Payment for off-the-plan real estate sale or lease purchase in Vietnam

Requirements in terms of off-the-plan real estate to be put on the market in Vietnam

Pursuant to Article 55 of the Law on Real Estate Business 2014, the requirements in terms of off-the-plan real estate to be put on the market are stipulated as follows:

- There are documents on land, project documents or construction drawing approved by competent agencies, License for construction if it is required, documents on certification of completion of technical infrastructure in equivalent to project progress; or it is required to gain the certification of completion of the foundation of the building regarding off-the-plan apartment buildings or mix-used buildings.

- Before entering an agreement on sale or lease purchase of an off-the-plan building

Within 15 days from the day on which the notification is received, the agency in charge of housing of province shall respond in writing to the investor with the building permitted to be sold or leased purchase; if the building do not meet the requirements, they must provide explanation.

Payment for off-the-plan real estate sale or lease purchase in Vietnam (Internet image)

Payment for off-the-plan real estate sale or lease purchase in Vietnam

Pursuant to Article 57 of the Law on Real Estate Business 2014, the payment regime for buying, selling, and leasing real estate to be formed in the future is prescribed as follows:

- The off-the-plan real estate sale or lease purchase shall be paid by installments, the initial installment do not exceed 30% of the agreement value, the next installments shall be conformable with real estate construction progress provided that total installment does not exceed 70% of the agreement value if the building has been not transferred to clients; if the seller or the lessor is a foreign-invested enterprise, the total installment does not exceed 50% of the agreement value.

If the buyer or the lessee has been not granted the Certificate of land, ownership of land and property on land, the seller or the lessor shall not collect payment not exceeding 95% of the agreement value from the buyer or the lessee; the remaining value shall be paid when the buyer or the lessee is granted the Certificate of land, ownership of land and property on land by competent agencies.

- The investor must use the option fee given by clients for proper purpose as committed.

Transfer of off-the-plan building sale or lease purchase agreement in Vietnam

Pursuant to Article 59 of the Law on Real Estate Business 2014, regulations on the transfer of off-the-plan building sale or lease purchase agreement are as follows:

- The buyer or the lessee may transfer the off-the-plan building sale or lease purchase agreement if the application for the Certificate of land, ownership of land and property on land granted to the buyer or the lessee has been not sent to competent agencies. The transfer of off-the-plan building sale or lease purchase agreement must be made in writing and certified by the investor.

- The agreement transferee may retain rights and obligations of the buyer or the lessee. The investor must enable contracting parties to transfer the agreement and collect no remuneration related to the agreement transfer.

- The last agreement transferee shall be granted the Certificate of rights to use land, ownership of land property on land as prescribed in law on land.

- The agreement transfer prescribed in this Article shall not apply to social house sale or lease purchase agreements.

Mai Thanh Loi

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