Term of house ownership of foreign organizations. Can foreigners own houses in Vietnam? What is the term of house ownership? Let us learn about this topic with LSX law firm as follow:
In addition to the cases of owning stable and long-term houses; such as separate houses built on residential land of households; individuals or apartment buildings with a term according to the term of the housing construction investment project (considered to be extension); there are some cases of house owners with a definite term, specifically:
Case 1: Owning a house for a certain period of time as agreed by the parties
Pursuant to Clause 1, Article 123 of the Law on Housing 2014 guided by Article 73 of Decree 99/2015/ND-CP; the seller may sell the house in association with the transfer of the right to use residential land; or the right to rent residential land with houses to the buyer for a certain period of time.
During the term of house ownership and residential land use as agreed by the parties; the seller may not unilaterally terminate the contract, unless otherwise agreed by the two parties.
In case of house ownership in the above case, the two parties shall specifically agree on the following contents:
- The time limit for the buyer to own the house.
- Rights and obligations of the buyer during the house ownership period.
- Responsibility for registration and issuance of Certificates (Red Book, Pink Book) to the buyer.
- The handover of the house attached to the residential land use right; and the recipient returns the house after the ownership expires.
- The handling of the granted Certificate when the ownership expires; and the responsibilities of the parties in the performance of the house purchase and sale contract.
In case the two parties agree that the house purchaser is entitled to sell; inherit, inherit or contribute capital with the house during the house ownership term; the purchaser, the inheritor, the receiver as a gift, the party receiving the capital contribution may only own that house for the time limit; that the first-time house buyer has agreed with the first-time homeowner.
Case 2: Term of house ownership of foreign organizations
According to regulations on foreign organizations in Vietnam, foreign organizations include foreign-invested enterprises, representative offices, branches of foreign companies in Vietnam; foreign bank branches; investment funds operating in Vietnam.
– To own a house for a maximum period not exceeding the time limit stated in the Investment Registration Certificate issued to that organization. When the house ownership period expires; but the owner wishes to extend it, the State shall consider and develop it further.
If the investment registration certificate issued to a foreign organization does not have an expiration date; the certificate (red book, pink book) granted to that organization shall also be recorded indefinitely.
– The foreign organization is dissolved or bankrupt; or terminates its operation before the expiration of the house ownership period or is revoked by the Vietnamese State. Foreigners shall handle housing according to Clause 1, Article 8 of Decree 99/2015/ND-CP.
– During the term of house ownership; if the foreign organization transforms into a domestic organization through capital transfer or merger according to regulations; such organization entitled to own stable and long-term housing.
Case 3: Foreign individuals may buy houses in Vietnam
To own a home in Vietnam for a maximum of 50 years from the date of issuance of the Certificate (Pink Book, Red Book); When the ownership term expires; if the owner wishes to extend it, they shall apply for an extension to the State.
Note: Before the expiration of the ownership period, if a foreign individual or organization sells or donates a house, the buyer or recipient may own the house according to the following provisions:
– If the buyer or recipient is a domestic organization, household or individual, or overseas Vietnamese, that they may own house stably and long-term.
– If the buyer or recipient being a foreign organization or individual may own a house in Vietnam, they may only hold the place for the remaining term; When the remaining ownership term expires, if the owner of this house wishes to extend it further, the State shall consider and develop it further.
– The seller and the donor must pay taxes and other financial obligations to the State of Vietnam under Vietnamese law.
Dossiers and procedures for house ownership extension
Step 1. Prepare and submit the renewal application
03 months before the expiration of the ownership period, you must apply for an extension if the owner wishes.
Step 2: Receive and process documents
Apply to the one-stop-shop/public administration center to transfer to the People’s Committee of the province or centrally run city where the house needs to be extended. Besides, there is also have procedures for renting houses for foreigners in Vietnam.
Finally, hope this article about Term of house ownership of foreign organizations is helpful for you!
Ownership is a legal category that reflects ownership relations in a certain ownership regime; Synthesize legal regulations on property issues existing in society at a certain historical time; The rights of the subject to the property under his/her ownership include the right to possess, the right to use and the right to dispose of the owner according to the provisions of law.
According to the provisions of Clause 26, Article 4 of the 2014 Law on Enterprises (currently applying the 2020 Enterprise Law), a foreign organization is an organization established in a foreign country under foreign law.