Abolishing notarization in real estate transactions: Need a roadmap to avoid risks

(Chinhphu.vn) - The proposal to abolish notarization of contracts and confirmation of marital status when trading in real estate and vehicles is a breakthrough for the use of electronic data in civil transactions. However, lawyers are concerned that implementing it too quickly could create "legal gaps" and believe that a roadmap is needed to avoid risks.

The proposal to abolish notarization of contracts and confirmation of marital status when trading in real estate and vehicles is a breakthrough for the use of electronic data in civil transactions. Illustrative photo

Strong administrative reform steps

The Ministry of Public Security is seeking comments on a draft Resolution on eliminating notarization procedures and confirmation of marital status in transactions of buying, selling, and transferring land use rights and means of transport in cases where data has been digitized, cleaned, and interconnected.

The goal is to cut down on procedures, save time and costs for people and businesses – This is a step in line with the spirit of administrative reform and national digital transformation.

Transactions regulated by this Resolution include: Transactions of purchase, sale, transfer, donation, mortgage, inheritance of land use rights and assets attached to land; transactions of purchase, sale, transfer, donation, registration of ownership of means of transport.

This means that when people carry out the above transactions, they will not need to notarize contracts, confirm their marital status or present copies of personal documents. Instead, electronic data is collected and authenticated from national databases that have legal value in place of paper documents. People do not have to re-submit documents already in the digital data system.

The officer handling the procedure is responsible for looking it up on the system. Electronic transaction contracts are signed with digital signatures or level 2 identification accounts, which have the same legal value as notarized contracts. However, people still have the right to voluntarily request notarization and certification if they want...

Many experts consider this a strong administrative reform step, helping to cut down on procedures, saving costs and time for people. When national data on population, land, vehicle registration, and assets are connected, the system will increase transparency and prevent document forgery, moving towards digital government and comprehensive online public services.

Lawyer Hoang Xuan Quang, Director of KCF Law Firm - Hanoi Bar Association. Photo: NVCC

Real estate transactions should be considered and handled with caution.

However, for real estate transactions - a field with large asset value, there are many potential legal risks and require high caution. From a legal perspective, Lawyer Hoang Xuan Quang, Director of KCF Law Firm - Hanoi Bar Association, said that notarization is the safety control step in the chain of civil transactions.

Mr. Quang analyzed that notaries not only confirm the signature or the validity of the documents but also check the civil capacity, evaluate the voluntariness and true will of the parties. "Machines can compare data but cannot understand human will, cannot recognize when a person is forced or deceived in the process of signing a contract. That is professional capacity, a social sense that only humans have," Mr. Quang said.

This lawyer also said that if notarization is abolished, it is necessary to clearly define which agency will be responsible when disputes or damages arise due to data errors. Currently, the draft Resolution does not specifically regulate this issue, causing people to fall into a situation of "not knowing who to turn to" when transactions encounter risks.

Many notaries also expressed concern that digital databases, no matter how modern, cannot replace the role of notaries in checking, consulting and legal supervision. Mr. Han Van Vinh, a notary in Phu Tho, said: "In reality, we have encountered many cases where the seller has had their documents borrowed by others, or has been tricked into signing fake contracts to conceal the loan transaction. If not for a notary to detect it in time, the consequences will be very difficult to overcome. Computers can only read data, but cannot read people."

According to Mr. Vinh, notaries not only certify but also play the role of “preventive judges” – advising people about legal consequences, reminding them of unfavorable terms and helping parties avoid violating the law. This is a function that an automated data system cannot undertake.

Mr. Han Van Vinh, notary in Phu Tho. Photo: NVCC

He also raised the question: "If the contract is confirmed completely online, who will store the original, who will provide a copy when the prosecution agency or the people need it as evidence? Which agency is responsible if the system is attacked or the data is modified?"

Another point that many notaries emphasized was the responsibility for compensation. With a notarized contract, if the notary violates the procedure, causing damage to the parties, they are forced to compensate. Meanwhile, the responsibility mechanism of the data agency or electronic authentication platform in case of errors is still not clearly defined.

From the perspective of the people, Ms. Nguyen Minh Thu, 51 years old, living in Chu Van An ward, Hai Phong city shared: "I always transfer land through notarization. Because when there is a dispute, the notarized contract is evidence to protect me. If I do not use notarization and only rely on data, I am worried that when there is a problem, I will not know who will be responsible."

According to Ms. Thu, most people, especially in rural areas, are not familiar with the electronic transaction process. Meanwhile, signing contracts online requires a certain level of technology and legal knowledge. "Notaries not only do the procedures, they also explain to us our rights and obligations. Machines cannot do that," Ms. Thu said.

Abolishing mandatory notarization may be a long-term goal, when the national database is truly complete, information is absolutely authenticated and there is a clear accountability mechanism. However, in the current conditions, when data is still lacking in synchronization, the level of legal education is not high, implementation needs to be carefully considered, have a roadmap, fully assess the impact and only be deployed when the legal and technical infrastructure is ready...

Dieu Anh

Source: https://baochinhphu.vn/bo-cong-chung-khi-giao-dich-nha-dat-can-co-lo-trinh-de-tranh-rui-ro-102251020180005503.htm