When can social housing be purchased in Vietnam?

When can social housing be purchased in Vietnam?

Pursuant to Clause 4, Article 19 of Decree No. 100/2015/ND-CP stipulating purchase, lease, or lease purchase of social housing as follows:

4. The buyer or tenant/buyer of a social house must not put it up as collateral (except pledging it to the bank to as security for a mortgage loan on the same house) and must not transfer it in any shape or form for at least 05 years since the payment for purchase or lease purchase of the house is completely made under the contract with the seller of seller/landlord. The house may only be sold, mortgage, or leased out after the Certificate is granted.

Since the buyer or tenant/buyer of the social house is permitted to sell it, apart from the amounts payable when selling houses as prescribed by law, the seller of an apartment shall pay 50% of the land levy on such apartment to the State; the seller of a row house shall pay 100% of land levy according to the land prices imposed by the People’s Committee of the province at that time.

Thus, according to current regulations, social housing cannot be transferred for at least 05 years since the payment for purchase or lease purchase of the house is completely made under the contract with the seller of seller/landlord. The house may only be sold, mortgage, or leased out after the Certificate is granted in Vietnam.

What are principles of grant of certificates of ownership of houses and other land-attached assets in Vietnam?

According to Article 98 of Land Law, principles of grant of certificates of ownership of houses and other land-attached assets are as follows:

1. The certificate of land use rights and ownership of houses and other land-attached assets shall be granted for each land parcel. Land users who are using several agricultural land parcels in the same commune, ward or township, shall be granted one certificate for all parcels at their request.

2. For a land parcel which is used by several land users or for the houses and other land-attached assets which are owned by several owners, the names of all involved persons shall be recorded in the certificate, and each person shall be granted one certificate. At the request of the land users or owners, only one certificate may be granted to all of them and delivered to the representative.

3. Land users or owners of houses and other land-attached assets shall be granted a certificate of land use rights and ownership of houses and other land-attached assets after they have fulfilled the financial obligations as prescribed by law.

In case the land users or owners of houses and other land-attached assets do not have to fulfill financial obligations or are exempted from financial obligations or allowed to owe the financial obligations and in case the land is leased with annual rental payment, they may receive the certificate of land use rights and ownership of houses and other land-attached assets right after the certificate is granted by a competent agency.

4. In case land use rights, or land use rights and the ownership of houses and other land- attached assets, or the ownership of houses and other land-attached assets are/is the joint property of husband and wife, the full names of both husband and wife must be recorded in the certificate of land use rights and ownership of houses and other land-attached assets, unless husband and wife agree to record the full name of only one person.

In case land use rights, or land use rights and the ownership of houses and other land-attached assets, or the ownership of houses and other land-attached assets are/is the joint property of husband and wife and the granted certificate only records the full name of the husband or wife, a new certificate which records the full names of both husband and wife may be granted if requested.

5. If there is a difference in the area between the actual surveyed data with data recorded on the documents as prescribed in Article 100 of this Law or in the granted certificate while the boundaries of the land parcel in use have not changed compared with the boundaries of the land parcel at the time of receiving the document on land use rights and there is no dispute with the adjacent land users, the land area is determined in accordance with the actual surveyed data for granting or changing the certificate. Land users do not have to pay land use levy for the positive balance in area, if any.

In case of resurvey and the boundaries of the land parcel change compared with the boundaries of the land parcel at the time of receiving the document on land use rights and the surveyed area is larger than the area recorded in that document, the balance area (if any) may be considered for the grant of a certificate of land use rights and ownership of houses and other land-attached assets in accordance with Article 99 of this Law.

Best Regards!