Real Estate Dispute Lawyers in Vietnam Could Help with Property Disputes

 

What Are Real Estate Issues During Transaction: How Real Estate Dispute Lawyers in Vietnam Could Help?

The buyer and seller would neglect to use lawyers until real estate dispute lawyers in Vietnam are needed.

The real estate market is always an attractive market with a large source of potential speculative profits for investors.  Because real estate transaction is always high in value, and buying a property for most people is always a life time important decision, and many times with the financial support from the bank, therefore in developed country, real estate lawyers are always involved in all steps of the transaction to ensure the legitimate transfer of the property.  When dispute arise, real estate dispute lawyers in Vietnam will then be referred to for advice and representation.

Disputes arisen from deposit agreement, sales and purchase agreement in Vietnam

In Vietnam, in reality, many real estate transitions are conducted by the buyer and sellers themselves without real estate lawyers in Vietnam and there are many disputes arisen from the transactions in regard to property deposit agreement, property sales and purchase agreement between real estate developer and buyer for a new property, or between buyer and the previous property owner for resale property.

Residential property is one of the common types of real estate traded, so when joining in transactions related to property, it is necessary to ensure the conditions for property transfer.  The related parties need to comply and meet the requirements of the above conditions for a successful transfer transaction.

Conditions for the property to be transferred: free from claim or dispute from other parties

Conditions for property transfer transaction include the following basic points: the transferred property is not in a dispute, complaint, or claim about ownership; the transferred property shall be within the property ownership period, in the case of property owners with a definite term; the transferred property is not distrained for judgment enforcement or distrained to comply  legally effective administrative decisions of competent state agencies; the transferred property is not subject to a decision on land recovery or a notice of house clearance or demolition issued by a competent agency.

For the conditions on the parties to the property transaction, the property transferor needs to meet the following conditions:

Seller of the property has the right to sell or not?

The transferor is the owner of the property or the person permitted or authorized by the owner to carry out the transaction on property according to the provisions of law;

In case of transfer of a commercial house purchase and sale contract, the transferor shall be the person who bought the house from the investor or the person who has received the transfer of the house purchase and sale contract;

If the transferor is an individual, this person shall have full civil act capacity to carry out transactions on housing under the provisions of civil law;

If the transferor is an organization, it shall have legal status, unless the organization donates a house of gratitude or charity.

Can the buyer meet conditions to buy the property?

At the same time, the transferee shall also meet the conditions, specifically including the following conditions:

If the transferee is a domestic individual, this person shall have full civil act capacity to conduct property transactions under civil law and it is not required to them to have permanent residence registration in the place where the housing transferred is located;

If the transferee is a foreign individual or overseas Vietnamese, this person shall have full civil act capacity to carry out transactions on housing under Vietnam law. In addition, this person must be eligible to own houses in Vietnam according to the provisions of law and it is not required to them to have temporary residence registration or permanent residence registration at the place where the housing transferred is located;

If the transferee is an organization, it shall have legal status and not depend on the place of business registration and establishment; if it is a foreign organization, it must be eligible to own a house in Vietnam according to the provisions of law; if the organization is authorized to manage to house, it must have the function of providing real estate services and be operating in Vietnam under the law on real estate business.

What are potential disputes during the property transaction?

There are also disputes arisen from situations in particular:

The market price of the property increase or decrease during the time of transaction and one of the party would like to pull out of the transaction.

The sales and purchase of property is completed and registered at the authority but the seller continue to live there refuse to hand-over the property for some reasons for some unknown time.

The developer might change the design of the property as compared to the property details described in the sales and purchase agreement.  

The quality of the property do not meet the specifications in the sales and purchase agreement.

Further, there are fraudulent acts in sales and purchase of property as well which one could also need to carefully pay attention to when entering into property transaction.

How real estate dispute lawyers in Vietnam could help?

