Adding Foreign Subjects may Own Resident Houses in Vietnam
Residents and investors alike have been paying close attention to The Draft Law on House (amended). One of the most significant changes is a provision about foreign companies and individuals to own their own houses in Vietnam.
In accordance with The Draft Law on House's Articles 161, 162, and 163, there are three scenarios in which foreigners may own Vietnamese residences:
-Foreign organizations, individuals contribute the build inhabitant houses as indicated by projects available to be purchased, rent, employ buy deal.
-Commercial properties in projects of resident house development, new urban areas, and tourism real estate may be purchased, donated, or inherited by foreign-owned enterprises, branches, representative offices of enterprises without a real estate business, foreign investment funds, and branches of foreign banks permitted to operate in Vietnam.
-Individuals from other countries who are permitted to enter Vietnam and do not enjoy diplomatic or consular immunity or incentive rights
However, subjects in Sections 2 and 3 are eligible to own houses for a maximum of 70 years from the date of issuance, subject to current laws. They are not permitted to acquire social housing; they are only permitted to acquire commercial houses. Additionally, they are eligible to acquire an unlimited number of commercial residences in tourism, new urban area, and commercial resident house development projects. Foreigners, in particular, are permitted entry into Vietnam and are permitted to purchase and own residential properties there.
When the amended Law on House is adopted, it is anticipated that real estate in Vietnam will make a big change significantly.
There are many situation that dispute could arise in a real estate transaction to own Resident Houses in Vietnam. It is important to engage law firm in Vietnam specializing in real estate transaction for buying property in Vietnam to avoid potential disputes and protect their best interest for safeguard investment for buyer. When encountering dispute, the buyer need to engage real estate dispute lawyers in Vietnam to handle dispute resolution.
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