contracting parties have not agreed or the agreement has been not notarized or authenticated, the effective date is the date on which the agreement is signed.

4. The Government shall stipulate types of real estate trading agreement.

Clause 2, Article 10 of the Law on Real Estate Business 2014 provides:

1. Any organizations or individuals wish to conduct real estate trading shall set up enterprises or cooperatives (hereinafter referred to as enterprises) and have legal capital not smaller than VND 20 billion, excluding cases prescribed in Clause 2 of this Article.

2. Any organizations, households and individuals who conduct small-scale or irregular transactions of real estate sale, transfer, lease-out, and lease purchase shall not be required to set up enterprises, but they shall make tax declaration as prescribed.

3. The Government shall provide guidance on this Article.

Thus, in the real estate business, lease purchase agreement does not have to be notarized and certified in all cases in Vietnam. If it is not in the case of Clause 2, Article 10, it is not required (as agreed by the two parties).

Best Regards!