Can a house that is distrained be sold in Vietnam? When buying an off-the-plan house, is contract required to be notarized in Vietnam?

Can a house that is distrained be sold in Vietnam?

Can a house that is distrained be sold? I have a house in the center of District 1. Due to bank debt, my house is being distrained. I would like to ask, can I sell this house to someone else?

Reply:

Pursuant to Article 9 of the 2014 Real Estate Business Law, there are regulations on requirements in terms of real estate to be put on the market as follows:

1. A building to be put on the market shall satisfy the following requirements:

a) The ownership of the building on land is registered in the Certificate of land use right (hereinafter referred to as Certificate of land). Regarding an off-the-plan building in the real estate project, it is only required to have the Certificate of land as prescribed in regulations of law on land.

b) There is no dispute about the land and ownership of the building on land.

c) The building is not distrained.

2. Types of land permitted to be put on the market shall satisfy the following requirements:

a) There are Certificates of land as prescribed in regulations of law on land.

 b) There is no dispute about the land.

c) The land is not distrained;

d) The land use term is still unexpired.

Thus, based on the current law in Vietnam, the house you are living in is not real estate that can be put into trading.

Can a house that is distrained be sold in Vietnam? When buying an off-the-plan house, is contract required to be notarized in Vietnam? (Image from the Internet)

In what form can foreign companies conduct real estate trading in Vietnam?

In what form can foreign companies conduct real estate trading in Vietnam? As far as I know, 100% foreign companies in Vietnam are only allowed to do real estate trading in certain forms. So, can you tell me specifically in what form foreign companies can conduct real estate trading? Hope to receive a response from you soon. Thank you very much!

Reply:

According to the provisions of Clause 3, Article 11 of the Law on Real Estate Business 2014, foreign-invested enterprises may conduct real estate trading in the following forms:

a) Forms prescribed in Point b, d, h Clause 1 and Point b Clause 2 of this Article;

+ Rent buildings for sublease;

+ Build houses on the land which is leased by the State for lease; build houses or constructions other than houses on such land for sale, for lease, or for lease purchase;

+ Receive total or a part of real estate project from investors to build buildings on it for sale, for lease, or for lease purchase;

+ Build houses on land which is allocated by the State for sale, for lease, or for lease purchase;

b) Build buildings on land which is leased out or transferred in industrial parks, industrial complexes, export-processing zones, hi-tech zones, or economic zone for trading for the proper land use.

Thus, according to the above regulations in Vietnam, foreign companies are only allowed to conduct real estate trading in the 5 forms mentioned above. Foreign companies are not allowed to conduct real estate trading in any form other than the 5 forms mentioned above.

When buying an off-the-plan house, is contract required to be notarized in Vietnam? 

When buying an off-the-plan house, is contract required to be notarized in Vietnam?  My husband and I are planning to buy a house from a friend. That house is under construction, so let me ask: If I buy that house, will I need to notarize at a notary practice organization?

Reply:

Clause 1, Article 59 of the Law on Real Estate Business 2014 has regulations transfer of off-the-plan building sale or lease purchase agreement as follows:

1. The buyer or the lessee may transfer the off-the-plan building sale or lease purchase agreement if the application for the Certificate of land, ownership of land and property on land granted to the buyer or the lessee has been not sent to competent agencies. The transfer of off-the-plan building sale or lease purchase agreement must be made in writing and certified by the investor.

Besides, Article 122 of the 2014 Housing Law also stipulates:

1. Regarding agreements on housing sale, giving, exchange, capital contribution, mortgage, or transfer of agreement on commercial housing sale, it is required to notarize or authenticate the agreement, except for cases prescribed in Clause 2 of this Article.

Regarding any agreement prescribed in this Clause, the effective date of the agreement shall be the date on which the agreement is notarized or authenticated.

Based on the above regulations in Vietnam, if the transfer is an off-the-plan house, there must be a transfer contract and be notarized and authenticated at a notary practice organization if the transferor is not an enterprise with real estate business functions.

Best regards!