The world is in the period of integration and Vietnam is chosen by many countries for cooperation, investment, and development. Many people came to Vietnam nowadays. You can see foreigners on the streets, they have living as well as working areas in cities. So, many foreigners consider owning a house to facilitate their living conditions. In this article, LSX legal firm will give you an insight of: “Transfer a house purchase contract to a foreigner in Vietnam”
Legal grounds
- Law on Housing 2014
- Decree 99/2015/ND-CP
- Circular 19/2016/TT-BXD
Foreigner as defined under Vietnamese law
Article 3 of the Law on entry, exit, transit, and residence of foreigners in Vietnam 2014 provides: “Foreigners means those who carry papers proving their foreign nationalities, or those without nationalities who enter, leave, transit through, or reside in Vietnam”.
In addition, according to Clause 1, Article 159 of the Law on Housing 2014, the subjects eligible to own houses 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 organizations).
- Foreign individuals allowed to enter Vietnam.
Besides, the foreign entities 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.
- 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
Transfer of purchase and sale contract
Clause 6, Article 3 of Decree 02/2022/ND-CP stipulates:
“The assignment of a contract of purchase and sale or lease-purchase of a house or construction work means the transfer of all rights, responsibilities, and obligations under the contract of sale, purchase, lease-purchase of houses or construction works for other organizations or individuals through the transfer of contracts made in accordance with the provisions of this Decree”.
Transfer of house sale and purchase contracts to foreigners
Conditions for transfer of a commercial house sale contract
Circular 19/2016/TT-BXD guiding Law 65/2014/QH13 on housing, specifically stipulated in Article 32, on conditions for the transfer of a commercial house sale contract:
- The buyer of a house of the investor in a commercial housing project may transfer the sale contract to another entity as long as the application for the Certificate has not been submitted to a competent authority, whether the house has been received or not.
- The transferee of the commercial house sale contract may transfer it to another entity as long as the application for the Certificate has not been submitted to a competent authority.
- The transfer of such contract shall only apply to a separate house or apartment. If the contract covers more than one apartment or house, all the apartments or houses in the contract shall be transferred. If the transferor wishes to transfer one or some of the houses, the transferor shall make out a new sale contract or appendix to the contract before following contract transfer procedures.
Procedures for transfer of a commercial house sale contract
The transferor and transferee shall make an agreement on transfer of the sale contract. The parties shall make the transfer agreement into 06 copies (03 copies submitted to the investor, 01 copy to the tax authority, 01 copy kept by the transferor, 01 copy by the transferee).
If the transfer agreement needs notarization or authentication, the notary or authenticating body shall keep another copy. If the transferor isn’t an enterprise or cooperative licensed to trade in real estate, the transfer agreement must be notarized or authenticated. In case the transferor is an enterprise or cooperative licensed to trade in real estate, notarization and authentication of the transfer agreement is optional.
After paying all taxes, fees, and charges for transfer of the contract, the transferee shall submit an application requesting confirmation by the investor of the transfer agreement.
From the second transfer of the contract, the transferee carries out the procedures same as those for the first transfer.
The last transferee of the sale contract shall grant the Certificate of land use right under land laws.
Confirmation of transfer agreement where an investor is not identified (because of dissolution, bankruptcy, shutdown, or other reasons):
- If the sale contract transferred before the effect of Circular 19/2016 but a Certificate has not been granted to the transferred house, the transfer agreement must be certified by the People’s Committee of the commune where the house is located;
- If the basis for certification is not ample; the People’s Committee of the commune shall post the sale contract at its office and the neighborhood where the house located. In case no dispute or lawsuit filed after 60 days from the day of posting the contract, the People’s Committee of the commune shall certify on the transfer agreement that has no dispute or lawsuit.
Content of agreement on transfer of the sale contract
- Firstly, information about the transferor and transferee (including information about the legal representative for organizations);
- Secondly, the number and date of the sale contract with the investor;
- Thirdly, transfer price, deadline, and method of payment;
- Fourthly, the rights and obligations of the parties;
- Fifthly, dispute settlement;
- Lastly, other arrangements.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Transfer a house purchase contract to a foreigner in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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Related questions
House invested and built for sale, lease, or lease-purchase according to the market mechanism.
Foreign individuals may own houses for a maximum of 50 years from the date of issuance of the Certificate; Upon the expiration of the house ownership term stated in the Certificate, if the owner wishes to extend it further, the State shall consider and extend it further.
Complaints and denunciations, settlement of complaints and denunciations related to housing development and management shall comply with the provisions of the Law on Complaints and the Law on Denunciations. When having a decision on the settlement of complaints and denunciations from a competent state agency on housing or a legally effective court judgment or decision, the relevant parties must execute the decision or that judgment.
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