If you want to get a Vietnam home, you have to know some aspects and intricacies of owning it.
Can foreigners purchase Vietnamese real estate?
Foreigners frequently purchase primary market real estate directly from developers or from foreigners who have previously purchased it. However, you should be aware that there are limits on the secondary market for foreigners, since they are not permitted to purchase real estate from local people (Vietnamese) if the foreigner quota in that building has already been met (30 percent ).
When foreigners purchase property from a developer, they must get a certificate of ownership. One time, foreigners struggled to obtain a certificate of ownership in 2017, which caused some disappointment for obvious reasons.
What caused this to happen? The answer is simple: foreigners are not permitted to acquire real estate in areas designated for national defense and security under the legislation. Furthermore, it is up to the Ministry of National Defense and the Ministry of Public Security to determine whether the property is located in an area designated for national security protection. As a result, when purchasing a Vietnam home, you must exercise extreme caution.
The most critical paperwork to have when buying a home in Vietnam.
The pink book. This is the documentation of ownership of the property. The term is related to the color of the forms on which this document is printed. The pink book is a record of your property rights. This book grants you the right to lease your property and explains topics such as inheritance.
The red book. The possession of this document determines land ownership, not tangible constructions like houses and apartments.
Purchase agreement (SPA). This paper, I believe, requires no introduction; everyone is already familiar with it.
What to think about when buying a home in Vietnam.
Although its existence is not needed by law, the pink book is a more convincing proof of ownership. What is the purpose of the pink book, and what are its benefits? You must have a pink book if you:
- If you may demolish, maintain, repair, or rebuild your home.
- When you sell, mortgage, or rent a home.
Vietnam’s Land Use Rights (LUR).
Fortunately, Vietnam has a land regulation known as Land Use Rights (LUR) that lessens the risks of international investors operating in Vietnam. Even if the state has not increased the lease time of the land, you have the right to use it under the LUR.
It also grants you power over land leased or assigned by the Vietnamese government. Remember that you must first get a Certificate of Land Use Rights (LURC) from the Vietnamese government before leasing the land.…