Housing Law in Vietnam, Decree on guiding the implementation

HOUSE-RELATED TRANSACTIONS

Article 57. Purchase and sale of houses under common ownership in the absence of co-owner(s)

1. The purchase and sale of houses under common ownership must comply with Article 96 of the Housing Law.
2. In case of purchase and sale of a house under common ownership in the absence of a co-owner while his/her place of residence is unidentifiable, the remaining co-owners shall, before selling such house, request in writing the court to declare the absent co-owner missing under law.
Based on the house sale price indicated in the house purchase and sale contract, the remaining co-owners shall deposit a house sale amount in proportion to the value of house o.wnership of the co-owner declared missing into a commercial bank in the locality where exists the house. When the co-owner declared missing returns and reques bank shall return both principal and interest to him/her at an interest rate on time deposits at the time of money receipt.
3. Incase the co-owner declared missing is dead or is ,deg:} red by the court as dead, the deposited amount meritioned in Clause 2 of this Article shall be divided to his/her lawful heirs under the civil law.

Article 58. Lease-purchase of social houses

1. The lease-purchase of a social hole must be effected under. a contract signed between the investor and lease -.purchaser.
2. After advancing 20% of’ the value of the house on lease-purchase, the lease-purchaser may pay the remainder of the rent within a period of time agreed by the investor and lease-purchaser. which must be at least 10 years after a house lease-purchase contract is signed.
3. Upon the expiration of the lease purchase duration and if the lease-purchaser has fully paid the remainder of the rent under Clause 2 of this Article, the investor shall carry out procedures fora competent state agency to grant a land use right certificate or house and land-attached asset ownership certificate to the lease-purchaser
4. The investor may unilaterally suspend the performance of a house lease-purchase contract and recover the house currently on lease purchase in any of the following cases:
a/  The lease purchaser fails to pay rents for 3 consecutive months without a plausible reason.
b/  The lease-purchaser repairs or demolishes at his/ her/its own will the structure of. or renovates or expands, the house;
c/  The lease-purchaser sells the house in contravention “of Article 40 of this Decree or transfers the lease-purchase right to another person without obtaining approval of the lessor.
In the cases specified at Points a and b of this Clause, the lease-purchaser may receive back 20º/ of the paid rent (without interest thereon); in the case specified at
Point c of this Clause, the lease-purchaser will not receive back 20% of the paid rent.
5. Disputes over house lease-purchasecontractsshall be settled through conciliation. If conciliation fails, the involved parties may request courts to settle disputes under law.

Article 59. Exchange of houses

1.  House exchange transactions under (he Housing Law are applicable only in cases the involved parties exchange houses and transfer the ownership of houses between (hem but not applliiccaabbllee in cases of exchangiinng right to use houses.
2.  Houge-exchanging parties shall comply with the order and procedures for house exchange and fulfill all financial obligations towards the State under regulations.

