When dealing in real estate, brokers will be the bridge, the consultant. They will explain the steps in the transaction process. However, buyers and sellers also need to understand the process and legal procedures when buying and selling houses with red books to avoid unnecessary risks.
The article below will guide you the types of documentation to prepare and the process of doing the sale of houses that have a red book.
In the process of land transactions having a red book, after agreement on the selling price, mode of payment and time of payment, the purchaser agrees to buy, the seller agrees to sell, the working process follows:
Step 1: Placing land sale
The deposit of land purchase and sale can be done at the notary office or deposit between two parties and witnesses. The basic deposit consists of the following issues:
- Seller’s legal information: Full name, ID, Permanent Resident … Information of spouse, co-owner with the seller, if any. In case of unmarried sellers, a single residence certificate should be obtained at the place of residence. In case of divorce, you need a divorce certificate and a division of court property. In case of inheritance, there must be a legal heir.
- Buyer legal information: Full name, identity card, permanent residence card …
- Description of real estate: Address on red book, red book number, land area, construction area, information on the status of real estate …
- The total amount of the two parties agreed to buy and sell.
- Deposit amount.
- The next installment payment, form of payment.
- The time when the two parties signed a contract of sale (transfer) of land and houses at notary office.
- Other agreements related to PIT party, notary fee, brokerage party (if any).
Step 2: Notarization of sales contract in notary office
After the purchase deposit, the sales consultant should closely supervise and monitor the transaction process between the two parties in order to promptly handle arising problems. In order to build a contract of sale and notarization of contracts quickly and conveniently, save time for all parties, the consultant should contact the notary office in advance to prepare the purchase contract and The information the parties should have.
The seller’s documents need to be prepared:
- Original ID card or passport, or citizen identification card + 04 certified photocopy (spouse’s or other real estate co-owners).
- Original permanent residence book + 04 certified photocopy (spouse’s or other co-owners).
- Original marriage certificate + 04 certified copy (if the spouse is the spouse).
- A number of other documents such as a Single Certificate for the period during which the property was formed, divorce papers and division of property signed by the court, papers of division of property, …
- Original red book of real estate is trading.
Purchasing papers need to be prepared
- Original ID card + 04 certified copies
- Original of permanent residence + 04 copies of notarized photo (In case the buyer is married, the name may be either two or one of them).
Usually the performance of the notarization contract occurs at the same time that the buyer pays the remaining balance to the seller and the seller gives the buyer legal papers related to the purchase and sale on demand of the Notary Public.
Procedures for paying personal income tax
According to transactional practice: If the seller has to pay personal income tax, the seller usually deducts the amount of personal income tax for the buyer so that the buyer can conduct the tax declaration and continue the process of transferring the red book on the room district cadastral.
Step 3: Change name the red book
The red book of land is considered to be the most valuable legal document on ownership, ownership … of the owner. After the full documentation of the purchase and sale of real estate has been made, the buyer needs to proceed with the transfer of the red book to complete the process of trading.
Steps and tasks to take include:
- Go to the tax department of the district where the housing management is traded to declare personal income tax.
- Receive declarations of tax department and pay personal income tax declaration into state treasury.
- Receive payment receipt from the treasury, return to the tax department to get a certificate of tax obligations to the state.
- Bring the entire dossier to the district-level cadastral office where the property is being transacted for filing and transferring the ownership / owner’s name.
- The landlord must pay a registration fee to the state for the transfer of the name. This fee equates to 0.5% of the total value of the property in accordance with the price bracket set by the state.
See more knowledge of real estate law before buying a home here: Vietnam Real Estate Law