Why Client Should Retain Real Estate Dispute Lawyers in Vietnam?

Why Client Should Retain Real Estate Dispute Lawyers in Vietnam?

Foreigners are becoming increasingly interested in investing and purchasing real estate as a result of changes in the law that are attracting foreigners to live and invest in Vietnam. However, the law regarding real estate ownership and transactions is complicated, particularly for foreigners, given that real estate is a valuable asset.

In Vietnam, the entire population owns land, with the State acting as the owner's representative and managing the land uniformly. Therefore, land users will have the right to use the land in Vietnam without private ownership. Foreigners are prohibited from owning land use rights in Vietnam under the Land Law of 2013. It only permits businesses with foreign investments to use land through leases or allocations.

According to the Law on Housing, foreigners are permitted to own homes in Vietnam even though they do not have rights to use land. Furthermore, the Law on Land Business has specific impediments for unfamiliar financial backers to direct land business in Vietnam and should meet the legitimate necessities.

To minimize risks, foreign investors investing in Vietnam who intend to use the land for business purposes, conduct real estate business in Vietnam, or simply purchase and own real estate in Vietnam should be aware of the legal provisions governing the conditions of implementation, orders, and procedures. In Vietnam, the assistance of real estate dispute lawyers will be valuable.

In Vietnam, real estate lawyers would be well-versed in the Land Law, Housing Law, Real Estate Law, and related regulations. In addition, they would have practical experience supporting real estate transactions, resolving disputes, and carrying out legal procedures in Vietnam. The real estate dispute lawyers in Vietnam could talk about the conditions for doing business in real estate and the restrictions on foreign organizations and individuals' land use rights in Vietnam. In order to better work with state agencies to obtain land use rights for businesses and individual home ownership rights, the foreigners could benefit from the assistance of lawyers upon request.

Real estate lawyers may also offer assistance with legal due diligence of the real estate in order to reduce clients' legal risk when carrying out real estate-related transactions like buying, selling, transferring, renting, and leasing. Before the developer and the people who are eligible to enter into the transaction, it is essential to evaluate the property's legal status, the owner, and whether the property is the subject of a dispute or additional government requirements. Likewise, the lawyers in Vietnam can encourage clients to draft or survey the arrangements, deal as well as the cycle to authorize the interaction to consent to the law in Vietnam.

ANT Lawyers, as a reliable law firm in Vietnam always follow up real estate dispute cases and their development to update clients on regular basis.  

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Conditions for Foreigners When Buying Houses in Vietnam

With open-door policies and a stable socio-economic situation, Vietnam is one of the countries with great attraction to foreign investors.  There are many foreign individuals and organizations come to Vietnam to live and work and a number of foreigners or foreign organizations wish to buy houses or apartments. Many real estate developers also wish to expand the customers base through selling houses and apartments to foreigners in Vietnam.

Real Estate Dispute Law Firm in Vietnam

However, according to current law, foreigners or foreign organizations can buy houses and apartment in Vietnam; and real estate developers could sell houses and apartments in Vietnam but must meet some conditions.

First of all, to be able to buy a house in Vietnam, foreign individuals and organizations must be one of the subjects that can own houses in Vietnam. Specifically, foreign organizations and individuals that are allowed to own houses in Vietnam include: (i) foreign organizations and individuals investing in housing construction under projects in Vietnam; (ii) foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign investment funds and foreign bank branches operating in Vietnam; (iii) foreigners whom are allowed to enter Vietnam. Accordingly, to be able to buy a house in Vietnam, these subjects must prove that they fully meet the conditions prescribed by law.

Specifically, foreign organizations and individuals investing in housing construction under projects in Vietnam must have an Investment Certificate and have houses built in the project according to regulations. For foreign organizations, they must set up company in Vietnam, have an investment certificate or a document related to being allowed to operate in Vietnam, issued by a competent Vietnamese state agency. Foreign individuals must be subject to permission to enter Vietnam and not be entitled to diplomatic and consular privileges and immunities.

Besides, depending on each different object, the documents proving the object and conditions for owning a house in Vietnam vary. For a foreign individual, s/he must have a valid passport with an entry verification stamp of the exit and entry management agency of Vietnam and not be eligible for special privileges and immunities. On the other hand, for foreign organizations, they must be eligible to own houses and have an Investment Registration Certificate or a document authorized by a competent Vietnamese agency to operate in Vietnam. In addition, these individuals and organizations should note that these documents must be valid at the time of signing the housing transactions.

