Time when land transactions take effect

Land with a land use right certificate (SDD, also known as a red book) that is not under dispute, execution of judgment, seizure, etc. is allowed to be transferred.

Because land is a special asset, the transfer of land use rights must comply with the provisions of land law and notarization. That is why there is a difference between the validity of the transfer contract and the validity of the transfer of land use rights.

Signed a contract but don't know if it's effective yet

In urgent need of a large sum of money to settle debts, Mrs. PTG (residing in Dong Tam commune, Dong Nai province) and her husband made a contract to transfer to Mr. HVB (residing in Tan Loi commune, Dong Nai province) 4 sao of land out of a total area of ​​2 hectares of perennial land (with a red book) for 800 million VND. Because Mr. HVB did not have enough money to pay all at once, he only deposited 100 million VND and committed to pay the full amount to buy the land one month later. After that, the two parties went to the nearest notary office to notarize the contract.

Lawyers from the Dong Nai Provincial Bar Association provide legal advice to residents of Dong Tam commune in August 2025. Photo: Doan Phu

After a month, Mr. HVB still did not fulfill his commitment. Therefore, Mrs. PTG and her husband did not transfer the land to him anymore but made a notarized transfer contract to someone else. Because he could not buy the land from Mrs. PTG and her husband because someone else "snatched" it, Mr. HVB met with Mrs. PTG and her husband to demand the return of the deposit he had made. If Mrs. PTG and her husband did not return the deposit, he would hire a lawyer to sue and prevent the transaction between her and someone else.

To limit the complicated situation, Mrs. PTG and her husband agreed to return the 100 million VND deposit to Mr. HVB. However, she and her husband still want to know: Which contract of transferring 4 sao of land between her and Mr. HVB and the later transferee has come into effect, which contract has not?

Because of not knowing when the land transfer contract takes effect and the difference in the time of taking effect between the land transfer contract and the effect of the transfer of land use rights, many people encounter difficulties when they want to terminate the contract. For example, the case of Mr. DVR (residing in Gia Kiem commune, Dong Nai province).

Mr. DVR said: When he had finalized the price, he signed a contract to transfer 150 square ^meters of residential land with a red book to Ms. NTD (residing in Bien Hoa ward, Dong Nai province) and both parties only signed, the contract was notarized. However, after the deadline stated in the contract, the transferee, Ms. NTD, still did not prepare enough money to give him. For that reason, he did not complete the procedure to transfer the name to Ms. NTD.

Mr. DVR wants to know, is the transfer contract between him and Ms. NTD effective yet and does he have the right to cancel the contract when the date of payment and name change procedure comes but Ms. NTD is absent?

Effective from the time of signing or notarization?

Article 401 of the 2015 Civil Code stipulates that a legally concluded contract is effective from the time of conclusion. From the time the contract becomes effective, the parties must perform their rights and obligations to each other as committed.

At the same time, from Article 500 to Article 503 of the 2015 Civil Code, it is stipulated that a contract on land use rights is an agreement between the parties, according to which the land user transfers the land use rights according to the provisions of the Land Law to the other party; the other party exercises the rights and obligations under the contract with the land user. The content of the contract on land use rights must not be contrary to the provisions on the purpose of use, land use term, planning, land use plan and other rights and obligations according to the provisions of the law on land and other provisions of relevant laws.

Contracts on land use rights must be made in writing in a form consistent with the provisions of the 2015 Civil Code, the law on land and other relevant legal provisions. The implementation of contracts on land use rights must follow the correct procedures and formalities as prescribed by the law on land and other relevant legal provisions. The transfer of land use rights shall be effective from the time of registration as prescribed by the Law on Land.

“The land use rights transfer contract is effective at the time of notarization. The land use rights transfer takes effect from the time of registration of changes according to the provisions of the law on land”.

Lawyer NGUYEN DUC, Dong Nai Provincial Bar Association.

In addition, Article 6 of the 2024 Notarization Law clearly stipulates that notarized documents are effective from the time they are signed by the notary and the notary organization stamps the document. Notarized documents are effective for relevant parties and are the basis for the parties involved in the transaction to request competent state agencies to carry out procedures related to the notarized transaction.

Lawyer Nguyen Duc (Dong Nai Province Bar Association) said: Based on the above regulations, the contract to transfer 4 sao of land between Mrs. PTG and Mr. HVB has not yet come into effect because it has not complied with the formal conditions (not notarized or certified). As for the contract between the couple established with the latter, it comes into effect from the time of notarization. The issue of Mr. HVB asking for the deposit back and being accepted by the couple is not related to the issue of whether the land transfer contract comes into effect or not.

In the case of Mr. DVR: The transfer contract between him and Ms. NTD is eligible to take effect. However, because Ms. NTD did not properly perform the obligations agreed upon in the contract, he has the right to request the cancellation of the signed contract. The cancellation of a notarized contract must meet the following conditions: When there is an agreement and written commitment from all the people who participated in that contract. At the same time, the notarization of the cancellation of the notarized contract must be performed at the previous notary organization and conducted by a notary.

When failing to cancel the notarized contract at the notary organization, Mr. DVR has the right to file a lawsuit, requesting the court to cancel the contract because Ms. NTD seriously violated the contractual obligations and did not properly fulfill the obligations committed in the contract.

Doan Phu

Source: https://baodongnai.com.vn/ban-doc/202509/thoi-diem-giao-dich-dat-dai-phat-sinh-hieu-luc-97b2cba/