Real estate is one of the biggest properties that many people can accumulate for a long time to buy. However, buying or selling real estate always has many potential risks, especially for buyers. Therefore, fully understanding and identifying risks of buying or selling real estate is the best way to get appropriate risk reduction measures.
Please note that this article only analyzes the risks from the perspective of the real estate buyers, does not include the real estate projects, and only gives a summary analysis of the risks that may arise. For the in-depth and detailed analysis of each risk, please follow the next articles of Tran Ngoc Thien.
For risks related to real estate sellers, please refer to the article: "Risks that "the seller" should be aware of when selling real estate".
Risk 1: The contract is void
Cause 1: The real estate seller is not competent to sign the contract
There are many cases that a contract is void because of this cause. Among them, the most common cases are:
- Real estate is an inheritance, but there are not all heirs signing the contract.
- Real estate is the common property of husband and wife, but there is only husband or wife signing the contract.
- Real estate is the property of the parents, but the children sign the contract even though there is no written authorization.
Solution: Identify fully who is authorized to sign the real estate contract.
Cause 2: Real estate contract is not notarized or authenticated
According to the laws on land and housing, in most cases, the real estate contract must be notarized or authenticated, except for some special cases, and this is a requirement to be issued or registered for land changes in a Real Estate Certificate.
You can refer to the following article: “Is the non-notarized real estate contract void?”
Solution: Always notarize or authenticate the real estate contract in accordance with the law.
Note: A certified written minute of real estate contract made by bailiff is not considered as a notarized or authenticated contract.
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