Vietnam: What are the requirements for houses regarding transactions in housing sale, lease purchase, gifting, mortgage, or capital contribution?
What are the requirements for houses regarding transactions in housing sale, lease purchase, gifting, mortgage, or capital contribution?
Pursuant to Clause 1, Article 118 of the 2014 Law on Housing in Vietnam stipulating as follows:
Requirements applied to houses entered into transactions
1. Any house regarding transactions in housing sale, lease purchase, gifting, mortgage, or capital contribution shall meet the requirements below:
a) There is the Certificate as prescribed, except for cases prescribed in Clause 2 of this Article;
b) There is no dispute, complaint, or proceedings for homeownership; the term of homeownership has not expired if the house is under a term contract on housing;
c) The house is not distrained;
d) There is no decision on land revocation, notification of housing clearance or demolishment issued by the competent agency.
The requirements prescribed in Point b and c of this Clause shall not apply to transactions in off-the-plan housing sale or lease purchase.
Thus, the requirements for houses regarding transactions in housing sale, lease purchase, gifting, mortgage, or capital contribution are as follows:
- There is the Certificate as prescribed, except for cases prescribed in Clause 2 Article 118 of the 2014 Law on Housing in Vietnam;
- There is no dispute, complaint, or proceedings for homeownership; the term of homeownership has not expired if the house is under a term contract on housing;
- The house is not distrained;
- There is no decision on land revocation, notification of housing clearance or demolishment issued by the competent agency.
The requirements prescribed in Point b and c Clause 1 Article 118 of the 2014 Law on Housing in Vietnam shall not apply to transactions in off-the-plan housing sale or lease purchase.
Vietnam: What are the requirements for houses regarding transactions in housing sale, lease purchase, gifting, mortgage, or capital contribution?
Which transactions in housing are not required the Certificate?
This content is specified in Clause 2, Article 118 of the 2014 Law on Housing in Vietnam as follows:
Requirements applied to houses entered into transactions
...
2. The following transactions in housing are not required the Certificate:
a) Transactions in off-the-plan housing sale or mortgage;
b) Transactions in house of gratitude gifting;
c) Transactions in state-owned housing sale or lease purchase; social housing or non-state-owned housing serving the relocation sale or lease purchase; housing sale prescribed in Clause 4 Article 62 in this Law;
d) Transactions in housing lease, lending, permission for stay, management authorization;
dd) Transactions in housing inheritance;
e) Transactions in transfer of agreement on commercial housing which is under residential construction projects including the case in which the house is received from the investor but the application for the Certificate of that house has not sent to the competent agency.
Thus, the following transactions in housing are not required the Certificate:
- Transactions in off-the-plan housing sale or mortgage;
- Transactions in house of gratitude gifting;
- Transactions in state-owned housing sale or lease purchase; social housing or non-state-owned housing serving the relocation sale or lease purchase; housing sale prescribed in Clause 4 Article 62 in the 2014 Law on Housing in Vietnam;
- Transactions in housing lease, lending, permission for stay, management authorization;
- Transactions in housing inheritance;
- Transactions in transfer of agreement on commercial housing which is under residential construction projects including the case in which the house is received from the investor but the application for the Certificate of that house has not sent to the competent agency.
However, the above cases must have papers proving the housing conditions participating in the transaction as prescribed in Article 72 of Decree No. 99/2015/ND-CP.
What are the requirements pertaining to parties in the housing transactions?
Pursuant to Article 119 of the 2014 Law on Housing in Vietnam stipulating as follows:
- Any entity who sells, leases, leases and sells housing, transfers agreements on commercial housing sale, gives, exchanges, bequeaths, mortgages, lends, permit to stay in housing, or authorizes housing management must satisfy the following requirements:
+ He/she is the homeowner, or the person permitted and authorized by the homeowner to enter into housing as prescribed in this Law and law on civil; if the agreement of commercial housing is transferred, he must be the buyer for housing of the investor or the transferee of the agreement on housing sale;
+ If the entity is a person, he must have full civil capacity to enter into transactions in housing as prescribed in law on civil; if the entity is an organization, it must have legal personality, except for the organization giving house of gratitude.
- If the entity who buys, rents, rents and purchases housing, or receives agreements on commercial housing sale, receives housing exchange, gives, inherit housing, receives housing as capital contribution or mortgage, borrows, or stays in housing, or is authorized to manage housing is a person, he/she must satisfy following requirements:
+ If the entity is a Vietnamese person, he/she must have full civil capacity to enter into transactions in housing as prescribed in law on civil and he/she is not required to register permanent residence in the place where the house under transactions is located;
+ If the entity is a foreign person, or an oversea Vietnamese, he/she must have full civil capacity to enter into transactions in housing as prescribed in Vietnamese law, qualify for the homeownership in Vietnam as prescribed in this Law and he/she is not required to register temporary or permanent residence in the place where the house under transactions is located.
- If the entity who buys, rents, rents and purchases housing, or receives agreements on commercial housing sale, receives housing exchange, gives, inherit housing, receives housing as capital contribution or mortgage, or is authorized to manage housing is an organization, it must have legal personality regardless of place where it sets up or registers business;
If the entity is a foreign organization, it must qualify for the homeownership in Vietnam as prescribed in this Law; if it is authorized to manage housing, it must provide real estate services and run business in Vietnam as prescribed in law on real estate trading.
LawNet