Payment for off-the-plan real estate sale or lease purchase

Hi DMS Attorney in Vietnam! Can you advise me about the provisions of law with regard to the first payment and following payments for an off-the-plan real estate sale or lease purchase ? Can the project developer require an initial payment of 30% of the contract price for off plan property ?

Hi!

Payment for off-the-plan real estate sale or lease purchase:

The off-the-plan real estate sale or lease purchase shall be paid by installments, the initial installment shall not exceed 30% of the contract value, the next installments shall correspond to progress of the construction provided that total installment shall not exceed 70% of the contract value if the house has been not handed over to the customer; if the seller or the lessor is a foreign-invested enterprise, the total installment does not exceed 50% of the contract value.

If the purchaser has been not issued the Certificate of land use rights, ownership of house and other property attached to the land, the seller or the lessor must not collect more than 95% of the contract price; the remaining value shall be paid when the purchaser is issued the Certificate of land use rights, ownership of house and other property attached to the land by competent state agencies.

The  project developer must use advance payment (installments) made by customers for proper purpose as committed (Article 57 Law on Real Estate Trading No. 66/2014/QH13 dated 11/25/2014).

Therefore, you may look into the above provisions of law and apply to your own situation.

Related topics:

Forms of real estate trading that a 100% FDI company may conduct in Vietnam

Forms of foreign investment in Vietnam

Entities entitled to purchase, lease purchase properties in Vietnam

Consulting services:

Phone: 0914 165 703 or email: dmslawfirm@gmail.com

Payment for off-the-plan property sale or lease purchase