When drafting a land use rights transfer contract, the parties need to pay attention to and specify provisions on the rights and obligations of each party. These provisions serve as a basis for one party to compel the other party to fulfil their obligations, impose penalties for non-compliance, and seek compensation for damages caused by failure to fulfil obligations, etc. In this article, TNTP will present some content that the parties can refer to when specifying these provisions in the contract.
1. Rights and obligations of the transferor
• Rights of the transferor
+ Request the transferee to pay off the total amount on schedule with the method under the contract;
+ Request the transferee to receive the land on the schedule specified in the contract;
+ Request the transferee to pay compensation for damage at the transferee’s fault;
+ Do not hand over the land if the payment in full has not been given, unless otherwise agreed;
+ Other rights agreed upon by the parties (if any) (these agreements may not go against the law and morality).
• Obligations of the transferor
+ Provide sufficient and truthful information about the land and take responsibility for supplied information;
+ Transfer the proper area, location, and condition of land as specified in the contract to the transferee;
+ Register the land as prescribed in law on land and give the Certificate to the transferee, except that the transferee requests in writing that it shall conduct the procedures for the Certificate by itself;
+ Pay compensation for damage at its faults;
+ Fulfil financial obligations to the State as prescribed in regulations of law;
+ Other rights agreed upon by the parties (if any) (these agreements may not go against the law and morality).
2. Rights and obligations of the transferee
• Rights of the transferee
+ Request the transferor to provide sufficient and truthful information about the land;
+ Request the transferor to transfer the proper area, location, and condition of land as specified in the agreement to the transferee;
+ Request the transferor to complete the procedures as per the land law and give them the Certificate;
+ Request the transferor to pay compensation for damage at the transferor’s fault;
+ Acquire land ownership from the date on which the land is transferred by the transferor,
+ Other rights agreed upon by the parties (if any) (these agreements may not go against the law and morality).
• Obligations of the transferee
+ Pay off the total amount by the deadline to the transferor with the method under the contract;
+ Pay compensation for damage at its faults;
+ Construct building in accordance with regulations of law and the approved planning;
+ Fulfill financial obligations to the State as prescribed in regulations of law;
+ Other obligations agreed upon by the parties (if any) (these agreements may not go against the law and morality).
The above is the method for drafting clauses on the rights and obligations of the parties in the land use rights transfer contract. If there are any issues for discussion, please contact TNTP for timely support.
Sincerely,
