Guidance on reselling social housing within 5 years in Vietnam from August 1, 2024

Guidance on reselling social housing within 5 years in Vietnam from August 1, 2024 (Image from the Internet)

On July 26, 2024, the Government of Vietnam issued Decree 100/2024/ND-CP detailing some articles of the Housing Law 2023 on the development and management of social housing.

Regulations on the sale, lease purchase, and lease of social housing in Vietnam from August 1, 2024

Based on Points d, dd, and e Clause 1 Article 89 Housing Law 2023, the sale, lease purchase, and lease of social housing are regulated as follows:

- The purchaser of social housing may not resell the house within a minimum period of 5 years from the date of full payment for the house, except as specified in Point dd Clause 1 Article 89 of the Housing Law 2023;

- Within the 5-year period from the date of full payment for the social housing, if the purchaser needs to resell the house, they can only resell it to the project investor in social housing construction or to eligible recipients at a maximum price equal to the price in the purchase contract with the project investor in social housing construction. Personal income tax payment must comply with the tax regulations;

- After the 5-year period from the date of full payment for the house, if the social housing purchaser has obtained a Certificate, they may resell the house at market prices to those in need. The seller is not required to pay land levy but must pay income tax following tax regulations, except when selling privately-owned social housing, where the seller must pay land levy according to government regulations and pay income tax following tax laws.

Guide on reselling social housing within the 5-year period from August 1, 2024

The reselling of social housing within the 5-year period as specified in Point dd Clause 1 Article 89 Housing Law 2023 is carried out as follows:

- In the case of reselling social housing to the project investor, the seller must carry out the contract termination procedures with the project investor. The resale is performed as specified in Point dd Clause 1 Article 89 Housing Law 2023 and real estate and land laws.

- In the case of reselling social housing to another eligible purchaser, the following procedures apply:

+ The new purchaser must have documents verifying their eligibility and conditions as guided by the Minister of Construction, the Minister of Defense, and the Minister of Public Security. They must submit their dossier to the local Department of Construction where the project is located to verify eligibility and conditions as specified in Point dd Clause 1 Article 38 Decree 100/2024/ND-CP;

+ The seller must carry out the contract termination procedures with the project investor (if applicable). The resale is performed as specified in Point dd Clause 1 Article 89 Housing Law 2023 and real estate and land laws.

(According to Article 39 Decree 100/2024/ND-CP)

Procedures for reselling social housing after the 5 years in Vietnam from August 1, 2024

According to Article 40 Decree 100/2024/ND-CP, the procedure for reselling social housing after the 5-year period as specified in Point e Clause 1 Article 89 Housing Law 2023 is as follows:

- The seller must have a Certificate of land use rights and ownership of assets attached to the land.

- The resale is performed as specified by real estate and land laws.

More details can be found in Decree 100/2024/ND-CP which comes into force in Vietnam from August 1, 2024.

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