Legal in Real Estate transactions in Vietnam 2021

I. LAW PROVISIONS ON THE BUY/SELL of Real Estate

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The buyer needs to ask the seller to have enough documents to prove the legality of the transaction property

  • Have a certificate of ownership of the house, the right to use land with a red book as prescribed by law.
  • Not to be distraint to test ownership of houses, land use rights (red books) as prescribed by law on judgments or to comply with administrative decisions of competent State agencies
  • No ownership dispute
  • Land is still in use
Real Estate 2021 Updated Law In Vietnam Scaled
Real Estate 2021 Updated Law In Vietnam Scaled

Real Estate 2021 Updated Law In Vietnam

II . LEGAL CHECK

  • Check the status of the real estate or the red book / pink book, planning with the commune / ward cadastral officer or the commune / ward People’s Committee where the real estate is located.
  • Check the red book / pink book, planning with the staff of the natural resources and environment department of the district / district where the real estate is located.

III. 3 STEPS IN THE REAL ESTATE BUY/SELL PROCESS

  1. Closing the transaction and deposit The two parties close the sale and depending on the negotiation of the two parties to offer an appropriate deposit, usually not more than 10% of the value of that real estate.
  2. Sign the sale and purchase contract and notarize
    • – For buying houses/apartments that are formed in the future from investors, the buyer will sign a sale contract with the investor and will pay according to the schedule given by the investor. Taxes are included in the total selling price. Red number ( pink number ) will be issued after the house is completed .
    • – For the purchase and sale of real estate, private houses between two individuals, after making a deposit for about 1 week or depending on negotiation between the two parties, the sale contract will be signed and notarized at the notary office and the buyer will pay 100% of the value of the property. Real estate to the seller after deducting the deposit or can be paid depending on the negotiation between the two parties.
  3. Taxes and Fees
    •  • Normally, the buyer will pay a registration tax of 0.5% of the property value
    • • The seller will pay personal income tax of 2%, in case the real estate is the only one, this tax is exempt.
    • • Some other fees such as notary fees, appraisal fees, cadastral fees (if any).

IV. CONTRACT of buying / selling real estate

7 Points not to be missed in the sale and purchase contract to avoid any disputes / litigation and minimize all risks during real estate transactions

– BUY PRICE

It is necessary to specify the purchase price according to the agreement

– AREA OF BUYING

Specify the area of ​​purchase because sometimes the actual construction area may include unlicensed area

– DEPOSIT

Enter the exact amount of the deposit deposited for the property

– BUILD

If it is a house to be formed in the future and a house in the project, it is necessary to check the regulations on how long the construction period is, whether it is self-built, the construction cost if any and clearly stated in the contract as well. as the basis for you to calculate the budget

– HANDLING DAY

It is necessary to specify the handover date on the contract and the corresponding terms if the handover is delayed

– PAYMENT METHOD AND PROGRESS

Should pay via bank , learn and negotiate the payment schedule to suit your financial situation .

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