What are regulations on payment for off-the-plan real estate sale or lease purchase in Vietnam?

1. What are regulations on payment for off-the-plan real estate sale or lease purchase in Vietnam? 

Article 57 of the Law on Real Estate Business 2014 stipulates on payment for off-the-plan real estate sale or lease purchase as follows:

1. The off-the-plan real estate sale or lease purchase shall be paid by installments, the initial installment do not exceed 30% of the agreement value, the next installments shall be conformable with real estate construction progress provided that total installment does not exceed 70% of the agreement value if the building has been not transferred to clients; if the seller or the lessor is a foreign-invested enterprise, the total installment does not exceed 50% of the agreement value.

If the buyer or the lessee has been not granted the Certificate of land, ownership of land and property on land, the seller or the lessor shall not collect payment not exceeding 95% of the agreement value from the buyer or the lessee; the remaining value shall be paid when the buyer or the lessee is granted the Certificate of land, ownership of land and property on land by competent agencies.

2. The investor must use the option fee given by clients for proper purpose as committed.

2. Rights and obligations of contracting parties in off-the-plan building sale or lease purchase in Vietnam

Rights and obligations of contracting parties in off-the-plan building sale or lease purchase are specified in Article 58 of the Law on Real Estate Business 2014:

Apart from rights and obligations of contracting parties in real estate sale or lease purchase prescribed in Chapter II of this Law, they shall have following rights and obligations:

1. The buyer or the lessee may request the seller or the lessor to provide information about construction progress, option fee use and physical verification at the work;

2. The seller or the lessor must provide information about construction progress, option fee use and enable the buyer to conduct physical verification at the work;

3. What is transfer of off-the-plan building sale or lease purchase agreement in Vietnam? 

Article 59 of the Law on Real Estate Business 2014 provides for 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.

2. The agreement transferee may retain rights and obligations of the buyer or the lessee. The investor must enable contracting parties to transfer the agreement and collect no remuneration related to the agreement transfer.

3. The last agreement transferee shall be granted the Certificate of rights to use land, ownership of land property on land as prescribed in law on land.

4. The agreement transfer prescribed in this Article shall not apply to social house sale or lease purchase agreements.

5. The Government shall providing guidance on this Article.

Best Regards!