Can social housing be sold in Vietnam? What are requirements for social housing sale in Vietnam?

Is it possible to sell social housing when living less than 5 years in Vietnam?

Can social housing be sold for less than 5 years? Hope to receive your reply. Thank you!

Reply:

Pursuant to Clause 4, Article 62 of the Law on Housing 2014, rules for social housing lease, lease purchase or sale are prescribed as follows:

4. The buyer under the agreement on social housing lease purchase or sale may not resell the house within at least 05 years, from the date on which the total amount is paid off, except for the management unit of that social housing or entities entitled to buy that social housing if the management unit does not buy the house at the selling price of the same social housing in the same location, at the same time. Income from this transaction is exempted from personal income tax.

Therefore, in order to sell social housing when it has not been used for more than 5 years, you must meet the following conditions:

- You have paid in full the rent and purchase of social housing.

- You may only resell your house to the social housing management unit that you are living in or the people eligible to buy social housing if the management unit does not buy back your house with the maximum selling price equal to the price that you are living in. The management unit is selling other properties of the same type, location and time as your home and does not have to pay personal income tax.

In case the social housing management unit does not agree to buy your house, you may only sell it to the subjects specified in Clause 1, Article 50 of the Law on Housing 2014 including the following subjects:

- People with meritorious services to the Resolution prescribed in law on preferential treatment for people with meritorious services to the Resolution;

- Individuals living in low income, poverty or near poverty in the urban areas;

- Employees working in enterprises inside or outside the industrial zones;

- Commissioned officers, professional and technical non-commissioned officers, standing army, and workers in the agencies of People’s Police and People’s Army;

- Officials and civil servants prescribed in law on officials and civil servants;

- Entities who have returned official residence as prescribed Clause 5 Article 81 of this Law;

- Households or individuals subject to land withdrawal and land clearance as prescribed without any compensation in form of housing or residential land paid by the State.

Above is the content of advice from us sent to you.

What are requirements for social housing sale in Vietnam?

Hello, I'm Minh Thanh, a state civil servant currently living and working in Hanoi, a few years ago when the government had a policy for certain subjects in buying social housing. My family has bought 01 house, the payment and issuance of house use right certificate have been completed. But now the family economy is more stable. So I am intending to sell the house that my family is using to buy another commercial apartment so that the family can live more comfortably. So let me ask if my family can sell that social housing. Hope to get an answer soon.

Reply:

According to the provisions of Article 62 of the Law on Housing 2014:

1. The social housing lease, lease purchase or sale must comply with regulations of this Law, each entity prescribed in Clause 1 Article 50 of this Law may not rent, rent and buy, or buy more than one social house concurrently; the students of public ethnic boarding schools shall be exempted from housing rents and service charges during their duration of study.

2. The term of a social housing lease agreement is at least 05 years; the minimum term for lease purchase payment for social housing is 05 years from the date on which the lease purchase agreement is signed.

3. The lessee under an agreement on social housing lease or lease purchase may not sell, sublet, or lend that house during the term of the agreement; if he/she no longer wishes to rent, or rent and buy that house, the agreement shall be terminated and that house shall be returned.

4. The buyer under the agreement on social housing lease purchase or sale may not resell the house within at least 05 years, from the date on which the total amount is paid off, except for the management unit of that social housing or entities entitled to buy that social housing if the management unit does not buy the house at the selling price of the same social housing in the same location, at the same time. Income from this transaction is exempted from personal income tax.

5. After 05 years from the date on which the total housing amount is paid off and the Certificate is granted, the buyer may resell their house according to market mechanism provided that they have paid land levies as prescribed in regulations of the Government and income tax as prescribed in law on taxation as required; if they resell to the entities entitled to buy social housing as prescribed of this Law, the maximum selling price must equal the selling price of the same social housing in the same location, the same selling time and that housing is exempted from personal income tax.

If the buyer or the lessee who is subject to the relocation may resell the house(s) according to market mechanism after they have paid off the total amount and have granted the Certificate provided that they have paid land levies as prescribed in regulations of the Government and income tax as prescribed in law on taxation as required.

6. Any transactions in social housing lease, lease purchase, or sale do not comply with regulations of this Law, the agreement on housing lease, lease purchase, or sale shall be invalidated and the lessee or the buyer must return the house to the agency in charge of social housing; if they do not return the house, the People’s Committee of the province where the house is located shall enforce the withdrawal of that house.

The housing rents or prices shall comply with regulations of law on civil; the lease purchase prices of social housing shall comply with Article 135 of this Law.

Thus, social houses can only be sold or mortgaged after 5 years, from the time of paying off the house purchase or lease purchase under the contract signed with the seller and the certificate of land use right, ownership of houses and other land-attached assets has been issued in accordance with the law on land. And only sold to those who meet the regulations on buying social housing according to the provisions of law in Vietnam.

Can social housing deposit be returned in Vietnam?

If I buy a social housing with a deposit of 10% of the value but now change my mind and don't want to buy anymore, can I get my deposit back? Looking forward to hearing from you soon, thank you very much!

Reply:

Clause 5, Article 63 of the Law on Housing 2014 provides:

5. The advance paid by the social housing buyer prescribed in this Article shall conform to agreement on housing sale, approved floor space completed of the residential building and rate of progress provided that the total amount of advance paid by the buyer does not exceed 70% of the house's value which is determined before it is transferred and does not exceed 95% of the house’s value before the buyer is granted the Certificate.

According to Article 328 of the 2015 Civil Code:

1. Deposit is an act whereby one party (hereinafter referred to as the depositor) transfers to another party (hereinafter referred to as the depositary) a sum of money or precious metals, gemstones or other valuable things (hereinafter referred to as the deposited property) for a period of time as security for the entering into or performance of a contract.

2. Upon a contract being entered into or performed, any deposited property shall be returned to the depositor, or deducted from the amount of an obligation to pay money. If the depositor refuses to enter into or perform the contract, the deposited property shall belong to the depositary. If the depositary refuses to enter into or perform the contract, it must return the deposited property and pay an amount equivalent to the value of the deposited property to the depositor, unless otherwise agreed.

Thus, the deposit is agreed between the two parties but must not exceed the deposit amount specified in Clause 5, Article 63 of the Law on Housing 2014. If there is no other agreement, when the contract is terminated, you will lose deposit, the deposited property belongs to the party receiving the deposit in Vietnam.

Best regards!