Article 60. House related transactions via real estate trading floors

1.  In case of dividing no more than 20% of house products not through real estate trading doors under Point d. Clause 3, Article 9 of this Decree, the investor shall notify in writing the quantity, addresses and types of houses to be divided, enclosed with the list of names and addresses of eligible house recipients, to the provincial-level Construction Department of the locality where (he house project is implemented for certification in replacement of a written certification of the sale of products through real estate trading floors.
The provincial-level Construction Department shall, pursuant to Article 9 of this Decree and based on the quantity of houses according to designs and plans of approved projects, certify only once the  list of eligible house recipients, types, addresses and areas of houses within 20 days after receiving the investor’s notice, and keep a copy of this list for monitoring and examination. The investor of the house development project shall divide houses in the allowed quantity to proper addresses and recipients according to types and areas of houses as certified by the provincial-level Construction Department. House recipients may not transfer the right to own divided houses to other organizations or individuals.
The investor may sell or lease the remaining quantity of houses under each project through real estate trading floors according to the order and procedures specified in the law on real estate business and this Decree.
2.  After completely building the foundation of a house under Point e. Clause 3. Article 9 of this Decree, the investor may sign house purchase and sale contracts with house product recipients defined in Clause 1 of this Article in replacement of previously signed contracts and documents. House purchase and sale contracts in this case andthe provincial-level Construction Department's wntten ‘certification specified in Clause 1 of this Article serve as legal grounds for a competent state agency to grant a land use right certificate or house and laud- attached asset ownership certificate to the house purchaser.
Investors may sign contracts to sell or lease houses subject to sale or lease through real estate trading floors only wfjan they fully satisfy the conditions specified at Points e and f. Clause 3, Article 9 of this Decree.
3. Organizations or individuals with houses divided or purchased through real estate trading floors under Clauses 1 and 2 of this Article, when reselling these houses to others, shall comply with the following regulations:
a/ They may sell these houses to entities eligible to own houses in Vietnam under the Housing Law only after signing house purchase and sale contracts with the investor;
b/ Enterprises with the real estate trading function shall sell these houses through real estate trading floors under the law on real estate business;
c/ Households, individuals or other organizations are not required to sell these houses through real estate trading floors but shall sell them under the Housing Law and this Decree. Those that have not yet been handed the houses and granted ownership certificates for such houses shall sell the houses under the Construction Ministry’s guidance.
1. Real estate trading floors may not invest in, purchase and sell or lease houses, but may only act as intermediaries to sell or lease houses as authorized by investors and enjoy through-floor trading charges under the law on real estate business. If committing violations, they will have the real estate trading function withdrawn by the State and shall be handled under the law on sanctioning of administrative violations in real estate business.
5. Contracts on purchase and sale or lease of ho.uses in contravention of this Article will be legally invalid and purchasers may not be granted land use right t›ertificates or house and land attached asset ownershié «ertificates for the purchased houses. House sellers and lessees shall pay compensation to house purchasers and lessees.

Article 61. Mortgage of houses

1. House mortgage must be conducted via contracts and comply with (he Housing Law and relevant laws.
2. Organizations and individuals that purchase houses to be formed in the future from real estate trading enterprises may mortgage such houses at credit institutions for taking out loans. Procedures for mortgage of houses to be built in the future comply with the State Bank's guidance.

Article 62. House-related transactions involving overseas Vietnamese and foreign organizations and individuals

1. Overseas Vietnamese participating in transactions related to purchase and sale, donation or inheritance of houses in Vietnam must satisfy the following requirements:
a/  Being eligible to own houses and fully satisfy the following conditions- for owning houses in Vietnam under the Housing Law;
b/ Purchasing and selling, donating or inheriting houses under the Housing Law and this Decree;
c/ Persons other than those defined in Article 1 of Law No. 34/2009/QH12 Amending and Supplementing Article 126 of the Housing Law and Article 121 of the Land Law or persons eligible to own a house in Vietnam under the Housing Law but currently owning a house in Vietnam who are donated or inherit another house may enjoy only the value of this house under Article 72 of this Decree.
2. Overseas Vietnamese and foreign organizations and individuals that lease houses in Vietnam shall comply with the following regulations:
a/ They fully satisfy the conditions for leasing houses in Vietnam under Article 131 of the Housing Law;
b/ House lease contracts must be made in writing under Article 93 of the Housing Law and this Decree;
c/ They shall fully exercise their rights and perform their obligations under the Housing Law, the Civil Code and this Decree.
3. House owners who are overseas Vietnamese may sign contracts to lease or authorize others to manage their houses during the time they do not use them.
These owners shall produce documents on their dispatch or rotation to work in other localities or outside the Vietnamese territory, issued by agencies or orgsnizations where they are working. If not falling in these cases, they shall make written commitments not to use on a temporary basis such houses when having contracts to lease or authorize others to manage their houses notarized or certified.

