AN INTERNATIONAL GUIDE FOR BUYING AND SELLING REAL ESTATE BY INTERNATIONAL LAWYERS NETWORK

An international guide for buying and selling Real Estate. This guide offers an overview of legal aspects of buying and selling real estate in the requisite jurisdiction like Argentina, Bahamas, Brazil, Chile, Czech Republic, Germany, Greece, India, Latvia, Netherlands, Portugal, Russia, scotland, Turkey and United States.

The International Lawyers Network's Real Estate Specialty Group is pleased to announce the release of the second edition of their guide, "Buying & Selling Real Estate: An International Guide." https://lnkd.in/gZJtqnY

PURCHASING FUTURE BUILDING IN VIETNAM: TERM OF PAYMENT

Due to the nature of future building, sale or lease purchase of future building shall be paid by installments:

(i) the initial installment do not exceed 30% of the agreement value,

(ii) the next installments shall be conformable with real estate construction progress;

(iii)If the building has been not transferred to clients the total installment does not exceed 70% of the agreement value; if the seller or the lessor is a foreign-invested enterprise, the total installment does not exceed 50% of the agreement value.

(iv)If the buyer or the lessee has been not granted the Certificate of land, ownership of land and property on land, the total installment does not exceed 95% of the agreement value.

(v) The remaining value shall be paid when the buyer or the lessee is granted the Certificate of land, ownership of land and property on land by competent agencies. According to Real Estate Law 2014, the investor or seller must complete such paper works within 50 days from the day on which the house or the building is transferred to the buyer or from the deadline of lease purchase, except that the buyer or the renter requests in writing that they shall apply themselves for the Certificate.

CONDITIONS APPLICABLE TO THE BUSINESS OF FUTURE BUILDING

Future Building means any buildings which is under construction and has not been permitted to put into operation. According to  Vietnam Real Estate Law 2014, a future buildings can be sold, leased or lease purchased prior the comletion of construction. However, such future buildings must meet the following conditions to be put on the markets:

1. Conditions on paperworks: the following documents must be avaiable prior putting the future building on the markets

- Documents on land, project documents or construction drawing approved by competent agencies;

- License for construction;

- Documents on certification of completion of technical infrastructure in equivalent to project progress; or it is required to gain the certification of completion of the foundation of the building regarding future apartment buildings or mix-used buildings.

2. Conditions on notifications to State Agency: The investor must send written notification to the  agency in charge of housing of province for the future building permitted to be put on the market.

3. Bank Guarantee condition: The investor’s financial obligations must be guaranteed by a competent commercial bank in case the investor fails to transfer the building on schedule as commitment to clients before the investor sell or lease purchase future buildings.

- The State bank of Vietnam shall issue the list of competent commercial banks which may give guarantee in the future real estate trading.

- The scope, requirements, content and guarantee fee shall be agreed by contracting parties and concluded in an agreement

- The investor shall send the copy of guarantee agreement to the buyer or lessee when the agreement on sale or lease purchase is signed.

- The guarantee agreement will stay unexpired until the building is transferred to the buyer or lessee.

- If the investor fails to transfer the building on schedule as committed and at the request of the buyer or lessee, the guarantor shall make a refund of the option fee and other payments to clients under agreement on housing sale or lease purchase and signed guarantee agreement.