Methods of transactions in housing under current regulations in Vietnam

Methods of transactions in housing under current regulations in Vietnam (Internet image) 

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

1. Methods of transactions in housing under current regulations in Vietnam

According to Article 117 of the Law on Housing 2014, transactions in housing include agreements on housing sale, lease, and lease purchase, transfer of agreements on commercial housing sale, gifting, exchange, inheritance, mortgage, capital contribution, lending, permission for stay, and management authorization.

2. Requirements applied to houses entered into transactions in Vietnam

According to Article 118 of the Law on Housing 2014, the requirements applied to houses entered into transactions are as follows:

- Any house regarding transactions in housing sale, lease purchase, gifting, mortgage, or capital contribution shall meet the requirements below:

+ There is the Certificate as prescribed, except for cases prescribed in Clause 2 of Article 118 of the Law on Housing 2014;

+ There is no dispute, complaint, or proceedings for homeownership; the term of homeownership has not expired if the house is under a term contract on housing;

+ The house is not distrained;

+ There is no decision on land revocation, notification of housing clearance or demolishment issued by the competent agency.

The requirements prescribed in Point b and c of Clause 1 of Article 118 of the Law on Housing 2014shall not apply to transactions in off-the-plan housing sale or lease purchase.

- The following transactions in housing are not required the Certificate:

+ Transactions in off-the-plan housing sale or mortgage;

+ Transactions in house of gratitude gifting;

+ Transactions in state-owned housing sale or lease purchase; social housing or non-state-owned housing serving the relocation sale or lease purchase; housing sale prescribed in Clause 4 Article 62 of the Law on Housing 2014;

+ Transactions in housing lease, lending, permission for stay, management authorization;

+ Transactions in housing inheritance;

+ Transactions in transfer of agreement on commercial housing which is under residential construction projects including the case in which the house is received from the investor but the application for the Certificate of that house has not sent to the competent agency.

Any documentary evidence on requirements pertaining to the house to be entered into the transaction as prescribed in this Clause shall comply with regulations of the Government.

- Any house under lease contract shall both comply with Point b, c, and d Clause 1 of Article 118 of the Law on Housing 2014 and satisfy requirements pertaining to quality, safety regarding the lessee, electricity system, water supply and drainage, hygiene and environment.

3. Requirements pertaining to parties in the housing transactions in Vietnam

Requirements pertaining to parties in the housing transactions in Vietnam according to Article 119 of the Law on Housing 2014 are as follows:

- Any entity who sells, leases, leases and sells housing, transfers agreements on commercial housing sale, gives, exchanges, bequeaths, mortgages, lends, permit to stay in housing, or authorizes housing management must satisfy the following requirements:

+ He/she is the homeowner, or the person permitted and authorized by the homeowner to enter into housing as prescribed in the Law on Housing 2014 and law on civil; if the agreement of commercial housing is transferred, he must be the buyer for housing of the investor or the transferee of the agreement on housing sale;

+ If the entity is a person, he must have full civil capacity to enter into transactions in housing as prescribed in law on civil; if the entity is an organization, it must have legal personality, except for the organization giving house of gratitude.

- If the entity who buys, rents, rents and purchases housing, or receives agreements on commercial housing sale, receives housing exchange, gives, inherit housing, receives housing as capital contribution or mortgage, borrows, or stays in housing, or is authorized to manage housing is a person, he/she must satisfy following requirements:

+ If the entity is a Vietnamese person, he/she must have full civil capacity to enter into transactions in housing as prescribed in law on civil and he/she is not required to register permanent residence in the place where the house under transactions is located;

+ If the entity is a foreign person, or an oversea Vietnamese, he/she must have full civil capacity to enter into transactions in housing as prescribed in Vietnamese law, qualify for the homeownership in Vietnam as prescribed in the Law on Housing 2014 and he/she is not required to register temporary or permanent residence in the place where the house under transactions is located.

- If the entity who buys, rents, rents and purchases housing, or receives agreements on commercial housing sale, receives housing exchange, gives, inherit housing, receives housing as capital contribution or mortgage, or is authorized to manage housing is an organization, it must have legal personality regardless of place where it sets up or registers business;

If the entity is a foreign organization, it must qualify for the homeownership in Vietnam as prescribed in the Law on Housing 2014; if it is authorized to manage housing, it must provide real estate services and run business in Vietnam as prescribed in law on real estate trading.

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