Buying a house in Vietnam - A foreigner's guide

Question: I am a foreigner living in Vietnam. I already understand the requirements for owning a house here. Now, I would like to know the procedures for purchasing a house in Vietnam.

Answer: In addition to understanding the eligibility and permitted areas for home ownership, foreigners must also follow Vietnam's legal requirements regarding documentation and procedures.

Below is an outline of the documents and steps required to purchase a house in Vietnam.

Procedure for signing a house purchase contract with the developer

Step 1: Draft the contract
According to Articles 120 and 121 of the 2023 Housing Law, the parties must enter into a written house purchase agreement that includes the following key details:

• Full names of individuals or names and addresses of organizations involved;
• Description of the property and land use rights attached to the property. In the case of an apartment, the agreement must clearly state the shared/common areas, private ownership areas, floor area, and intended use of shared areas according to approved designs;
• Payment terms and methods;
• Handover schedule and warranty period (for newly built properties);

• Rights and obligations of each party;

• Commitments and additional agreements;
• Contract effective date and signing date;

• Signatures and full names of parties. For organizations, include official seal (if any) and title of signatory.

Step 2: Contract notarization or certification
The signed contract must be notarized or certified in accordance with the law.

Step 3: Requesting a Certificate of Ownership

The parties agree on who will apply for the Certificate of Title. If the house is purchased directly from the project developer, the developer is responsible for applying unless otherwise agreed.

Procedure for transferring a commercial housing purchase contract

Aside from signing directly with the developer, buyers may also purchase through a contract transfer, which essentially involves taking over another party's existing purchase contract with the developer.

According to Clause 2, Article 123 of the 2014 Housing Law and Article 32 of Circular 19/2016/TT-BXD, if the buyer has not yet applied for a Certificate of Ownership, he or she may transfer the contract. The transferee shall assume all the rights and obligations of the original purchaser.

Step 1: Prepare a contract transfer agreement

• The two parties prepare a written agreement that includes information about the transferor and the transferee;

• Details of the original purchase contract (number, date);
• Transfer price, payment terms;
• Rights and obligations of each party;
• Dispute resolution terms and other agreements.

Standard-form contract: Refer to Appendix 24 of Circular 19/2016/TT-BXD.

Number of copies: 6 originals:

• 3 for the developer
• 1 for the tax authority
• 1 for the transferor
• 1 for the transferee
  If notarization is required, prepare an additional copy for the notary office.

Step 2: Notarization or certification of the contract

• If the transferor is not a real estate business entity, notarization is required.
• If the transferor is a real estate business entity, notarization is optional.

Where: Notarization must be done in the same province/city where the property is located.
Documents required:

• 7 originals of the transfer agreement
• Original signed purchase contract with the developer
• Previous transfer contracts (if any)
• Certified copy or original for verification: ID card/passport, business registration (for organizations)
• Other legal documents (e.g., proof of joint/separate property ownership)

Step 3: Tax filing and payment

Step 4: Request developer confirmation of transfer

Step 5: Submit documents for Certificate of Title (if agreed in the original purchase agreement)