As said, there are many situation that dispute could arise in a real estate transaction. It is important to engage real estate law  firm specializing in real estate transaction for buying and selling property in Vietnam to avoid potential disputes and protect their best interest for seller and safeguard investment for buyer. When encountering dispute, the buyer or seller need to engage real estate dispute lawyers in Vietnam to handle dispute resolution.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

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Real Estate Litigation Lawyers in Vietnam: Navigate Complexities

 

The Crucial Role of Real Estate Litigation Lawyers in Vietnam: Navigating Complexities and Safeguarding Property Rights

Real estate transactions in Vietnam are on the rise, driven by the country’s burgeoning economy and increasing urbanization. However, navigating the complex legal landscape of the Vietnam real estate market can be challenging for both domestic and international investors.

Real estate litigation lawyers play a critical role in this context, offering expert guidance and representation to safeguard property rights and resolve disputes effectively. This article delves into the multifaceted role of real estate litigation lawyers in Vietnam, exploring how they assist clients in various aspects of real estate transactions and contribute to ensuring a transparent and secure property market.

Understanding the Vietnamese Real Estate Market

The Vietnam real estate market is diverse and dynamic, encompassing residential, commercial, industrial, and agricultural properties. With the increasing demand for land and properties, real estate transactions involve various stakeholders, including buyers, sellers, developers, landlords, tenants, and government agencies.

Understanding the legal nuances and intricacies of real estate transactions is crucial to ensure compliance with laws and regulations, minimize risks, and protect property rights. Real estate litigation lawyers in Vietnam possess in-depth knowledge of Vietnam real estate laws, regulations, and market practices, making them well-equipped to guide clients through every step of the real estate process.

Assistance with Contract Drafting and Review

One of the primary roles of real estate litigation lawyers in Vietnam is to provide expert assistance in drafting and reviewing real estate contracts. Whether it’s a sale and purchase agreement, lease agreement, development agreement, or joint venture contract, these lawyers ensure that the contracts are legally sound, protect their clients’ interests, and align with Vietnam real estate laws. They meticulously analyze contractual terms, identify potential risks, and negotiate on behalf of their clients to secure favorable terms and conditions. Additionally, real estate litigation lawyers in Vietnam advise clients on compliance with regulatory requirements, disclosure obligations, and the use of standard industry terms.

Property Due Diligence

Before engaging in any real estate transaction, thorough property due diligence is essential to assess the property’s legal status, ownership, and potential risks. Real estate litigation lawyers in Vietnam conduct comprehensive due diligence investigations, examining land titles, encumbrances, permits, and zoning regulations. This diligence helps clients make informed decisions about the viability and potential risks associated with a property investment. Identifying any legal issues or discrepancies beforehand allows clients to mitigate risks and address potential challenges proactively.

Navigating Land Use and Ownership Issues

In Vietnam, land use rights are a complex aspect of real estate transactions. Real estate litigation lawyers in Vietnam assist clients in understanding the various types of land use rights, such as leasehold, freehold, and land use rights for foreign investors. They provide guidance on land use planning, land allocation, and conversion procedures. Furthermore, these lawyers help clients navigate land ownership disputes, boundary disputes, and issues related to the acquisition of land-use rights. Their expertise in land laws and regulations ensures that clients’ property rights are legally protected, and they can confidently proceed with their real estate investments.

Dispute Resolution and Litigation

Disputes in real estate transactions are not uncommon, and when conflicts arise, real estate litigation lawyers in Vietnam become crucial advocates for their clients. These lawyers are experienced in handling a wide range of real estate disputes, such as breach of contract claims, eviction actions, title disputes, construction disputes, and enforcement of property rights. They assist clients in exploring alternative dispute resolution methods, such as negotiation, mediation, and arbitration, to reach amicable settlements and avoid costly litigation when possible. However, if litigation becomes necessary, real estate litigation lawyers in Vietnam represent their clients in court proceedings, presenting compelling arguments and evidence to protect their clients’ property rights and financial interests.

Regulatory Compliance and Government Approvals

Real estate projects often require various government approvals and permits. Real estate litigation lawyers in Vietnam are well-versed in the regulatory landscape and assist clients in obtaining the necessary approvals, permits, and licenses from relevant authorities. These lawyers navigate the bureaucratic process, ensuring compliance with construction regulations, environmental laws, and other legal requirements. Their expertise expedites the approval process, enabling clients to proceed with their real estate developments and transactions in a timely and compliant manner.

How Real Estate Litigation Lawyers in Vietnam Could Help?

In conclusion, real estate litigation attorneys in Vietnam play an indispensable role in the country’s thriving property market. With their deep knowledge of Vietnamese real estate laws, regulations, and market practices, they guide clients through the complexities of real estate transactions, protect property rights, and resolve disputes effectively.

Whether assisting with contract drafting, due diligence, land use issues, dispute resolution, regulatory compliance, or government approvals, real estate litigation lawyers contribute significantly to ensuring a transparent and secure real estate market in Vietnam. Their expert guidance and representation are essential for investors seeking success and stability in this vibrant and rapidly evolving sector while doing business in Vietnam.

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Understanding Decree No. 96/2024/ND-CP on Law on Real Estate Business in Vietnam

 The Vietnam government recently enacted Decree No. 96/2024/ND-CP, which provides detailed regulations for certain aspects of the Law on Real Estate Business in Vietnam. This decree became effective from August 1, 2024. Its aims is to regulate the market, curb speculation, and ensure fair practices.

The following explores some of aspects of real estate business in Vietnam, the requirements for real estate transactions, and the broader impact on the Vietnamese real estate market.

Key Provisions of Decree No. 96/2024/ND-CP

Transaction Limits for Small-Scale Real Estate Businesses

Under Decree No. 96/2024/ND-CP, small-scale real estate operators are limited to conducting no more than ten transactions per year, with the total value of these transactions not exceeding VND 3,000 billion. This specific regulation is aimed at individuals engaged in real estate activities without forming a business entity.

It should also be noted that individuals operating small-scale real estate businesses, whom are regular people buying houses or selling houses in Vietnam are not required to establish a real estate enterprise in Vietnam but must declare and pay taxes according to the law. This provision simplifies the administrative burden for small-scale operators while ensuring they contribute to the tax system.

Exemption from Establishing a Real Estate Business

For individuals who do not meet the criteria for small-scale business, the Law on Real Estate Business in Vietnam mandates the establishment of a real estate enterprise in Vietnam, cooperative, or union of cooperatives. However, those qualifying as small-scale operators are exempt from this requirement, provided they adhere to the transaction limits.

Specific transaction limits: The decree specifies that small-scale real estate transactions should not exceed 300 billion VND per contract, and the total number of transactions should not surpass ten per year. This dual criterion ensures that both the frequency and the financial scale of transactions are regulated.

Tax Declaration and Payment

All individuals engaged in real estate business must declare and pay taxes according to Vietnamese law. This requirement ensures transparency and accountability, contributing to the overall integrity of the real estate market.

Real Estate Brokerage Regulations

Certification Requirement

Decree No. 96/2024/ND-CP mandates that all real estate brokers must obtain certification and operate in association with a real estate exchange, brokerage company, or consulting and management company. This regulation aims to professionalize the brokerage sector and eliminate unlicensed, freelance brokers from the market.

Implications for real estate brokers: For a long time, when the real estate market is booming, there are plenty of traders whom call themselves real estate brokers. When market is cold, such people leave the work force. They change jobs because the competition is too fierce, they do not have specialized skills in real estate business and they are not committed professionals. Now thing changes. The certification requirement ensures that brokers possess the necessary knowledge and skills to conduct real estate transactions effectively. It also ties brokers to recognized entities, fostering greater accountability and professionalism within the industry.

Impact on Freelance Brokers

Freelance brokers, who previously operated independently, are now required to cooperate with licensed entities. This shift is expected to reduce instances of unethical practices and enhance consumer protection.

Mitigating Real Estate Speculation

Addressing Speculation and Price Inflation

One of the primary objectives of the Law on Real Estate Business in Vietnam which is guided by Decree No. 96/2024/ND-CP is to curb speculation and price inflation in the real estate market. By limiting the number of transactions and imposing strict regulations on brokers, the decree aims to create a more stable and transparent market environment.

Impact on Market Stability

The transaction limits and regulatory requirements are expected to deter speculative activities that often lead to artificial price inflation. This stability benefits genuine buyers and sellers, promoting sustainable growth in the real estate sector.

Prohibition of Land Subdivision Sales

The Law on Real Estate Business in Vietnam, reinforced by Decree No. 96/2024/ND-CP, prohibits the subdivision and sale of land for individual housing in special urban areas (categories I, II, and III). This measure aims to prevent the fragmentation of urban land, which has been a significant driver of speculative activity.

Long term market benefits: By restricting land subdivision, the decree seeks to maintain orderly urban development and prevent the speculative practices that can distort land prices. In the long run, this approach is expected to lead to more balanced and sustainable urban growth.

Mandatory Bank Payments for Real Estate Transactions

Eliminating Dual Pricing

Law on Real Estate Business in Vietnam requires all real estate transactions to be conducted through bank payments. This measure is designed to eliminate the practice of “dual pricing,” where different prices are reported for tax evasion purposes which one contract states a price for actual transaction and another contract states a different lower price for tax declaration.

Building a Transparent Market

Mandatory bank payments for real estate transactions help build a transparent market by creating a verifiable record of all transactions. This transparency is crucial for building trust and integrity in the real estate sector.

Advantages for Data Collection

Bank-based transactions facilitate the creation of a comprehensive real estate database, providing valuable data for market analysis and policy-making. This data can be used to monitor market trends, detect irregularities, and support informed decision-making by regulators and industry stakeholders.

Last Few Words

Decree No. 96/2024/ND-CP which reinforce the Law on Real Estate Business in Vietnam represents a significant step towards regulating real estate businesses in Vietnam. By setting clear transaction limits, requiring tax declarations, and mandating certification for brokers, the decree aims to curb speculation and enhance market transparency.

These measures collectively aim to foster a healthier and more transparent real estate market in Vietnam, benefiting both industry participants and the broader economy. By understanding and adhering to these regulations, individuals and businesses can contribute to a more stable and equitable real estate sector.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Readmore: https://antlawyers.vn/update/law-on-real-estate-business-in-vietnam-96.html

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7 Highlights in Recently Passed Vietnam Real Estate Law

 On November 28, 2023, with 465 out of 494 delegates participating in the vote of approval (making up a percentage of 94.13%), the National Assembly officially passed the amended Vietnam real estate law, which will come into effect on January 1, 2025.

This new Vietnam real estate law is a significant legislative project aimed at adapting to the development trends of technology and enhancing the efficiency of real estate resource management.

The following article will provide basic information on some key points of this Vietnam real estate law.

Types of Real Estates Allowed for Transaction in the Vietnam Real Estate Law:

The types of real estates permitted for real estate transaction under the amended Vietnam real estate law include:

1. Existing residential properties and those to be formed in the future.

2. Existing construction works and those to be formed in the future, including constructions serving purposes such as education, healthcare, sports, culture, offices, commerce, services, tourism, accommodation, industry, and mixed-use constructions.

3. Land use rights with existing technical infrastructure in real estate projects.

4. Real estate projects.

Additional Principles in Real Estate Service Business, Real Estate Exchange Activities in the Vietnam Real Estate Law:

The 2023 Vietnam real estate law supplements principles in real estate service business, the organization and operation of real estate exchanges, real estate transactions through real estate exchanges, conditions for managers operating real estate exchanges.

Addition of Conditions for Real Estate Consulting Services, Real Estate Management Services in the Vietnam Real Estate Law:

The 2023 Vietnam real estate law adds conditions for organizations and individuals engaging in real estate consulting services and real estate management services, including rights and obligations of parties involved in real estate consulting services, the scope, and principles of real estate consulting and management services.

Regulations on Real Estate Business Rights for Vietnamese Nationals Residing Abroad in the Vietnam Real Estate Law:

For Vietnamese nationals residing abroad, in order to ensure consistency with the spirit of the Land Law (amended draft), the National Assembly Standing Committee has revised the regulations. Vietnamese nationals residing abroad, as defined by Vietnam nationality laws, have the right to engage in real estate business in Vietnam, including buying, renting, or leasing residential and construction properties, similar to Vietnamese citizens within the country. The existing policies for overseas Vietnamese not recognized as Vietnamese citizens remain unchanged.

Regulations on Conditions for Future Residential and Construction Projects in the Vietnam Real Estate Law:

The National Assembly Standing Committee suggests that the government regulates in detailed decrees under the Vietnam real estate law, directing provincial-level state management agencies for real estate business to assess the conditions of housing projects for business and respond in writing to investors regarding the eligibility of housing for sale or lease, taking responsibility for the issued documents.

