Consulting on commercial contracts in the real estate sector

Consulting on commercial contracts in the real estate sector plays an important role in every real estate transaction. Mastering knowledge of real estate commercial contracts helps customers avoid risks, protect rights and optimize profits. This article will provide customers with an overview of commercial contracts in the real estate sector, thereby helping customers make wise and effective decisions.

The importance of commercial contracts in the real estate sector

A real estate commercial contract is a binding document between the parties involved in the transaction, clearly defining the rights and obligations of each party. Below are some typical contract roles:

• Contracts help protect the interests of parties, especially in complex and high-value transactions.
• Contracts help minimize risks that arise during transactions, such as disputes and contract violations.
• Contracts help create transparency and clarity in agreement terms, avoiding misunderstandings and arguments.
• The contract demonstrates the professionalism and reputation of the parties involved, enhancing trust in transactions.

Common types of commercial contracts in the real estate sector

Types of commercial contracts in the real estate sector include:

• Housing purchase and sale contract, lease purchase contract;
• Housing lease contract;
• Purchase and sale contracts, lease-purchase contracts for construction projects, construction floor areas in construction projects that serve the purpose of tourism and accommodation;
• Lease contract for construction works, construction floor area in construction works with functions serving tourism and accommodation purposes;
• Purchase and sale contracts, lease-purchase contracts for construction projects, construction floor areas in construction projects that serve commercial purposes;
• Contract to lease a construction project, the construction floor area in a construction project that serves commercial purposes;
• Contract for transfer of land use rights with technical infrastructure in real estate projects;
• Lease contracts, sublease contracts of land use rights with technical infrastructure in real estate projects;
• Contract for transfer of entire real estate project;
• Contract to transfer part of real estate project;
• Transfer contract, purchase and sale contract, lease purchase contract for housing and construction works.

Types of real estate service business contracts

• Real estate trading floor service contract;
• Real estate brokerage service contract;
• Real estate consulting service contract;
• Real estate management service contract.

Basic contents of commercial contracts in the real estate sector

A real estate commercial contract must have all of the following basic contents:

• Information about the parties: Names, addresses, contact information of the parties participating in the contract.
• Real estate description: Details about the type of real estate (house, land, apartment…), area, location, code number, boundaries and condition of the real estate.
• Price and payment method: Value of real estate, payment method (one-time payment, installments, bank loan…), payment term.
• Rights and obligations of the parties: Clearly define the rights and obligations of each party in implementing the contract.
• Clause on breach of contract: Regulations on the responsibilities of the parties when violating the contract, penalties for violations.
• Dispute resolution clause: Dispute resolution method (negotiation, conciliation, lawsuit in court).
• Contract validity: The date the contract takes effect.

In addition, depending on the type of contract and transaction purpose, there may be additional terms such as guarantees, mortgages, leases, sales, and project transfers. Contract content must comply with real estate, civil and commercial laws.

Common risks and how to avoid them in commercial real estate activities

Legal risks:

• Risk of encountering fake documents related to real estate (ownership certificates, construction permits…).
• Risk of dealing with fake entities, without ownership or right to dispose of real estate.
• Solution: Thoroughly check documents, verify information about real estate and related parties. Use notary and authentication services to ensure the legality of the transaction.

Planning risks:

• Real estate risks are affected by changes in state planning (land use planning, project planning…).
• Solution: Learn carefully about the area’s planning, and you can directly contact the authorities to understand the status of the real estate.

Risk of dispute:

• Real estate risks include ownership disputes between many parties.
• Real estate risks are prohibited from being mortgaged or mortgaged to a third party.
• The risk that a real estate asset is sold to many different buyers.
• Solution: Carefully check the legal history of the real estate, ask the seller to provide all relevant documents. Learn about potential disputes related to real estate.

Handover risks:

• The seller is unable to hand over the real estate as agreed.
• Real estate handover not on time as committed.
• The property handed over is not in accordance with the agreement in the contract (area, quality…).
• Solution: Clear provisions on handover terms in the contract, including time, handover conditions, and asset quality.

Payment risks:

• The buyer does not pay or does not pay fully as agreed.
• The seller does not hand over the real estate after the buyer has paid.
• Solution: Use safe payment methods, it is necessary to stipulate terms of liability in case of payment violations.

Some other risks: Risks in authorized trading, tax risks, risks in construction quality, risks in surrounding infrastructure conditions, risks in the surrounding social environment, risks in contract content.

Reputable consulting services for commercial contracts in the real estate sector

Long Phan provides reputable consulting services for commercial contracts in the real estate sector. We have a team of experienced experts, knowledgeable about real estate law, ready to assist customers in the following issues:

• Consulting on valid conditions of the contract;
• Consulting on appropriate types of real estate commercial contracts;
• Consulting on indispensable terms in contracts;
• Drafting and reviewing commercial real estate contracts;
• Evaluate and analyze risks in contracts and preventative measures;
• Consulting, supporting negotiations and contract negotiations;
• Consulting on resolving contract disputes (if any);
• Consulting and answering other related issues.

Commercial contracts in the real estate sector are an indispensable part of real estate transactions. Understanding and complying with regulations on contracts will help customers minimize risks and protect their rights. If you have any questions related to real estate commercial contracts, please contact Long Phan immediately via the hotline: 0906735386 for timely advice and support.