Therefore, if organizations and individuals meet the above conditions, foreign individuals and organizations can purchase houses in Vietnam. However, it should be noted that foreign individuals can only own houses in Vietnam in the form of apartments or separate houses in an investment project to build commercial housing.

In addition, foreigners are also not allowed to purchase houses in areas that are subject of national defense and security under Vietnamese law. Further, foreign organizations and individuals are also limited in the number of ownership. Accordingly, foreign organizations and individuals are only allowed to own no more than 30% of the total number of apartments in an apartment building, and no more than 10% for an individual housing project of less than 2,500 units.

In general, purchasing houses for foreign individuals and organizations are subject to complicated legal conditions. Therefore, in order to ensure that the purchase of housing in Vietnam is in accordance with the regulations and to limit the risks arising, relevant individuals and organizations need to learn and seek legal advice and support from real estate dispute law firm in Vietnam

 

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What Are Rights and Obligations of Foreigners Owning Properties in Vietnam?

According to the current Vietnamese law, the ownership of houses in Vietnam by foreigners has changed significantly towards more openness. However, home ownership of foreigners and Vietnamese citizens are still different.

Foreign house ownership is allowed in commercial housing construction projects only (i.e., only in newly formed residential areas), not an area of national defense and security purpose. In case of house donation or inheritance of house not subject to this regulation, the foreigener only receives the value of that house.

The foreigners combined may not buy, rent and purchase, receive, inherit and own more than 30% of apartments in an apartment building; or not more than 250 houses of separate houses including villas, row houses in an area whose population is equivalent to a ward-administrative division

In an area whose population is equivalent to that of a ward, if there is a commercial housing construction project for sale or lease-purchase, the quantity of detached houses that may be owned by foreigner is specified below: where the quantity of detached houses of an project is fewer than 2,500, foreigner may own up to 10% of the houses of such project; where there is only one project whose quantity of detached houses is equivalent to 2,500 houses, foreigners may own up to 250 houses of them; where there are two or more projects where the total quantity of detached houses does not exceed 2,500 houses, foreigners may own up to 10% of the houses of each project. In case a house is donated or inherited in excess of the number of houses under this regulation, only the value of that house is entitled.

The foreigners are eligible for the homeownership as agreed in agreements on housing sale, lease purchase, gifting, or inheritance for not more than 50 years from the date of issuance of the Certificate and have can be extended further according to the Government’s regulations if the need arises; house ownership period must be specified in the Certificate.

In case a foreign individual marries a Vietnamese citizen or an overseas Vietnamese, he/she can own a stable, long-term house and has the same rights as a Vietnamese citizen.

The foreign organization are eligible for the homeownership as agreed in agreements on housing sale, lease purchase, gifting, or inheritance for not longer than duration stated in their Certificate of investment, including extension duration, the duration of the homeownership shall be determined from the day on which the organization is granted the Certificate and stated in such Certificate.

In addition, foreign organizations and foreign individuals permitted to enter Vietnam have the same obligations as Vietnamese citizens but must comply with the following provisions:

If the homeowner is a foreign individual, he/she is entitled to lease house for lawful purposes provided that he/she notifies the agency of district in charge of housing where the house is located of housing lease as prescribed in regulations of the Minister of Construction and pays taxes on housing lease as prescribed before leasing houses. If a foreign individual gets married to a Vietnamese citizen or an oversea Vietnamese, he/she qualifies for stable and long-term homeownership and has all rights of homeowner similarly to Vietnamese citizens.

If the homeowner is a foreign organization, its house is/are only provided for their employees but it is not allowed to use their house for lease, offices, or other purposes.

The above are provisions on rights and obligations of foreign organizations and individuals when owning properties in Vietnam.  For specific matters, please consult with property, real estate lawyers for legal advice for the property transaction from deposit agreement, house sales and purchase agreement, and registration of ownership with authorities for certificate of land use right, or house owernship certificate of to avoid property disputes in Vietnam, where the house ownership, land use rights are restricted for foreigners.

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