In practice, many disputes related to land use rights transfer contracts have arisen because one of the parties provided misleading information for the other party to sign the contract. Some examples include the transferor not being the actual land user, the land plot having multiple users but the transferor concealing this fact, the land use rights being in dispute, or being encumbered for enforcement, etc. When these situations occur, the party receiving inaccurate information faces significant risks. To minimize these risks, the parties should specify the commitments of the parties when entering into the contract. The commitment provisions will serve as a basis for holding the breaching party accountable, including rectifying the breach, compensating for damages, facing penalties, contract termination, etc. In the following article, TNTP will present some content that the parties can refer to stipulating the commitment provisions of the parties in the transfer contract.
1. Commitment of the transferor
The transferee may require the transferor to commit to the following:
+ The information about personal identity and the land plot stated in the contract is true;
+ The land use right of this contract was not transferred to another person or prohibited from the transfer as prescribed by law;
+ The land plot falls within the scope of land use rights transfer as stipulated by the law;
+ The land use rights are not in dispute and not encumbered for enforcement;
+ The contract is entered into voluntarily, without deception or coercion;
+ The transferor must fulfil all the agreements in the contract.
2. Commitment of the transferee
The transferor may require the transferee to commit to the following:
+ The information about personal identity stated in the contract is true;
+ The transferee has been provided by the transferor with copies of necessary documents and information related to the land use right, the transferee has carefully read and understood the terms and conditions of this contract and Appendixes hereto. The transferee has investigated all issues that the transferee deems necessary to check the accuracy of such documents and information;
+ The transfer amount paid by the transferee to the transferor under this contract is legal without any dispute with the third party. The transferor shall not be liable for any dispute over the amount that the transferee has paid to the transferor under this contract. In the event of a dispute over the transfer amount of this land use right, this contract will still be valid for both parties;
+ The transferee must provide necessary documents when requested by the transferor by the law to carry out the procedures for granting the Certificate to the transferee;
+ The contract is entered into voluntarily, without deception or coercion;
+ The transferee must fulfil all the agreements in the contract.
The above is the method of drafting the commitment provisions of the parties in the land use rights transfer contract. In case of any issues that need to be discussed, please contact TNTP for timely support.
Sincerely,
