New Conditions on Real Estate Purchase and Sale in Vietnam

New Conditions on Real Estate Purchase and Sale in Vietnam

The activities of real estate businesses have a significant impact on socio-economic development. As a result, the government has issued Decree 02/2022/ND-CP (the "Decree") detailing the implementation of a number of articles of the Law on Real Estate Business in order to promptly amend and supplement inadequate regulations to be consistent with reality in order to ensure the legal framework for the current real estate business activities. where the terms for the transfer of lease-purchase, purchase-sale, and construction-related contracts are mentioned.

Although there are no regulations regarding the transfer of contracts for the sale of non-residential real estate that will not be formed in the future, there is a high demand on the market for the transfer of purchase and sale contracts, lease-purchase of houses, real estate, and construction works. Consequently, there is no lawful premise to complete these exchanges as a general rule. As a result, Decree 02/2022/ND-CP has undergone a number of modifications and additions, has overcome some limitations compared to the past, and is anticipated to address deficiencies and issues.

As a result, Decree 02/2022/ND-CP combines specific regulations with conditions for the transfer of contracts for the purchase and sale of future homes and lease-purchase contracts for existing homes and construction projects.

First, a legally binding purchase and sale or lease purchase contract is required for the transfer of the contract. Therefore, these contracts must ensure that each transferred real estate object complies with the terms of the transfer agreement form, whether it's a Contract for Sale, Purchase, Lease, and Purchase of an Apartment, Tourist Apartments (Condotel), Office Apartments with Accommodation (Officetel), etc. Also, the signed contract must be present in cases where the parties signed it before Decree 02/2022/ND-CP went into effect. As a result, parties should ensure the legality of their respective contracts in terms of form and date of establishment when transferring these kinds of contracts.

Second, the transfer contract must be in the category that has not yet submitted a request to a competent state agency for the issuance of a certificate of ownership of houses and other land-attached assets, as well as land use rights. This arrangement has been referenced in the past guidelines for the exchange of land contracts shaped from now on. This has remained a necessary regulation up until this point in order to eliminate the possibility of a real estate bearing two or more certificates for the same object and prevent the handling of licensing procedures from overlapping.

Thirdly, there must be no disputes or lawsuits in the contract of sale, purchase, lease-purchase, and construction work. As a result, the disputed contract will not be utilized for transfer. The prohibition against transferring property rights to the disputed property is in line with this provision. Therefore, in order for the parties to have a foundation for the transfer of the contract, they must first settle the dispute. Real estate dispute lawyers in Vietnam must be consulted for appropriate dispute resolution in many complex cases.

Fourthly, houses and development works that are the subject of procurement and deal or rent buy contracts should not be dependent upon distraint or home loan to get the presentation of commitments as recommended by regulation. As of late, the peculiarity of moving these agreements has expanded with genuinely disregarded the arrangements of the law, making it hard for pertinent equipped power to deal with, in any case making harms the transferee without grasping the legitimate issues for the transferor in the agreement. Nonetheless, with the rule of regarding the understanding of the gatherings, the law actually permits the task of the agreement for this situation in the event that the mortgagee concurs and this assent should be recorded explicitly to keep away from questions later.

It is evident that the highlight of Decree 02/2022/ND-CP has initially resolved the deficiencies in the transfer contract for office apartments (Officetel) and tourist apartments (Condotel), providing the relevant competent authority with a legal foundation on which to handle the requirements. Additionally, Decree 02/2022/ND-CP has contributed to the development of a more transparent mechanism that enables participants to actively comply with regulations on effective real estate business contracts, thereby reducing contract disputes in Vietnam and fostering a safer and more long-term real estate market there.

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.