According to the law, when buying an apartment; the buyer will be granted a certificate of land use rights; ownership of houses and other assets attached to the land, or what people often call the “pink book”. However, in fact, there are many cases of apartment buildings that have not been issued with pink books but have been put into transfer transactions. The status of apartments without pink books can be caused by many reasons such as: the project investor does not enough legal documents; or the papers are not transparent; the investor has a dispute over issues such as: site clearance, compensation level for people in the liberated area; Investors use pink books to borrow capital from banks. LSX Lawfirm will give you an article about: “Procedures for buying an apartment without a land use right certificate”, as follows:
Legal grounds
– Law on Housing No. 65/2014/QH13
– Circular No. 19/2016/TT-BXD Guiding the implementation of a number of contents of the Law on Housing and Decree No. 99/2015/ND-CP detailing and guiding the implementation of a number of articles of the Law on Housing .
Conditions for buying an apartment without a land use right certificate
According to Article 118 of the Law on Housing 2014; one of the conditions for buying and selling a house is to have a Certificate in accordance with the law.
However, in many cases, even if they do not have a Certificate (Pink Book), they still allowed to buy and sell houses. At that time, instead of carrying out the procedure to transfer the name of the book; for the apartment that lacks the pink book, the contract of sale and purchase of the apartment transferred. Specifically, the provisions are as follows:
Clause 2, Article 118 of the Law on Housing 2014 stipulates that housing transactions do not require to have a certificate; in which there is a case of transfer of a contract of purchase; and sale of a commercial house built in an investment project on housing construction housing; including cases; where the house has been handed over from the investor but has not yet submitted an application to a competent state agency for a Certificate for that house.
In addition
The house purchase and sale transaction, the transfer of a commercial sale and purchase contract are specified in Clause 1; Article 123 of the Law on Housing: In case the buyer of a commercial house of the investor has not yet submitted an application to the agency; A competent state agency shall grant a Certificate for such house and, upon request; may transfer the house purchase and sale contract.
Specific conditions for the transfer of apartment building sale and purchase contracts are specified in Article 32 of Circular 19/2016/TT-BXD as follows:
- Organizations and individuals that buy houses from investors of commercial housing construction projects that have not yet received the house or have received the house have the right to transfer the house purchase and sale contract to the organization or individual other; when the application file for the Certificate do not submitt to the competent state agency.
- Organizations and individuals that receive the transfer of a commercial house sale and purchase contract have the right to transfer this contract to another organization; or individual when the application for a Certificate do not submitt to the competent state agency. permission.
- When transferring a house purchase and sale contract; the contract transferred according to each individual house or each apartment. In case the purchase and sale contract with the investor has many houses (apartments, separate houses); the entire number of houses in that contract transferred;
If the transferor wishes to transfer one or several houses out of the total number of houses purchased by the investor; the transferor must renew the house purchase and sale contract or the annex to the house purchase; and sale contract with the owner. invest in transferable houses before carrying out the contract transfer procedures.
Procedures for buying an apartment without a land use right certificate in Vietnam
The transfer of apartment purchase and sale contracts that have not been handed over/issued with pink books is specified in Article 33 of Circular 19/2016/TT-BXD, specifically including the following steps:
Step 1: The parties agree to make a written transfer of the house purchase and sale contract in accordance with the law
The content of the transfer document includes such information as: Information about the transferor and the transferee; contract transfer price, term and payment method; rights and obligations of the parties; dispute resolution…. The form of a written transfer of a house purchase and sale contract is guided by reference in Appendix 24 issued with this Circular.
The parties can agree to amend and supplement the terms in the reference contract form accordingly, but must ensure that all the main contents are as mentioned above and must not be contrary to the provisions of law. civil and housing law.
Number of contracts: Made into 07 copies (03 copies to be handed over to the investor for storage, 01 copy to be submitted to the tax authority, 01 copy kept by the transferor, 01 copy by the transferee, and 01 copy kept by the transferee. to keep at the notary or authentication agency).
Step 2: Notarize and authenticate the contract
- In case the seller is an organization with real estate business, the transfer document is not required to be notarized but agreed upon by the parties.
- In case the seller is not an organization with real estate business lines, the written transfer of the house sale and purchase contract must be notarized or authenticated in accordance with law.
The application for notarization or authentication includes the following documents:
+) 07 originals of transfer documents of house purchase and sale contract;
+) The original of the house purchase and sale contract signed with the investor of the commercial housing construction project;
+) A certified copy or a copy and must present the original for comparison of the following documents: ID card or CCCD card or a valid passport if you are an individual; if it is an organization; it must be enclosed with the establishment decision or certificate of establishment registration of that organization;
+) Other documents as prescribed by the law on notarization and authentication such as papers on marital status…
Step 3: Declare and pay related fees and taxes
According to the instructions in Official Letter 56877/CT-TTHT dated July 19, 2019 and point g, Clause 5, Article 2 of Circular 111/2013/TT-BTC; income from the transfer of apartment purchase and sale contracts is determined as: income from real estate transfer.
Therefore, after the two parties complete the notarization of the transfer document of the apartment building sale and purchase contract; the assignor or transferee will declare and pay personal income tax and registration fee according to regulations. determined.
Step 4: Get confirmation from the investor on the notarized document
The investor is responsible for certifying the transfer of the contract within a maximum of 5 working days from the date of receipt of complete documents; related to the transfer of the notarized apartment building sale and purchase contract; and hand it over to the applicant.
Within 5 days after receiving the documents related to the transfer of the notarized apartment purchase; and sale contract; and fully paying taxes and fees from the seller and the buyer. The investor will confirm and send the transferee the following documents:
- Transfer document of apartment sale and purchase contract
- Apartment building sale and purchase contract between the investor and the transferor
- Receipt for payment of personal income tax
- Minutes of house handover.
Step 5: Submit the application for the certificate of house ownership
The transferee of the last house purchase and sale contract is granted a Certificate by a competent state agency; in accordance with the law on land. When carrying out the procedures for granting the Certificate; in addition to the papers prescribed by the land law; the Certificate applicant must submit the following documents to the Certificate-issuing agency:
- The original of the house purchase and sale contract signed with the investor;
- The original copy of the final transfer contract certified by the investor.
You can refer to the article related to Regulations on apartment ownership or In case the company’s head office address is located in an apartment building in Vietnam
Related artice: Procedures for foreigners to buy apartments in Vietnam
Foreigners buy apartments of Vietnamese individuals
Related questions
The purpose is to make a place to live for people whose houses and land have been cleared. People choose one of the following two cases:
Receive compensation and move to another place
Moving into a resettlement area (a type of apartment building with basic services)
This is a type of apartment for people with low income. People who have been working for a long time but do not have enough money to buy a house have to rent a house to live in. In general, you will have to show low income to get into this type of housing.
Social housing is only granted a certificate of house ownership, lease and transfer after 5 years of receiving the house.
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