In real estate transactions, especially in rural or suburban areas, buying and selling real estate by hand (ie handwritten sales contracts, not notarized, not registered) is still common. Many people choose this method because it is quick, cost-effective, or because the land is not eligible for transfer.

However, according to current law, this is a form of transaction that carries great legal risks. Buyers may lose their property, not be protected by law, or get into a long-term dispute. So what does the law stipulate? And how can we prevent it?

1. Is buying and selling by hand legal?

According to Article 502 of the 2015 Civil Code, land use rights transfer contracts must be made in writing and notarized or authenticated.

Specifically, the 2023 Land Law (Article 135) also affirms: the transfer of land use rights, house ownership rights and assets attached to land is only legally effective when notarized, certified according to regulations and registered with the land registration agency.

Therefore, a handwritten contract that is not notarized/certified is considered a violation of the transaction form, leading to the risk of being declared invalid by the court if there is a dispute.

2. Common risks when buying and selling by handwritten paper

a) Transactions may be invalid

When a dispute arises, the court can completely declare a handwritten contract invalid due to a violation of the formality condition (Article 129 of the 2015 Civil Code). In this case, the parties must return to each other what they have received, and the at-fault party must compensate for damages, if any.

This is especially disadvantageous to the buyer, because:

- The seller can deny the transaction and reclaim the land

- The land can be sold to someone else, or transferred in overlapping ways

- The ownership cannot be registered, and the mortgage cannot be obtained

b) The red book cannot be transferred

According to the provisions of Articles 143 and 144 of the 2023 Land Law, only when there is a valid transfer contract, notarized/certified, can the buyer carry out the procedure for registering changes (transferring the name). If there is only a handwritten document, the land registration agency will not accept the application.

This means that the buyer does not have official ownership, leading to the risk of losing everything if the seller mortgages, donates or is forcibly seized.

c) Not protected by law if there is a dispute

In fact, many cases related to real estate originate from handwritten transactions. In these disputes, the buyer is often at a disadvantage because there is no clear legal evidence to protect his rights.

3. How to avoid it?

a) Do not make transactions by hand, even with acquaintances

Buying real estate is a large asset, so you should not rely on trust or acquaintances. Whether it is relatives or friends, having it notarized and clearly transferring the name is always the best way to prevent risks.

b) Carefully check the legality of the property before buying

The buyer needs to ask the seller to provide a Land Use Rights Certificate (red book), and check at the Land Registration Office to know:

- Is the land mortgaged, disputed, or planned?

- Is the seller the legal owner?

c) Complete the transfer procedures

The safe real estate buying and selling process requires all 3 steps:

- Sign the transfer contract at the notary office

- Submit the transfer documents at the land registration office

- Receive the red book in the buyer's name

If the seller does not have enough conditions (the land does not have a red book, has not been divided into plots...), the buyer should delay the transaction or sign a deposit agreement with binding terms on completing legal documents, avoiding ambiguous handwritten transactions.

4. Conclusion

Buying and selling real estate is a major transaction, directly affecting the assets and long-term stability of the people. Therefore, although it saves some costs, buying and selling by hand is a risky choice and often leads to unpredictable legal consequences.

Vietnamese law has created a clear legal corridor to protect the parties in real estate transactions, but only when the parties comply with the regulations. When there is a violation of form, especially not notarization or transfer of ownership, the law will not be able to side with the violator - even if they are the damaged party.

Advice from a lawyer: Before signing any transaction related to real estate, make sure you understand its legal value. Don't just look at the handwritten "piece of paper" - look at the legal consequences behind it.

This article is for reference only, not intended as advice. For more information, please contact: info@barrso.com.