Article 63. Types of house contract

1. The purchase and sale, lease, lease-purchase, donation, exchange, mortgage, lending, letting free of charge, or authorized management of houses must be expressed in writing (referred to as house contracts). House contracts must comply with Clause 2, Article 93 of the Housing Law, the Civil Code and this Decree. For house-donating organizations, donation documents are required.
2. For contracts on purchase and sale of newly built houses (including available houses and houses to be built in the future), in addition to the requirements specified in Clause 1 of this Article, a house purchase and sale contract must clearly indicate the duration and responsibility for warranty of the house under the Housing Law and this Decree; land use right value in the house sale price and the seller's responsibility to pay land use levy to the State. For a condominium apartment, such a contract must also indicate the area under common ownership and area under private ownership of the condominium owner; the fund amount to be contributed for maintenance equal to 2% of the house sales; and the method of calculating the area of the apartment concerned. House purchase and sale contracts signed with sellers being real estate trading enterprises need not to be notarized or certified.
In case of purchase and sale of a house through auction, a house purchase and sale contract must, in addition to the requirements specified in the.Housing Law and this Decree. also comply with the law on property.

Aution

3. Contracts on lease or lease-purchase of.social houses must specify the rights and obligations éf the involved parties and need not to be notarized or certified.
A contract on lease of a social house must have a definite term of up to 5 years. Upon the expiration of the term, the lessee may have the contract extended by a competent agency if he/ she/it fully observes regulations on house lease during the lease and is still eligible for renting a social house. A contract on lease-purchase of a social house shall be signed as agreed between the investor and lease-purchaser pursuant to this Decree.
4. A contract on lease of a public-duty house must specify the rights and obligations of the involved parties and need not to be notarized or certified. Such a contract must have a definite term  corresponding to the  period the lessee holds the position under a decision on his/her dispatch or rotation, which, however, must not exceed 5 years. Upon the Expiration of the term, if the current lessee is still eligible for leasing a public-duty house under the Housing Law and this Decree and has fully paid the rent, the public-duty house-managing unit shall sign another contract with a term complying with this Clause.
5. A contract on lease of a commercial house must specify the rights and obligations of the involved parties under the Housing Law and Civil Code. In case an individual lessor a house for less than 6 months or the lesser is a real estate trading enterprise, a house lease. contract needs not to be notarized or certified.
6. A contract on authorized management, case, use sale or lease of a house must be notarized or certified. The involved parties may sign this contract and a competent notarization or certification agency may notarize or certify it as specified in this Clause only after such house is completely built (for available’houses).
7. Contracts on exchange, donation, mortgage, lending or letting free of charge of houses shall be made under the Housing Law and the Civil Code.
8. Competence to notarize or certify house contracts specified in this Article complies with current law.
9. The Ministry of Construction shall stipulate and issue forms of contracts on purchase and sale of houses, lease of houses (including commercial houses, public-duty houses and social houses) lease-purchase, donation or exchange of houses specified in this Article.

Article 64. Time of house ownership transfer for transactions related to purchase and sale, donation, exchange, lease-purchase or inheritance of houses.

1. The time of house ownership transfer in case of house purchase and sale is the date a house purchase and sale contract is notarized or certified. In case of house purchase and sale in which the seller is a real estate trading enterprise, the time of house ownership transfer is the time the seller hands.over the house to the purchaser as agreed in the contract,
2. The time of house ownership transfer in case of house donation is the date a house donation contract is notarized or certified. In case of house donation by an entity, the time of transfer of ownership of the house to the donee is the date the donor signs the donation document.
3. The time of house ownership transfer in case of house exchange is the date a house exchange contract is notarized or certified. In case the house-exchanging parties are real estate trading enterprises, the time of transfer of the. ownership of the exchanged house is the time of house handover as agreed in the house exchange contract.
4. The time of house ownership transfer in case of house lease-purchase is the time the lease-purchaser is granted a certificate of ownership of the lease-purchased house under Clause 3, Article 58 of this Decree.
5. The time of house ownership transfer in case of house inheritance is the time of opening inheritance. Heirs to the houses shall be identified under the civil law.
6. The time of house ownership transfer in case of purchase of houses on deferred or installment payment is the date the purchaser makes full payment to the seller, unless otherwise agreed by the parties.