Buying a property in foreign country where the buyer is not citizen is never easy in the whole world and Vietnam is no exception. But here’s a good news: Vietnam government is getting more and more open for internationals to own a property.
Even if you want to settle your life in this peaceful country or just make a real estate investment, now could be a ideal time to buy house in Ho Chi Minh city in particular and buy houses in Vietnam in general. Mogi will give you some useful information in this article.
How to purchase property in Vietnam
In fact, even Vietnamese citizens are not allowed to own land and nobody is. In Vietnam, land is national good regulated by the State, it is only theoretically collectively owned by the people.
Foreigners who are residents in Vietnam are permitted to purchase dwelling houses as long as you has a Vietnamese visa stamp on your passport. However, this does not apply to anyone who enjoy diplomatic or consular immunities and privileges,.
Another popular option for expats is to lease the land from the State. According to the recent Housing law, the lease scheme can last 50 years, which is almost a sale. This duration can be renewed without payment of additional rent. The complex owner will transfer the apartment title to the buyer if property ownership by foreigners becomes legal within that time. This contract gives the buyer many rights of ownership.
Besides, a foreign may also invest in Vietnamese real property by forming a joint venture company with a Vietnamese citizen partner. You can even join a wholly foreign-owned company, form a Build, Operate and Transfer (BOT) company or one of its variants to buy houses in Vietnam.
It’s also noted that the Housing Law sets a limit on the proportion of foreigners who may live in a determined area. The total number of units owned by all foreign buyers must not exceed 30% of the units in one apartment building, or 250 landed property units in one ward.
Steps to buy a house in Vietnam
1. Sign a reservation agreement.
Of course you must sign an agreement after you have chosen the house you want to buy. This legally links the buyer and seller. Both sides must examine the reservation agreement closely before paying the deposit. It’s best that you have a lawyer by your side.
2. Due diligence
This is the step when you check the reliability of the seller. Examine their ID, registration certificate and never forget the property’s certificates . For example, you could ask the seller to show bank guarantee or insurance to ensure whether they are trustworthy or not.
3. Sign the housing contract
Both parties must satisfy the due diligence then they have to sign the housing contract. This is important step to confirm their engagement.
The contract on residential house purchase and sale must be in Vietnamese, only the Vietnamese version is valid under Vietnamese regulations, any bilingual version is just for better understanding. Therefore expats will need to find a Vietnamese translator to help examine its content.
Here are something you should make sure about: if the property is a security for a loan or not, methods used for payment, the responsibilities for tax and fees, the delivery time, etc.
4. Paying taxes and fees.
Normally, the buyer will pay the registration fee and the seller will pay the income tax. The payment is made at the tax department of the district where the house is located.
5. Apply for an ownership certificate.
Both parties can agree on how to handle issuance of the new certificate, although it is most likely that a buyer will have to take it up.
Buying houses in Ho Chi Minh now would be a great investment opportunity that you expats should not miss since the property market here will be better very soon. To buy a house, you should visit Mogi blog for more information.
Mogi.vn
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