In this article, let’s learn about the two terms “notarization” and “certification“ with PL & Partners Law Firm. How are they similar and different? Should we notarize or certify the real estate sales contract?
Normally, when there are transactions of purchase, sale and transfer of land use rights, the parties will have to notarize or certify the contract. This is a prerequisite, not only help ensure the interests of each party but also to comply with the law.
However, in practice, there are people who do not understand clearly about notarization and certification. Many people still can not distinguish these two terms, some even mistakenly believe that notarization and certification are the same resulting in confusion as to whether their cases should be notarized or certified.
In order to help you better understand the two terms “notarization” and “certification”, thereby determining that you should notarize or certify the real estate sales contract, PL & Partners Law Firm would like to share the following article:
1. WHAT IS NOTARIZATION? WHAT IS CERTIFICATION?
Pursuant to Article 2.1 of the Law on Notary 2014:
| “Notarization of a contract for the transfer of land use rights and ownership of assets attached to the land means the certification of a notary from a organization praticing notarial services of the written contract’s authenticity and legitimacy.” |
Meanwhile, according to Article 2.4 of Decree 23/2015/ND-CP:
| “Contract certification is the certification by a competent authority of the time and place for entering into a contract; capacity for civil act, willingness, signatures or fingerprints of the contracting parties”. |
Thus, it can be seen that both notarization and certification help certify or verify the authenticity of a document or transaction. Simply put, when you have a real estate transaction and it is made into a contract, when it is notarized or certified, this transaction will be confirmed by the authorities as authentic. As a result, it is legal onwards.
Besides, when notarizing or certifying, you have to pay the prescribed charges.
2. DIFFERENCES BETWEEN NOTARIZATION AND CERTIFICATION:
To distinguish between notarization and certification, please refer to the following table:
| Criterias | Notarization | Certifications |
| Authorities | The notary of a organization praticing notarial services (Public Notary Offices) within the province or municipality where the transferred land is located. | The commune-level People’s Committee (commune, ward, township) where the land is located. |
| Responsibilities of performers | The notary shall be liable for the authenticity and legality of the entire contents of the notarized contract or transaction. | Certification’s performers are liable for the formality (time, place of signing; capacity for civil act, willingness, signatures or fingerprints of the contracting parties), not liable for legitimacy of the document. |
| Validity | Notarized contract is enforceable for related parties; in case the obligor fails to perform the obligation, the other party has the right to request the court to handle, unless otherwise agreed upon by the parties to the contract or transaction.
Notarized contracts and transactions have evidentiary value; events and details in the contract or transaction that are notarized are not required to be proved, except in cases where the Court declares them invalid. |
The certified contract has the value of evidence proving the time and place the parties signed the contract; civil act capacity, voluntary will, signatures or fingerprints of the parties to the contract. |
3. SHOULD WE NOTARIZE OR CERTIFY THE REAL ESTATE SALES CONTRACT?
From the above comparison table, we can see that:
For notarization:
- Pros: Has higher legal value.
- Cons: Need to have all valid papers and records. Besides, the notarization charge is higher than that of certification.
For certification:
- Pros: Faster process, less preparation required, lower charges.
- Cons: Can only prove the time and place of entering into the contract without proving the details and events in the contract. Therefore, when a dispute arises, the certified contract is not valid as evidence to prove the details and contents thereof.
Therefore, when transferring real estate or dealing with transactions of great value, the parties should agree to notarize the contract to minimize legal risks.
PL & Partners Law Firm has just shared with you about notarization, certification and that real estate sales contracts should be notarized or certified.
Hope the above information will be useful to you.
If you need further legal assistance, please contact us at:
PL AND PARTNERS LAW FIRM
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Office: Lot 1.16 Viva Riverside, 1472 Vo Van Kiet, Ward 3, District 6, HCMC
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Email: info@pl-partners.vn
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The article is based on the current legal regulations at the time of writing, and it may no longer be valid or relevant at the time you are reading it due to changes of the law. The article, therefore, is seen as reference only. |
