Instructions on handling cases of expiration of house ownership period in Vietnam

Instructions on handling cases of expiration of house ownership period in Vietnam (Internet image)

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

1. House ownership duration in Vietnam

House ownership duration according to Article 7 of Decree 99/2015/ND-CP is as follows:

- In case of limited house ownership duration prescribed in Article 123 of the Law on Housing, the seller and the buyer shall reach an agreement on the

+ Period of time over which the buyer owns the house

+ Rights and obligations of the buyer during the house ownership period;

+ Responsibility to register and obtain the certificate for the buyer;

+ The handover of the house associated with land use right after the ownership period expires;

+ Disposal of the certificate after the ownership period expires, and responsibility of the parties for execution of the house purchase contract.

During the house ownership period, the buyer will be granted a Certificate of such house by revoking the seller’ Certificate and granting it to the buyer, or write information on page 3 of the seller’s Certificate and give it to the buyer.

In this case, the buyer and the seller shall reach an agreement that if the buyer is entitled to sell, gift, bequeath, or contribute the house as capital during the house ownership period, then the buyer, recipient, inheritor only owns the house for the period that was agreed by the initial buyer and the initial owner.

- The foreign organizations mentioned in Point b Clause 1 Article 159 of the Law on Housing may own a quantity of housing not exceeding the limit written on their investment registration certificates.

When the house ownership period written on the Certificate expires, if the owner wishes to have this period extended, the State shall consider granting an extension according to Article 77 of Decree 99/2015/ND-CP. If the investment registration certificate has an indefinite term, the Certificate granted to the owner will also have an indefinite term.

Clause 1 Article 8 of Decree 99/2015/ND-CP shall apply to the case a foreign organization goes bankrupt, is dissolved or shut down before the term of home-ownership expires, or has its certificate of investment or license to operate in Vietnam revoked by Vietnam’s government.

During the house ownership period, if the foreign organization is converted into a domestic organization through acquisition or capital transfer, it may acquire a long-term house ownership.

- Foreigners mentioned in Point c Clause 1 Article 159 of the Law on Housing may own housing for up to 50 years from the date of issue of the Certificate. When the house ownership period written on the Certificate expires, if the owner wishes to have this period extended, the State shall consider granting an extension according to Article 77 of Decree 99/2015/ND-CP.

- In case the foreign organization or individual sells or offers the house before the expiration of the ownership period, the buyer or recipient may own the house as follows:

+ If the house is sold or gifted to a domestic organization, household, individual, or a Vietnamese citizen residing overseas, the buyer or recipient will acquire a long-term ownership of the house;

+ If the house is sold to a foreign organization or individual eligible to own housing in Vietnam, the buyer or recipient may own the house for the remaining period. When this period expires, if the owner wishes to have this period extended, the State shall consider granting an extension according to Article 77 of Decree 99/2015/ND-CP.

+ The seller or giver must pay tax and other amounts to state budget as prescribed by Vietnam’s law.

2. Instructions on handling cases of expiration of house ownership period in Vietnam

Instructions on handling cases of expiration of house ownership period according to Article 8 of Decree 99/2015/ND-CP is as follows:

- Upon the expiration of the house ownership period as agreed between the initial buyer and seller prescribed in Clause 1 Article 7 of Decree 99/2015/ND-CP, the house ownership and land use right shall be settled as agreed by both parties in the initial house purchase contract.

If such agreement does not exist, the house ownership and land use right shall be transferred to the initial owner or his/her legal inheritor.

If the initial owner is an organization that goes bankrupt, is dissolved, or shut down, its housing shall be dealt with in accordance with regulations of law on bankruptcy, dissolution, or shutdown, and the house ownership shall be transferred to an eligible organization or individual as prescribed by regulations of law on bankruptcy, dissolution, or shutdown.

While the house owner is being determined, the organization or individual managing the house shall keep managing it and must not sell, lease under a lease-purchase agreement, offer, bequeath, pledge, or contribute the house as capital. The house shall be transferred within 03 months from the day on which its owner is determined.

In case a foreign organization has its investment registration certificate or license to operate in Vietnam revoked by Vietnam’s government, the owner must sell or offer the house to an entity eligible to own housing in Vietnam.

- In case the initial buyer and seller mentioned in Clause 1 Article 7 of Decree 99/2015/ND-CP does not have an agreement on disposal of the Certificate upon the expiration of the house ownership period, the issuer of the Certificate shall revoke it from the current owner and issue it to the initial owner as prescribed in Clause 1 of Article 8 of Decree 99/2015/ND-CP.

If the Certificate cannot be retrieved, the issuer shall issue a decision to annul the Certificated issued to the current owner and reissue it to the initial owner. Procedures for issuing the Certificate shall comply with regulations of law on land.

- Before the expiration of the house ownership period prescribed in Clause 2 and Clause 3 Article 7 of Decree 99/2015/ND-CP (including extended period prescribed in Article 77 of Decree 99/2015/ND-CP), the foreign organization or individual may directly or authorize another organization or individual to exercise their right to sell or gift the owner under their lawful ownership as prescribed in Clause 4 Article 7 of Decree 99/2015/ND-CP.

If the foreign organization or individual fails to sell or offer the house by the deadline, such house shall be passed into public ownership.

The Department of Construction shall request the People’s Committee of the province where the house is located to issue a decision on establishment of public ownership, expropriate the house, use it, sell it, or lease it out in accordance with regulations on management of state-owned houses.

In case a foreign individual is expelled from Vietnam or a foreign organization is forced to stop operating in Vietnam by a competent authority of Vietnam because illegal use of housing under their ownership, the house shall be dealt with under a decision of a competent authority of Vietnam.

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