Existing housing and building business rules in Vietnam

Existing housing and buildings to be put on market in Vietnam

Pursuant to Article 12 of the Law on Real Estate Business 2023 (taking effect on January 1, 2025), existing housing and buildings to be put on market include:

- Existing housing of various types, except those considered as public property as prescribed by the Law on Housing 2023.

- Existing buildings as prescribed in clause 2 Article 5 of the Law on Real Estate Business 2023.

- Floor areas of the existing buildings prescribed in clause 3 Article 5 of the Law on Real Estate Business 2023.

Existing housing and building business rules in Vietnam (Internet image)

Existing housing and building business rules in Vietnam

Pursuant to Article 13 of the Law on Real Estate Business 2023, the existing housing and building business rules in Vietnam include:

- Only housing, buildings or their floor areas associated with LURs can be traded, unless otherwise prescribed by the Land Law 2013 and the Law on Housing 2023. Owners of apartments of apartment buildings, floor areas of buildings or multi-owner buildings shall be entitled to use land in the form of shared use.

- Each buyer or tenant-buyer of housing, building or its floor area under this Law shall be issued by the State with a certificate of LURs and ownership of property on land in respect of the housing, building or its floor area which they buys or obtains under a lease purchase agreement. Procedures for issuing such certificate shall be followed in accordance with the Land Law 2013.

- Provisions on housing ownership duration set out in the Housing Law shall apply to sale or lease purchase of housing. Selling or offering lease purchase of a building or its floor area shall be subject to provisions on duration of buildings set out in the Construction Law.

- Selling or offering lease purchase of housing, buildings or their floor areas shall also be bound by provisions on forms, purposes and duration of land use, and registration of land and property on land set out in the Land Law 2013.

- Each buyer or tenant-buyer of housing, building or its floor area shall have the ownership of the housing, building or its floor area which they buys or obtains under a lease purchase agreement established. Such ownership shall be established from the time when the buyer or tenant-buyer has fully paid the purchase or lease purchase price and received handover of the housing, building or its floor area, unless otherwise agreed upon by the parties.

- The sale and purchase, and lease purchase of the housing, building or its floor area must be supported by documents proving that the housing or building meets relevant conditions set out in the Law on Real Estate Business 2023.  Determination of area and equipment of shared ownership/shared use and those subject to separate ownership/use rights of owners must be included in the agreement on sale and purchase of the housing, building or its floor area.

Mai Thanh Loi

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