Notes to avoid risks when buying a house with a capital contribution contract

(Baonghean.vn) - Many real estate transactions through capital contribution contracts cause losses to the buyer because of loopholes that few people discover. So how can investors avoid the risk of losses when buying a house through this form of capital contribution?

1. Do not invest in real estate with unstable legal status.

One of the risks when investing in real estate often comes from the legal progress of the project. Therefore, when contributing capital to future housing projects, investors must clearly understand what stage the project is in the completion process, what necessary documents are missing, and whether the financial capacity ensures the project's realization.

When signing a capital contribution contract, customers have the right to request that the project's legal documents be complete. The buyer should take the time to learn, listen and even question the investor about all aspects of the product and the steps of the legal procedures. The most important thing is that the investor must be transparent about all possible situations that may occur with the project.

Once these factors are understood, investors have enough basis to analyze and make the most appropriate decisions.

2. Don't invest when the market is hot.

You should not invest when the real estate market is hot, specifically when real estate prices are at their peak. Normally, when prices reach their peak, they will decrease.

At that time, to make a profit, you have to wait until the market stabilizes and increases again. Therefore, the ability to make a profit will be very long and many opportunities will be lost.

On the other hand, if you recklessly invest in large projects while your financial capacity and potential are limited in order to expect quick recovery and quick sale, it is not advisable. When your financial capacity is weak and you do not have enough investment capital, you cannot pay in time for installments, leading to early contract liquidation to pay off debt.

3. Don't expect huge profits

You need to carefully consider product factors such as price, payment schedule, market, liquidity, etc. before investing in any project. You need to stay alert to attractive information provided by the investor.

When signing a capital contribution contract, it is important to note that the golden rule of investing is that high profits often go hand in hand with high risks. Cheap goods often have problems or hidden factors that we have not yet discovered. Therefore, the more attractive the product, the higher the level of caution.

4. Note the compensation terms

The compensation commitment in the capital contribution contract is usually not as high as in the sales contract, often at a symbolic level and capital return, or even no compensation. Therefore, customers need to read the compensation clause carefully and ask the investor to explain each word in detail.

If you notice anything unusual, take the initiative to suggest adjustments, even negotiate a more reasonable compensation level.

5. Regularly monitor project progress

If the investor is behind schedule, he must pay interest on the capital contribution according to the regulations of the State Bank of Vietnam. If the project cannot be implemented, the investor must return the money and should be forced to compensate 2-3 times this amount.

If the two parties cannot reach an agreement, the individual contributing capital can bring the matter to court, because the principle of the contract between the two parties is a civil contract.

6. Purpose of real estate investment

The most important thing is to pay attention to the ultimate purpose when investing in real estate. Do you buy real estate to live in, rent out or buy to store and resell when the price increases... Each different purpose has a different way of choosing a product.

Accordingly, investment money will be held for a long time if investors do not take into account the real estate's value of use.

7. Learn carefully about the investor

Reputation is implicitly understood through the name, brand and history of the establishment and development of the enterprise. If the investor is a new face, the buyer should not skip the step of carefully understanding the business process of the unit they intend to cooperate with.

Normally, units with a history of being involved in scandals and accusations are inevitably skeptical about their credibility. If they are more cautious, customers should not ignore consulting the objective assessment of leading experts before deciding to spend money to avoid unfortunate and unwanted risks.

Ngoc Anh

(Synthetic)