PURCHASING REAL ESTATE IN VIETNAM – HOW TO ACQUIRE ESSENTIAL INFORMATION?

Generally, when approaching a properties in Vietnam, foreign investors might easily collect some generic information as stipulated by Law on Real estate 2014, they are:

- Type and location of the real estate;

- Information about planning related to the real estate;

- Scale, characteristics, utilities and quality of the real estate; information about each utility and general use area if the real estate is a mixed-use building or an apartment building.

- Actual conditions of constructions or services related to the real estate;

- Documents on ownership of buildings and land and documents related to real estate construction; guarantee agreement, written permission for off-the-plan building sale or lease purchase transactions granted by competent agencies;

- Restrictions on ownership of or rights to use real estate (if any);

- Real estate sold, transfer, lease, sublease, lease purchase price.

Various information about certain real estate could be found in public. A cautious purchaser might invest a lot of time and effort in analyzing and evaluating the investment return rate (IRR) or revenue and turnover. Moreover, a prudent purchaser also understand that the public information is only used for reference. What they actually need is valuable information from real estate experts. Such information is unique and distinguished depend on the ability and experiences of the expert. For example:

From a local real estate broker:

- quasi transactions in the same areas;

- history of transaction related to the property;

- analyze and comment on commercial documents;

- local practice in a real estate transaction;

- the advantages and disadvantages of property;

From a local real estate lawyer:

- evaluate the legality of property, project or seller, investor;

- explain the relevant state policy in the near future;

- consult on how to legally perform the transaction?

- provide consultancies on paper works;

- provide tips

“A wise investor always ask for consultancies from brokers and lawyers prior decisions on property matters” 

For conclusion, there are many ways to accquire information to purchase properties in Vietnam. The more information, the more prudent decisions and actions. Among all, the two most essential factors are price and legality. It will be a good deal if purchaser can handle such factors wisely.

PURCHASING REAL ESTATE IN VIETNAM – HOW TO SEEK FOR TRANSPARENT INFORMATION?

One of the difficulties when purchasing properties in Vietnam is the transparent of information. Mostly purchaser do not fully comprehend about their right to be disclosed information. Thus, it is highly risk to be involved into legal claims after transaction. For avoidance of such problems, potential purchaser should take into account the following question when seeking for informations:

 

“Where could potential purchasers seek for informations on real estate?”

 

1. From sellers or real estate enterprises (investor of project):

- On the website of the real estate enterprise; 

- At the Project management board regarding investment project on real estate trading. Normally this board is put at the head office of the real estate enterprise or at the site. 

- On the real estate trading floors regarding real estate trading through trading floors.

Daniel Nguyen: It is easy to find out information provided by seller or investors. However, these information, is normally generic and not detailed enough to help purchaser making the decision.

2. From relevant state authorities:

Real estate enterprise is obligated to make report periodically to relevant state authorities. Hence, the information provided to state authorities is always accurate and legitimate. Below is some recommended state authorities for potential purchaser to get in touch in real estate sector: 

-         Provincial department of investment and planning 
-         Provincial tax department 
-         Provincial land’s registration office 
-         Provincial peoples’s committee 

Daniel Nguyen: It is ideal method to seek for information from state authorities. However, as consequence of bureaucracy, it takes much time and efforts to get the results.

3. From Real estate Experts:

Real Estate experts could be local brokers and lawyers. As professional, they comprehend and understand fully information about properties or projects including market informations like location, type, scale, characteristic, ect and legal information like the legality of investor, project, capital contribution agreement, purchase contract agreement, time-share agreement and other provisions for the rights and benefit of purchaser.

Daniel Nguyen: Hiring real estates experts helps potential save much time and increase the efficiency. However, since 2015, the real estate market in Vietnam is emerging rapidly. Numerous projects were started by various investors. New form of investments  were introduced like condotel, resorts, villa, officetel, ect. New law on real estate and law on housing comes into effective, providing diversity of incentives to investors, especially foreign investors. As result of information overload, it is not easy to find a real estates expert who could adapt quickly with the new trend. Purchasers and investors should be wisely in choosing partners to get fruitful result.