Instructions for handover of off-plan housing and buildings in Vietnam as of January 1, 2025

Instructions for handover of off-plan housing and buildings in Vietnam as of January 1, 2025 (Internet image)  

Regarding this matter, LawNet would like to answer as follows: 

On November 28, 2023, the National Assembly passed the Law on Real Estate Business 2023.

Instructions for handover of off-plan housing and buildings in Vietnam as of January 1, 2025

Article 27 of the Law on Real Estate Business 2023 stipulates the handover of off-plan housing and buildingsin Vietnam as follows:

- Housing shall be handed over in accordance with regulations of the Housing Law.

- The real estate project investor shall hand over the building or its floor area to the buyer or tenant-buyer under terms and conditions of the signed contract and according to the following rules:

= The acceptance testing of the building for putting into use or operation has been properly carried out and inspected in accordance with regulations of the Construction Law;

= Handover of the building or its floor area must be documented;

= Conditions, procedures and authority to conduct the handover shall comply with regulations of the Construction Law.

- The buyer or tenant-buyer of the building or its floor area shall directly, or follow procedures for authorizing their lawful representative in writing as prescribed in the Civil Code 2015 to, take handover of the building or its floor area.

Payment for sale and purchase or lease purchase of off-plan housing or buildings in Vietnam as of January 1, 2025

According to Article 25 of the Law on Real Estate Business 2023, regulations on payment for sale and purchase or lease purchase of off-plan housing or buildings are as follows:

- Payment for sale and purchase of off-plan housing or building or its floor area will be made in several times. The initial payment, including deposit, shall not exceed 30% of the contract price, and subsequent payments will be paid according to the construction schedule provided that total amount of such payments made before handover of the housing or building or its floor area to the buyer will not exceed 70% of the contract price. This amount will not exceed 50% of the contract price if the seller is a foreign-invested business organization as prescribed in clause 4 Article 10 of the Law on Real Estate Business 2023.

- Payment for lease purchase of off-plan housing or building or its floor area will be made in several times. The initial payment, including deposit, shall not exceed 30% of the contract price, and subsequent payments will be paid according to the construction schedule until the housing or building or its floor area is handed over to the tenant-buyer, provided that total amount of such payments made to the landlord before handover will not exceed 50% of the contract price. The remaining amount shall be considered as rent expense which will be paid to the landlord within a specific period of time as agreed upon in the signed contract.

- Total amount of payments made to the seller or landlord before a certificate of LURs and ownership of property on land is issued to the buyer or tenant-buyer as prescribed by the Land Law shall not exceed 95% of the contract price. The remaining amount shall be paid when such certificate is issued to the buyer or tenant-buyer by a competent authority in accordance with regulations of the Land Law.

More details can be found in the Law on Real Estate Business 2023 which comes into force from November 28, 2023.

The Law on Real Estate Business 2014 expires from the effective date of the Law on Real Estate Business 2023, except for the cases specified in Clauses 2, 3, 5, 6, 7, 9, 12 v.

à 13 Article 83 of the Law on Real Estate Business 2023.

To Quoc Trinh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE