How Foreigners Could Buy Real Estate in Vietnam?

 

Can foreigners buy real estate in Vietnam?

Regulations on foreigners whom wish to buy real estate in Vietnam are regulated in Civil Code, Law on Land, Law on Housing, and other on decrees that guide the Law on Housing and related documents.

Can foreigners buy land in Vietnam?

For land, foreign individuals are not eligible to use land assigned or leased by the State, recognized land use rights, received transfer of land use rights. However, a foreign-invested enterprise could be allocated or leased land by the State, recognized land use rights, or received a land use right transfer. Foreign-invested enterprises that are assigned land by the State with the collection of land use levies to execute investment projects on the construction of houses for sale or for sale in combination with lease.

Can foreigners buy houses in Vietnam? or can foreigner buy apartments in Vietnam?

For housing, foreign entities eligible for the homeownership in Vietnam include: foreign entities who invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law; foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam (hereinafter referred to as foreign organization); foreign individuals who are allowed to enter Vietnam.

The foreign entities are eligible for the homeownership in Vietnam if they invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law; or buy, rent and purchase, receive, or inherit commercial housing including apartments and separate houses in the project for housing construction, except for areas under management relating to national defense and security as prescribed in regulations of the Government.

What conditions to meet when foreigners buy real estate in Vietnam?

Foreign organizations and individuals must have documents proving being the eligible subjects and meeting conditions to own houses in Vietnam. A foreign individual must have an unexpired passport bearing the entry seal of the Vietnam’s immigration authority and not given diplomatic immunity and privileges according to Ordinance on diplomatic immunity and privileges of diplomatic missions, consular offices, and representative authorities of international organizations in Vietnam. Foreign organizations must be subjects of owning houses in Vietnam which have investment registration certificate or a permission issued by a Vietnam’s competent authority for operation in Vietnam which is still unexpired at the time of housing transaction (hereinafter referred to as investment registration certificate).

A foreign entity shall not be granted a Certificate of the house and may only sell or offer it to another entity eligible to own housing in Vietnam in the case being: a foreign organization or individual receives a house as an inheritance or a gift which is located in an area in which foreign entities must not own houses, or the quantity of which exceeds the permissible limits; a foreign organization that does not operate in Vietnam, or a foreign individual who is not permitted to enter Vietnam, receives a house in Vietnam as a gift or an inheritance.

For specific situations, to avoid future dispute in house ownership arisen from the purchase, lease of property, house, land from the state, developer or other seller, or lessor it is important that the client check with dispute property lawyers in Vietnam for eligibility, conditions and other relevant matters.

How real estate lawyers in Vietnam could help client to buy real estate in Vietnam?

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest protection, risk mitigation and regulatory compliance. 

Read More

What Are New in Real Estate Trading Business From 2021?

 The Law on Investment 2020 takes effect from January 1, 2021 with many new highlights, including the amendment of conditions for real estate business in the Law on Real Estate Trading 2014.

Specifically, amending regulations on real estate business conditions in the Law on Real Estate Trading 2014 as follows: “Any organizations and individuals trading in real estate must set up enterprises or cooperatives (hereinafter referred to as an enterprise), except for the case specified in Clause 2 of this Article. ”

Clause 1, Article 10 of the 2014 Law on Real Estate Business stipulates that “Any organizations or individuals wish to conduct real estate trading shall set up enterprises or cooperatives (hereinafter referred to as enterprises) and have legal capital not smaller than VND 20 billion, excluding cases prescribed in Clause 2 of this Article.”

In addition, the Law on Investment 2020 also amends regulations on the competence to permit the transfer of all or a portion of real estate projects. For real estate projects approved by investors or granted an investment registration certificate in accordance with the Law on Investment, the competence and procedures for the transfer of all or a portion of the project comply with regulations of the Law on Investment. For real estate projects not falling into the above cases, the competence to permit the transfer of all or a portion of real estate projects is as follows: Provincial People’s Committee decides to allow the transfer of all or a portion of the real estate projects for projects decided by the provincial People’s Committee to invest; The Prime Minister shall decide to permit the transfer of all or a portion of real estate project to projects for which the investment is decided by the Prime Minister.

In case organizations, households or individuals sell, transfer, lease, or lease purchase real estate on a small scale, rarely, it is not required for real estate enterprise to be set up, but they must declare and pay taxes according to the provisions of law.

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 have law firm in Hanoi, law firm in Ho Chi Minh City and law firm in Da Nang. 

Read More

Real Estate Dispute Law Firms in Vietnam Discuss Land Disputes

 

What Procedures for Conciliation and Settlement of Land Dispute?

Land disputes or real estate disputes or property disputes in Vietnam are among the most complicated disputes which arise regularly in daily life in Vietnam. Resolving these kinds of disputes might take time and the lawyers at real estate dispute law firms in Vietnam could help identify the root causes and propose suitable approach for conciliation and settlement.

What types of land disputes in Vietnam?

The disputes related to land, real estate and property are normally of high value and are very diverse which may be dispute over land use right, ownership of house attached to land use right, disputes over rights to land usage rights resulted from inheritance, disputes on division of property during divorce, disputes of transfer and transformation transaction, leasing, sub-leasing, mortgage relating to property or land use rights.  

What are land dispute resolutions in Vietnam?

Land use right dispute means a dispute over the rights and obligations of land users among two or more parties in a land use right relationship.

In case of conflict over land, what should parties do to settle dispute? If negotiation or mediation work, that is great.  What if the alternative dispute resolutions do not help?  Hence land dispute can be settled at court or settlement procedures at state administrative agencies.

Firstly, for some type of land disputes, conciliation procedure at commune-level People’s Committee of the locality where the disputed land is located is mandatory condition and procedure.

In particular, if conciliation by parties cannot be achieved, the parties may send a petition for conciliation to the commune-level People’s Committee of the locality where the disputed land is located.

The conciliation procedure carried out at the commune-level People’s Committees shall be completed within 45 days from the date which the commune-level People’s Committees receives a petition for settlement of land dispute. The conciliation may take place only when all the disputing parties are present. If any of the disputing parties is absent for the second time, the conciliation shall be regarded as unsuccessful.

If the conciliation at a commune-level People’s Committee fails, land dispute shall be settled according to one of the following two cases.

If the land dispute in which the party possesses a certificate or any of the papers prescribed in Article 100 of Land law and the dispute over assets attached to land shall be settled by the People’s Court.

If the land dispute falls under cases which the party does not possess above papers, the parties may choose between the following two options of settlement: filing a written request for dispute settlement with a competent People’s Committee or filing a lawsuit with a competent People’s Court in accordance with the law on civil procedures.

For the later, when the party choose to settle at competent People’s Committee, the chairperson of the district-level People Committee is responsible for the settlement of disputes among households, individuals and communities. If the parties disagree with the settlement decision, they are entitled to claim with the chairperson of the provincial-level People’s Committee or to file a lawsuit at a People’s Court in accordance with the law on administrative procedures.

In case one party is an organization, a religious institution, an overseas Vietnamese or a foreign-invested enterprise, the chairperson of the provincial-level People’s Committee is responsible for the settlement. If the parties disagree with the settlement decision, they are entitled to file claim with the Minister of Natural Resources and Environment or to file a lawsuit with a People’s Court in accordance with the law on administrative procedures.

It should be noted that the legally effective decision on dispute settlement must be strictly abided by the parties. If the parties fail to comply, the decision shall be enforced.

The settlement of land disputes in which the disputing parties have no certificate or any of the papers prescribed in the Land Law and the Decree detailing a number of articles of the land law shall be based on the following grounds:

Evidences on the origin and use process of the land presented by the disputing parties;

Actual land areas currently used by the parties in addition to the disputed land area and the average land area per household member in the locality;

Conformity of the current use status of the disputed land with land use plans already approved by competent state agencies;

Preferential treatment policies toward persons with meritorious services to the State; Regulations on land allocation, land lease and land use rights recognition.

How lawyers at real estate dispute law firms in Vietnam could help?

In Vietnam, the people do not own land.  Only land usage rights can be bought and sold. As said, disputes on land, property, real estate in Vietnam might be complicated due to the complexity of law and related regulations on land, the culture of land usage in Vietnam over the time.

Some types of land disputes must be reconciled at commune-level People’s Committee of the locality where the disputed land is located is mandatory condition and procedure. For other types of property and real estate disputes, the disputants could file the claim petition at court immediately. Understanding the difference of dispute resolution might be an issue. It is suggested to consult with lawyers at real estate dispute law firms in Vietnam for advice and representation at early stage for dispute avoidance or dispute resolution.

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://t.co/c0yxjS9fF1

Read More

Real Estate Dispute Law Firms in Vietnam Discuss Land Disputes

 

What Procedures for Conciliation and Settlement of Land Dispute?

Land disputes or real estate disputes or property disputes in Vietnam are among the most complicated disputes which arise regularly in daily life in Vietnam. Resolving these kinds of disputes might take time and the lawyers at real estate dispute law firms in Vietnam could help identify the root causes and propose suitable approach for conciliation and settlement.

What types of land disputes in Vietnam?

The disputes related to land, real estate and property are normally of high value and are very diverse which may be dispute over land use right, ownership of house attached to land use right, disputes over rights to land usage rights resulted from inheritance, disputes on division of property during divorce, disputes of transfer and transformation transaction, leasing, sub-leasing, mortgage relating to property or land use rights.  

What are land dispute resolutions in Vietnam?

Land use right dispute means a dispute over the rights and obligations of land users among two or more parties in a land use right relationship.

In case of conflict over land, what should parties do to settle dispute? If negotiation or mediation work, that is great.  What if the alternative dispute resolutions do not help?  Hence land dispute can be settled at court or settlement procedures at state administrative agencies.

Firstly, for some type of land disputes, conciliation procedure at commune-level People’s Committee of the locality where the disputed land is located is mandatory condition and procedure.

In particular, if conciliation by parties cannot be achieved, the parties may send a petition for conciliation to the commune-level People’s Committee of the locality where the disputed land is located.

The conciliation procedure carried out at the commune-level People’s Committees shall be completed within 45 days from the date which the commune-level People’s Committees receives a petition for settlement of land dispute. The conciliation may take place only when all the disputing parties are present. If any of the disputing parties is absent for the second time, the conciliation shall be regarded as unsuccessful.

If the conciliation at a commune-level People’s Committee fails, land dispute shall be settled according to one of the following two cases.

If the land dispute in which the party possesses a certificate or any of the papers prescribed in Article 100 of Land law and the dispute over assets attached to land shall be settled by the People’s Court.

If the land dispute falls under cases which the party does not possess above papers, the parties may choose between the following two options of settlement: filing a written request for dispute settlement with a competent People’s Committee or filing a lawsuit with a competent People’s Court in accordance with the law on civil procedures.

For the later, when the party choose to settle at competent People’s Committee, the chairperson of the district-level People Committee is responsible for the settlement of disputes among households, individuals and communities. If the parties disagree with the settlement decision, they are entitled to claim with the chairperson of the provincial-level People’s Committee or to file a lawsuit at a People’s Court in accordance with the law on administrative procedures.

In case one party is an organization, a religious institution, an overseas Vietnamese or a foreign-invested enterprise, the chairperson of the provincial-level People’s Committee is responsible for the settlement. If the parties disagree with the settlement decision, they are entitled to file claim with the Minister of Natural Resources and Environment or to file a lawsuit with a People’s Court in accordance with the law on administrative procedures.

It should be noted that the legally effective decision on dispute settlement must be strictly abided by the parties. If the parties fail to comply, the decision shall be enforced.

The settlement of land disputes in which the disputing parties have no certificate or any of the papers prescribed in the Land Law and the Decree detailing a number of articles of the land law shall be based on the following grounds:

Evidences on the origin and use process of the land presented by the disputing parties;

Actual land areas currently used by the parties in addition to the disputed land area and the average land area per household member in the locality;

Conformity of the current use status of the disputed land with land use plans already approved by competent state agencies;

Preferential treatment policies toward persons with meritorious services to the State; Regulations on land allocation, land lease and land use rights recognition.

How lawyers at real estate dispute law firms in Vietnam could help?

In Vietnam, the people do not own land.  Only land usage rights can be bought and sold. As said, disputes on land, property, real estate in Vietnam might be complicated due to the complexity of law and related regulations on land, the culture of land usage in Vietnam over the time.

Some types of land disputes must be reconciled at commune-level People’s Committee of the locality where the disputed land is located is mandatory condition and procedure. For other types of property and real estate disputes, the disputants could file the claim petition at court immediately. Understanding the difference of dispute resolution might be an issue. It is suggested to consult with lawyers at real estate dispute law firms in Vietnam for advice and representation at early stage for dispute avoidance or dispute resolution.

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://t.co/c0yxjS9fF1

Read More

What Are New Conditions on Real Estate Purchase and Sale in 2022?

 Real estate business activities have a great influence on socio-economic development.  Accordingly, in order to ensure the legal framework for the current real estate business activities, the Government has issued Decree 02/2022/ND-CP detailing the implementation of a number of articles of the Law on Real Estate Business (“Decree 02/2022/ND-CP”) in order to promptly amend and supplement inadequate regulations to be consistent with reality. In which, conditions for the transfer of contracts of purchase and sale, lease-purchase of houses and construction works are mentioned.

The demand for the transfer of purchase and sale contracts, lease-purchase of houses, real estate, construction works on the market is at a high level, although there are no regulations on the transfer of contracts for the sale of non-residential real estate not to be formed in the future. Therefore, there is no legal basis to carry out these transactions in reality. Therefore, Decree 02/2022/ND-CP has had a number of amendments and supplements and has overcome some limitations compared to the past, which is expected to solve problems and inadequacies.

Accordingly, Decree 02/2022/ND-CP has combined conditions for transfer of contracts for purchase and sale of future houses and conditions for transfer of lease-purchase contracts for existing houses and construction works with specific regulations.

Firstly, the transfer of the contract requires a purchase and sale contract or a lease purchase contract made in accordance with regulations. Accordingly, these contracts must ensure compliance with the provisions of the transfer agreement form for each transferred real estate object, whether it is a Contract for Sale, Purchase, Lease and Purchase of an apartment, or tourist apartments (Condotel), office apartments combined with accommodation (Officetel)… are valid and allowed to be used for transfer. In addition, for cases where the parties have signed a contract before the effective date of Decree 02/2022/ND-CP, the signed contract must be present. Therefore, when transferring these types of contracts, the parties should pay attention to ensure the legality of the respective contract in terms of form and time of establishment.

Secondly, the transfer contract must be in the category that has not yet submitted a dossier to request a competent state agency to issue a certificate of land use rights, ownership of houses and other land-attached assets. This provision has been mentioned in the previous regulations for the transfer of real estate contracts formed in the future. Up to now, this is still a necessary regulation to ensure that the handling of licensing procedures does not overlap, eliminating the risk that a real estate bears two or more certificates for the same object.

Thirdly, the contract of sale, purchase, lease-purchase of houses and construction works must be free of disputes and lawsuits. Accordingly, the disputed contract will not be used to transfer to a third party. This provision is consistent with the provisions on prohibition of transferring property rights to the disputed property. Therefore, in order to transfer the contract, the parties need to settle the dispute in advance to have a basis for the transfer of the contract. In many complicated cases, the real estate dispute lawyers need to be consulted for proper dispute solutions.

Fourthly, houses and construction works that are the subject of purchase and sale or lease-purchase contracts must not be subject to distraint or mortgage to secure the performance of obligations as prescribed by law. Recently, the phenomenon of transferring these contracts has increased with seriously violated the provisions of the law, making it difficult for relevant competent authority to handle, otherwise causing damages to the transferee without understanding the legal issues for the transferor in the contract. However, with the principle of respecting the agreement of the parties, the law still allows the assignment of the contract in this case if the mortgagee agrees and this consent must be recorded specifically to avoid disputes later.

It can be seen that the highlight of Decree 02/2022/ND-CP has initially solved the inadequacies in the transfer contract for tourist apartments (Condotel), office apartments (Officetel) that help relevant competent authority have a legal basis to handle the requirements.  Further, Decree 02/2022/ND-CP has contributed to building a clearer mechanism so that the participants can actively comply with regulations on effective real estate business contracts, minimizing the contract disputes in Vietnam, creating a safer and more sustainable real estate market in Vietnam.

Readmore: https://antlawyers.vn/update/what-are-new-conditions-on-real-estate-purchase-and-sale-in-2022.html

Read More