Regulations on Down Payments in Real Estate Transactions in the Vietnam Real Estate Law:

Regarding down payment regulations in residential and construction business transactions in the future, to ensure an accurate representation of the essence of down payments and reduce risks for buyers, especially the weaker party, the amended draft Vietnam real estate law states that project developers can only collect a deposit of up to 5% of the sale or lease price for residential properties, construction works, or the floor area within the construction project. This payment can only be collected from customers when the residential or construction project meets all the conditions specified by this Vietnam real estate law.

The deposit agreement must clearly state the sale or lease price for residential properties, construction works, or the floor area within the construction project.

Real estate projects on paper can only be put up for real estate transaction when there is one of the documents related to land use rights, such as land allocation decisions, land use right certificates, ownership of residential properties, and land use rights…

Regulations on Payment for Real Estate Sales in Future Residential Business in the Real Estate Law:

Regarding payments in transactions for houses to be formed in the future, the new Vietnam real estate law has stipulated that customers will pay 95% of the contract value, with the remaining amount paid when they are granted the land use right certificate and ownership of the property.

As a result, customers retain a portion of the contract value during the waiting period for the issuance of the land use right certificate and property ownership.

On the part of the project developer, they must fulfill financial obligations (land rent, taxes, fees related to land) before transferring the entire or part of the real estate project.

Additionally, the project developer must have a decision on land use, lease, or permission to change the land use purpose, but not necessarily a land use right certificate for the entire or part of the transferred project.

How Real Estate Attorney in Vietnam Could Help Buyer or Seller under Vietnam Real Estate Law?

A real estate attorney in Vietnam can play a crucial role in facilitating and safeguarding the interests of both buyers and sellers in real estate transactions under the Vietnam real estate law. 

Attorney For Real Estate Buyers in Vietnam:

1. Legal Due Diligence:

• Conducting thorough legal due diligence on the property to ensure there are no legal issues or disputes associated with it.

• Verifying the ownership status and the legitimacy of the seller.

2. Document Review:

• Reviewing and interpreting contracts, agreements, and other legal documents associated with the property transaction.

• Ensuring that all necessary documents, such as land use rights certificates, are in order.

3. Negotiations and Contract Drafting:

• Assisting in negotiations with the seller to secure favorable terms.

• Drafting or reviewing the purchase agreement to protect the buyer’s interests and ensure legal compliance.

4. Title Search:

• Verifying the property’s title and ensuring it is clear of any encumbrances or legal issues.

• Confirming that the seller has the legal authority to sell the property.

5. Financial Considerations:

• Advising on financial aspects, such as taxes and fees associated with the property purchase.

• Assisting in understanding and complying with financial regulations related to real estate transactions.

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6. Legal Representation:

• Providing legal representation in case of any real estate disputes in Vietnam under Vietnam real estate law or legal challenges that may arise during or after the transaction.

Attorney For Real Estate Sellers in Vietnam:

1. Preparation of Legal Documents:

• Assisting in the preparation of all necessary legal documents for the sale of property in Vietnam.

• Ensuring compliance with local real estate laws and regulations.

2. Disclosure Requirements:

• Advising on the legal obligations of sellers to disclose relevant information about the property.

• Helping sellers avoid legal liabilities by ensuring proper disclosure.

3. Negotiations and Contract Drafting:

• Negotiating on behalf of the seller to achieve favorable terms.

• Drafting or reviewing the sales agreement to protect the seller’s interests.

4. Title Clearance:

• Resolving any issues related to the property’s title to ensure a clear transfer to the buyer.

• Clearing any encumbrances that may affect the sale.

5. Tax Implications:

• Providing guidance on tax implications associated with the sale of the property.

• Advising on strategies to minimize tax liabilities.

6. Closing Procedures:

• Facilitating the closing process and ensuring that all legal requirements are met.

• Overseeing the transfer of ownership and ensuring proper registration.

7. Legal Representation:

• Offering legal representation in case of real estate disputes in Vietnam under Vietnam real estate law or challenges that may arise from the sale.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Readmore: https://antlawyers.vn/update/highlights-in-new-vietnam-real-estate-law.html

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