Vietnam’s regulation on payment concerning trading of houses to be generated in the future

Vietnam’s regulation on payment concerning trading of houses to be generated in the future

According to the Law, the regulation on payment in trading and lease purchase of houses and construction works to be generated in the future is as follows: 

- Payment in the trading of a house, construction work, or the construction floor area in the construction work to be generated in the future shall be paid in installments, and the first installment shall not exceed 30% of the value of the contract, including deposit, the following installments shall be in conformity with the construction progress, but the total value shall not exceed 70% of the value of the contract when the house, construction work, or construction floor area in the construction work has not been handed over to the buyer. If the seller is a foreign-invested economic organization prescribed in Clause 4 Article 10 of the Law on Real Estate Trading 2023, the total value shall not exceed 50% of the value of the contract.

- Payment in the lease purchase of a house, construction work, or the construction floor area in the construction work to be generated in the future shall be paid in installments, and the first installment shall not exceed 30% of the value of the contract, including deposit, the following installments shall be in conformity with the construction progress until the handover of the house, construction work, or construction floor area in the construction work to the lease purchase party but the total deposit paid to the lessor shall not exceed 50% of the lease purchase contract of the house, construction work, or construction floor area in the construction work.

The unpaid amount shall be the rent to be paid to the lessor within a certain period agreed on in the contract. 

- If the buyer or lease purchase party has not been granted a certificate of land use rights, ownership rights to property on lands according to land laws, the seller or lessor shall only collect an amount of up to 95% of the value of the contract; the remaining value shall be paid when a state competent authority grants the certificate of land use rights or ownership rights to property on lands according to land laws to the buyer or lease purchase party. 

See more details in the Law on Real Estate Trading 2023, which comes into force as of January 1, 2025 and replaces the Law on Real Estate Trading of Vietnam 2014 (amended in 2020).

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE