What are regulations on social housing sale, lease or lease purchase in Vietnam?

What are regulations on social housing sale, lease or lease purchase in Vietnam?

Hello Lawnet. I am Ngoc Thuy. I am wishing to learn the provisions of the law related to the ownership, development, management and use of housing; housing transactions; State management of housing in Vietnam. I have a question: What are regulations on social housing sale, lease or lease purchase in Vietnam? Which legal documents can I find information? Thank you!

Ngoc Thuy (ngocthuy*****@gmail.com)

Answer:

Pursuant to Article 63 of the Law on Housing in 2014 stipulating regulations on social housing sale, lease or lease purchase in Vietnam as follows:

- The investor in the project for social housing construction may decide whether to sell, or lease and sell off-the-plan housing or sell existing housing.

- The transactions in sale or lease purchase of off-the-plan social housing must meet requirements below:

+ There are dossiers on residential construction project; there are approved housing technical design and license for construction if applicable;

+ In the residential area for sale or lease purchase, the foundation of the house has been completed as prescribed in law on construction, the system of roads, water supply and drainage, electricity has been completed in conformity with the approved specific planning for construction, design documents and rate of progress; the mortgage on the house (if any) has been paid off, unless otherwise agreed by the buyer/lessee and the lender;

+ The housing authority of province has issued the notification of housing conformable to sale, except for social housing invested by the State using capital resources prescribed in Clause 1 Article 53 of this Law.

- The transactions in lease, sale or lease purchase of existing social housing must meet requirements below:

+ In the residential area for lease, lease purchase, or sale, the technical and social infrastructure has been completed in conformity with the approved specific planning for construction, design documents and rate of progress; the mortgage on the house (if any) has been paid off, unless otherwise agreed by the buyer/lessee and the lender;

+ The housing authority of province has issued the notification of housing conformable to sale, lease, or lease purchase, except for social housing invested by the State using capital resources prescribed in Clause 1 Article 53 of this Law;

+ The housing satisfies requirements prescribed in Point b and Point c Clause 1 Article 118 of this Law.

- The invest may not conclude any agreement on off-the-plan social housing lease; regarding the housing satisfying requirements prescribed in Point a and Point b Clause 2 of this Article, the investor may only conclude an agreement on deposit and collect the lease deposit for not exceeding 12 months of provisional housing rents; the agreement on deposit must comply with requirements pertaining to entities and social housing lease as prescribed in this Law. If the house satisfies all requirements as prescribed in Clause 3 of this Article, the investor is entitled to conclude the agreement on housing lease with the contractual party of the agreement on deposit.

- 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.

- The Government shall provide guidance on proven documents on entities and requirements for benefiting from policies on social housing; building or buying commercial housing for using social housing; type of housing and social housing area standards; the tax reduction and loan capital incentives given to social housing for lease; the lease, lease purchase, sale and management of social housing.

Please refer to the Law on Housing in 2014 for further information.

Are social housing purchase and sale contracts in Vietnam required to be notarized or authenticated?

Hello Lawnet. I am Thanh Chuong. I want to learn the provisions of the law related to the ownership, development, management and use of housing; housing transactions; State management of housing in Vietnam. I have a question: Are social housing purchase and sale contracts in Vietnam required to be notarized or authenticated? Which legal documents can I find information? Thank you!

Thanh Chuong (thanhchuong*****@gmail.com)

Answer:

Pursuant to Article 122 of the Law on Housing in 2014 stipulating notarization and authentication of agreements and effective date of housing agreements as follows:

- 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 Article 122 of the Law on Housing in 2014.

Regarding any agreement prescribed Clause 1 of Article 122 of the Law on Housing in 2014, the effective date of the agreement shall be the date on which the agreement is notarized or authenticated.

- Regarding transactions in giving houses of gratitude; sale or lease purchase of state-owned housing; sale or lease purchase of social housing, housing serving the relocation; contributed housing which one entity of contracting parties is an organization; housing lease, lending, permission for stay, or authorization of housing management, it is not required to notarize or authenticate the agreement, unless contracting parties wish to notarize or authenticate the agreement.

Regarding any agreement prescribed in Clause 2 of Article 122 of the Law on Housing in 2014, the effective date of the agreement shall be agreed by contracting parties; if the contracting parties do not agree, the effective date of agreement shall be the date on which the agreement is signed.

- The documents on housing inheritance must be notarized or authenticated as prescribed in law on civil.

- The notarization of housing agreement must be carried out at a notary; the authentication of housing agreement must be carried out at the People’s Committee of the commune where the house is located.

Based on regulations in Article 122 of the Law on Housing in 2014, social housing purchase and sale contracts in Vietnam are not required to be notarized or authenticated, unless required by the parties.

Please refer to the Law on Housing in 2014 for further information.

What are requirements for the transactions in sale or lease purchase of off-the-plan social housing in Vietnam?

Hello Lawnet. My name is Ngoc Hanh. I want to learn the provisions of the law related to the ownership, development, management and use of housing; housing transactions; State management of housing in Vietnam. I have a question: What are requirements for the transactions in sale or lease purchase of off-the-plan social housing in Vietnam? Which legal documents can I find information? Thank you!

Ngoc Hanh (ngochanh*****@gmail.com)

Answer:

Pursuant to Clause 2 Article 63 of the Law on Housing in 2014 stipulating requirements for the transactions in sale or lease purchase of off-the-plan social housing in Vietnam as follows:

- There are dossiers on residential construction project; there are approved housing technical design and license for construction if applicable;

- In the residential area for sale or lease purchase, the foundation of the house has been completed as prescribed in law on construction, the system of roads, water supply and drainage, electricity has been completed in conformity with the approved specific planning for construction, design documents and rate of progress; the mortgage on the house (if any) has been paid off, unless otherwise agreed by the buyer/lessee and the lender;

- The housing authority of province has issued the notification of housing conformable to sale, except for social housing invested by the State using capital resources prescribed in Clause 1 Article 53 of this Law.

Please refer to the Law on Housing in 2014 for further information.

Best regards!