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The Legal Notes To Know When Buying An Apartment

Legal to know when buying an apartment

At present, most buyers do not have time to learn the legal regulations on the purchase and sale of apartments so they have many disputes and losses.

In order to help the buyer mitigate the risks that might arise during the sale of the apartment, Vietnam Real Estate listed a number of legal notes to know through the article below.

Note 1: The first is the certificate of business registration of the investor, which must have real estate business. This document will ensure that the investor has sufficient legal basis to carry out the construction and business of real estate projects.

Note 2: A very important document is the certificate of land use rights (red book) or land lease rights of the investor. When the project has enough certificates, the project has cleared the ground and the land for the project is “clean land” without any legal dispute. Moreover, the red book will prove that the project owner is selling without the mortgage investor at the bank.

Note 3: The third:  Documentation is the project’s construction permit. Many projects are currently under construction without permission and construction is suspended, leading to slow progress of the project.

You can read more the article The Process Of Buying And Selling Houses With A Red Book in the Vietnam Real Estate Law

Note 4: The fourth:  A record identifying the investor who has completed the obligation to pay land use fees and land taxes. Many apartment buildings when people go to the red book is entangled because the investor owes financial obligations to the state. See also: 4 Steps to identify the owner credibility.

One thing to note is that the information must always be available at the owner’s location, if required by the buyer, they must be present. Buyers can compare with information collected from relevant agencies such as Department of Natural Resources, Department of Construction, Department of Architecture and Planning of the city.

Legal to know when buying an apartment
Apartment buyers should look at the project’s construction permit before deciding to “pour money”

Note 5: In addition to the legal documentation of the project, the buyer should carefully review the purchase contract, paying special attention to the following:

The payment currency must be VND, to ensure compliance with the regulations of the State Bank. If the sales contract stipulates that payment is in USD, the dispute will not be recognized by the court.

The progress of payment must be related to the progress of completion of each construction part. Up to 70% of contract value will be paid up to the time of handing over the house. Should retain 5-10% of contract value until the delivery of the certificate of ownership of the apartment (pink book).

Legal to know when buying an apartment
Buyers should note that payment progress must be associated with the progress of completion of each construction

It is important to note that the person signing the contract must be the authorized representative, it means, the legal representative of the investor or the investor must have a lawful authorization letter. They must adhere to avoid the contract being invalidated.

>>> You can read more information at: A Series Of New Policies On Real Estate Came Into Effect In February 2017

With regard to the purchase and sale projects with the investor, ie the housing projects to be formed in the future, the time of signing the contract must be the time when the project must be completed. If the project has not completed the foundation that the investor signed the contract with the customer is against the law.

In addition, buyers should evaluate and consider arrangements for other expenses other than home purchase and future payments. For example, the cost of apartment management, security service fees, parking fees, maintenance fees, electricity and water supply prices, etc. And the special thing is that general and private area should be considered to avoid disputes later.

One final note is that the contract specifies that the owner must be obliged to guarantee the apartment housing for the buyer within a minimum of 60 months from the date of completion of construction and acceptance into construction. The warranty covers repairing and repairing damaged parts of the house (floors, walls, ceilings, stairs …) and also the systems of living (electricity, water,…).

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The Legal Notes To Know When Buying An Apartment
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