CLIENTS ALERT

 

Opening the Door to Foreign Entities and Individuals to Purchase Residential Properties. Under the New Law, broader categories of individuals and entities are entitled to purchase homes, including:
• All foreigners who are granted a visa to Vietnam are allowed to buy residential properties in the country;
• Foreign-invested enterprises, branches and representative offices of foreign enterprises, foreign investment funds and branches of foreign banks operating in Vietnam;
A foreigner is entitled to buy and own not only landed houses, but also condominiums. The number of condos is limited to 30% of the total number of condos in one apartment building. The number of separate houses is limited to 250 villas/town-houses in an area having a population equivalent to the administrative level of a ward.In addition to the outright purchase of a house, a foreigner may own a house with a mortgage or loan against it, or may receive ownership as a gift or inheritance.
The ownership term of foreign individuals is 50 years and may be extended. Before the expiry of 03 months home ownership, foreign individuals can carry out the procedures for ownership extension of time to one, but not more than 50 years.Foreign individuals married to either local Vietnamese or overseas Vietnamese are entitled to long term ownership in the same manner as local Vietnamese.

Payment for purchase of houses with or without mortgage must be made through a licensed credit institution in Vietnam – e.g., a bank.

A foreigner may sell his own house. The right to rent or lease depends on the identity of the owner. A foreign organization (that does not engage in the real estate business) is entitled to use the house only as an accommodation for its employees, and is not entitled to lease it out as an office, or for other purposes, provided that prior to leasing it out, he/she sends a written notice informing competent authorities that he/she will do so.
A foreigner may receive a certificate for land use rights and ownership of the house, condo, etc on the land (together, “LURC”)
The LURC is a unified form issued to either foreign land users or domestic land users who own either a separate house or a condo. The document is applicable to Vietnamese citizens or foreigners.
There may be differences in the application documents for the LURC among the various authorities that issue an LURC. For example, a provincial-level People’s Committee may issue the LURC to foreigners, and a district-level People’s Committee may issue the LURC to Vietnamese. This will be defined in the implementing regulations. There is also the visa requirement for foreign individuals
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