Requirements pertaining to parties in the housing transactions in Vietnam

Requirements pertaining to parties in the housing transactions in Vietnam (Internet image)

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

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

According to Article 119 of the Law on Housing 2014, the requirements pertaining to parties in the housing transactions in Vietnam 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 this Law 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 this Law 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 this Law; 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.

2. Procedures for entering into housing transactions in Vietnam

Pursuant to Article 120 of the Law on Housing 2014, the procedures for entering into housing transactions are as follows:

- Any parties entering into housing transactions shall conclude agreements on housing sale, lease, lease purchase, giving, exchange, mortgage, capital contribution, lending, permission for stay, or authorization of housing management or documents on transfer of agreement on commercial housing sale (hereinafter referred to as housing agreement) according to regulations prescribed in Article 121 of the Law on Housing 2014; regarding the organization giving house of gratitude, only document on giving is required.

- The contracting parties shall agree to choose a party to request the competent agency to grant the Certificate of housing; regarding housing which is bought or leased and purchased from the investor, the investor must complete the procedures for the Certificate issued to the buyer or the lessee by the competent agency, unless the buyer or the lessee wishes to completes the procedures themselves.

- If the competent agency grants the Certificate to the person who buys, rents and purchases housing, receives housing as giving, exchange, or capital contribution together with lawful residential land where that housing is located, it shall concurrently recognize the homeownership and rights to use residential land.

Ho Quoc Tuan

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