As a market that has been closed to the international public for a long time, Vietnam is still one of the areas where many real estate investors hesitate to buy. However, the introduction of a new law (officially enforced in July 2015), opens the Vietnamese property market to foreign nationals and expatriates. As of last year, any foreigner that lives in Vietnam with a valid residential or tourist visa can buy property in the country.
There are a few limitations as to the number of properties one can buy. Also, any property sold to foreigners is on a 50-year leasehold from the Vietnamese state, with a possibility for future extensions. Even when accounting for these minor stipulations, this new law represents an advantageous opportunity for any party interested in buying affordable, valuable property in this beautiful country.
A Few Essential Steps to Take When Buying Real Estate in Vietnam
After you selected your desired property from a reputable online resource like the Vietnam Dot Property website, you need to make sure that all of your paperwork is in order and that you have everything prepared to start the process.
- The first step in the buying process will consist of signing a reservation agreement with the buyer. This is a legal form that will bind you, as a buyer, to the seller through a promissory Depending on what you decide with the seller, this first step usually involves paying a deposit of up to 10% of the property value.
- The due diligence is a second step that comes in the buying process, and it is one that happens to be very important from a legal point of view. This allows the buyer to check how reliable the seller is. This will involve the verification of certain documentation, such as an ID, a registration certificate, and the legal right to sell the property. Other papers are also involved in the process, such as the title certificate related to the land upon which the property is built.
- On the other hand, the seller can also check the reliability of the buyer by asking for bank guarantees. This ensures that the buyer actually possesses the wherewithal to complete the sale.
- The next step is the signing of the selling property contract, where the buyer pays another percentage of the property amount.
- After a viable contract is signed, you receive a Land Use Right Certificate issued by Vietnamese authorities, granting you use of the property for a leasehold of 50 years. This is the official land renting document and you cannot finalize any property buying process without it.
Why You Should Use an Attorney in The Process
For an expatriate living in Vietnam for only a couple of months, understanding some of the legal rigors can be tough. This is why it is important to work with a specialized attorney every step of the way. To make sure that the right processes have been followed, especially with regard to the legal fees and terms/conditions, it is really important to make sure you have a specialized professional in your corner. An attorney can also have a very important advisory role during the property buying stages, helping you eliminate any potential quandaries.