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There are many organizations and individuals investing in the tourism industry, transferring hotel ownership in Nha Trang. However, quite a few investors have suffered significant risks and losses due to a lack of understanding of the legal aspects. This article aims to provide investors with the necessary procedures for transferring hotel ownership and protecting the buyer’s rights to the fullest extent.
Check the legal status of the hotel in Nha Trang
Before undertaking any legal procedures related to the transfer of a hotel in Nha Trang, investors need to check the legal status of the hotel they intend to purchase. The more information an investor has about the hotel, the more control they will have during the negotiation process and can avoid risks.
Some basic content that needs to be checked includes:
- Land type and land use duration.
- Land use planning.
- Rights to use the land and assets attached to the land, whether they are currently mortgaged or guaranteed for any organization or individual.
- Assets owned by the hotel, including intellectual property rights (brand, copyrights, etc.).
- Debts of the hotel.
- Contracts that the hotel has signed with partners and customers but has not yet completed.
- Staffing situation and the hotel’s obligations to employees under signed contracts.
- Financial obligations to the state that the hotel has not fulfilled.
Determine the appropriate selling price for transferring the hotel in Nha Trang
Based on the statistics regarding the assets of the hotel, investors should hire a professional valuation organization to accurately determine the hotel’s value. This provides a solid foundation for negotiation and pricing decisions with the seller.
In many cases, after completing the purchase and taking over the hotel, buyers discover that the seller has inflated the value of the hotel’s assets, leaving them with little recourse. Therefore, having a professional valuation organization assist the buyer in accurately determining the market value of the hotel is crucial and necessary.
Although the buyer will incur a significant cost for hiring a valuation organization, this cost is minimal compared to the risks and losses the buyer may face if deceived by the seller.
Review the deposit agreements and the hotel transfer contracts
The most crucial step in the entire hotel transfer process in Nha Trang is reviewing and signing the deposit agreement and the hotel transfer contract with the seller. To ensure the best protection of their legal rights and to avoid unfavorable and unfair terms that the counterpart may include in the contract, the buyer needs to have a lawyer consult and assist in reviewing the contract’s contents before signing.
Complete the procedure to register ownership rights of the hotel in Vietnam
The final step after all parties have signed the hotel transfer contract is for the buyer to complete the procedure to register changes and update ownership rights of the hotel from the seller to the buyer in the land use right certificate, house ownership right, and other property attached to the land.
The seller can either perform these procedures themselves or hire a service provider within the city of Nha Trang to assist with these processes.
The buyer should retain a portion of the transfer amount to be paid to the seller only after the registration and ownership transfer procedures are completed. This approach ensures that the seller has a greater responsibility to provide the necessary documents to help the buyer quickly complete the land registration process.
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DCNH LAW
Address: 38B Tran Nhat Duat, Phuoc Hoa ward, Nha Trang city, Khanh Hoa province, Vietnam.
Phone: (+84) 343320223 – 974278893
Email: [email protected]