1.  Checking information to avoid risks

1.1.  Check conditions for real estate transfer

* Conditions for transferring land use rights

Based on Clause 1, Article 188 of Land Law 2013 , land users may transfer land use rights when meeting the following conditions:

- The land is not disputed.

- Land use rights are not distrained to secure judgment enforcement.

- Still in a shelf life

- Having a certificate.

* Conditions for houses purchase and sale

According to Clause 1, Article 118 of the Law on Housing 2014, a house may be purchased and sold when fully satisfying the following conditions:

- Have a Certificate.

- No disputes, complaints, lawsuits about ownership.

- Not being distrained for judgment enforcement or distrained to execute administrative decisions  which is legally effective of competent State agencies.

- Not subject to a decision on land recovery or a notice of house clearance or demolition

1.2. Checking if the Red Book is real or fake, planning, mortgage

In order to avoid buying real estate without a Certificate, a fake Certificate, or a house under planning or being mortgaged, buyers need to check information about the property. There are many ways to check, but the most accurate should be checked at the Land Registry Office.

To check information about the land plot, the household or individual fills in all information according to the request form. After filling in all information, households and individuals follow the following process:

Step 1: Submit the request form

: Nếu nhận được yêu cầu trước 15 giờ thì phải cung cấp ngay trong ngày; trường hợp nhận được yêu cầu sau 15 giờ thì cung cấp dữ liệu đất đai được thực hiện vào ngày làm việc tiếp theo.

Based on Clause 1, Article 12 of Circular 34/2014/TT-BTNMT, households and individuals submit a request form in one of the following ways:

- Submit directly at the branch of the land registration office in the district, town, provincial city.

- By post.

- Send by email or through the land portal.

Step 2: Receive and process

Step 3: Return the result

Implementation deadline: If the request is received before 15:00, it must be provided within the same day; In case the request is received after 15 hours, the provision of land data is made on the next working day.

2.  Process and procedures for purchase and sale

 Step 1: Deposit (optional)

Mặc dù pháp luật không bắt buộc các bên phải đặt cọc khi chuyển nhượng nhà đất nhưng thông thường người dân thường lập hợp đồng đặt cọc để “làm tin”. Để đặt cọc an toàn và hợp pháp thì người dân nên thực hiện theo hướng dẫn đặt cọc khi chuyển nhượng nhà đất. Although the law does not require the parties to make a deposit when transferring real estate, usually people often make a deposit contract to "believe". In order to make a safe and legal deposit, people should follow the deposit instructions when transferring real estate.

Bước 2: Công chứng, chứng thực

Căn cứ điểm a khoản 3 Điều 167 Luật Đất đai năm 2013, khi hộ gia đình, cá nhân chuyển nhượng nhà đất cho nhau phải công chứng hoặc chứng thực hợp đồng.

Step 2: Notarization, authentication

Pursuant to Point a, Clause 3, Article 167 of the 2013 Land Law, when households and individuals transfer houses and land to each other, the contract must be notarized or authenticated.

Step 3: Declaring taxes and fees

When transferring real estate, the parties must declare personal income tax and registration fee. If the parties agree that the transferee pays tax on behalf of the transferee, the tax and registration fee should be declared at the same time as the time of submitting the application for transfer registration to save time.

Step 4: Register your name

* Prepare documents If the transferee pays personal income tax instead, the application for registration of changes includes:

- Changes Registration according to Form No. 09/DK.

- Transfer contract.

- The original Certificate issued.

- Personal income tax declaration form Form No. 03/Real Estate-TNCN.

- The original form of registration fee Form No. 01.

- Papers proving that they are exempt from tax and registration fee (if any).

* Submit

- Households and individuals submit to the People's Committees of communes if there is a need.

- In case it is not submitted at the commune-level People's Committee, then:

+ Households and individuals pay at the district-level one-stop shop.

+ Where the one-stop shop has not yet been organized, it shall be submitted at the branch of the district-level land registration office; Where there is no land registration office, it shall be submitted at the land use right registration office.

* Receiving, handling

* Time limit for settlement:

The time for implementation shall not exceed 10 days since the date of receipt of a valid dossier; The above time limit does not include the time of holidays, public holidays, the time to fulfill the financial obligations of the land user, the time of receiving the dossiers at the commune-level People's Committee (according to Clause 40 Article 2 of Decree 01/2017/ ND-CP)

 

Hộ gia đình, cá nhân nộp tại UBND cấp xã nếu có nhu cầu.

- Trường hợp không nộp tại UBND cấp xã thì:

+ Nơi chưa tổ chức bộ phận một cửa thì nộp tại Chi nhánh Văn phòng đăng ký đất đai cấp huyện; nơi chưa có Văn phòng đăng ký đất đai thì nộp tại Văn phòng đăng ký quyền sử dụng đất. 

3. 4 expenses when buying and selling real estate

In addition to the remuneration and notary fees paid when the transfer contract is notarized, when transferring the name, the parties must pay personal income tax, registration fee (if not waived) and diligence costs according to the notice. Each cost is specified as follows:

* Remuneration, notary fees

- Obligation to pay: To be agreed by the parties.

- Notarization fee

According to Clause 2, Article 4 of Circular 257/2016/TT-BTC, the notary fee is calculated as follows:

   

Order	Value of property or value of contract, transaction	Collection rates
	1		Under 50 million VND	50,000 VND
	2		From 50 million VND to 100 million VND	100,000 VND
3	From over 100 million VND to 01 billion VND	0.1% of property value or value of contract or transaction.
4	From over 01 billion VND to 03 billion VND	01 million VND + 0.06% of the asset value or the value of the contract or transaction exceeding 01 billion VND.
5	From over 03 billion VND to 05 billion VND	2.2 million VND + 0.05% of the asset value or contract value, transaction exceeds 03 billion VND
6	From over 05 billion VND to 10 billion VND	3.2 million VND + 0.04% of the asset value or contract value, transaction exceeds 05 billion VND.
7	From over 10 billion VND to 100 billion VND	5.2 million VND + 0.03% of the asset value or contract value, transaction exceeds 10 billion VND.
8	Over 100 billion VND	32.2 million VND + 0.02% of the asset value or contract  value, transaction exceeds 100 billion VND (maximum collection rate is 70 million VND/case).

* Personal income tax

- Person who is obligated to pay tax: The seller must pay, but the parties are allowed to agree.

- Personal income tax rate: According to Article 17 of Circular 92/2015/TT-BTC, personal income tax when transferring real estate is calculated according to the following formula:

Personal income tax = Transfer price x 2%

* Registration fee

- Person who is obligated to pay: Usually paid by the buyer, but the parties are allowed to agree.

- Registration fee level: Based on article 5 Decree 140/2016/ND-CP and Clause 1 Article 1 Decree 20/2019/ND-CP, if the house and land price in the contract is higher than the price set by the Provincial People's Committee, the registration fee is calculated according to the following formula:

Registration fee = Transfer price x 0.5%

* Diligence costs

Based on Circular 85/2019/TT-BTC, when transferring real estate, the application fee must be paid. Each province has a different appraisal fee because it is regulated by the Provincial People's Council.