Some questions when buying land use rights in Vietnam

1. What are the differences between the Red Book and Pink Book? Why are they labeled as "long-term" and "dated"?

The "red book" is the phrase the locals often call the Certificate of Land Use Rights. The color of this Certificate is red, so they call it a "red book." In the legal regulations, there is no regulation on the phrase "red book.";

The 'pink book ', or the Certificate of ownership of houses, construction works, and other assets attached to land, is another significant legal document in property ownership. It's called the 'pink book' due to its pink color. However, like the 'red book ', the term 'pink book' is not a legal term, but a local term.

Accordingly, the difference is that the red book (Certificate of Land Use Rights) is a legal document that the state issues to certify land use rights. In contrast, the pink book (Certificate of ownership of houses and works construction and other assets attached to land) is a legal document issued by the state to certify ownership of housing and other assets attached to the land.

Currently, the Certificate of land use rights and Certificate of ownership of houses and other assets attached to land have been replaced by Certificates of land use rights, ownership of houses, and other assets attached to the land. This means that land use rights, housing, and other assets attached to land will be recognized and issued with a Certificate using a single type of document, no longer stipulating the "Red Book" or "Pink Book."

Depending on the type of land, the purpose of the property, and the property owner, the ownership period can be long-term or limited. For example, the term of use of commercial land is at most 50 years, and the term of use of residential land is long-term.

2. How can one verify ownership credentials of land and land use rights?

To check land use rights, you need to send a Letter to the competent authority to check whether the land is in dispute, mortgaged, or distrained and whether the Certificate of the Land Use Rights is correct with the owner that authority to issue it.

3. Are foreign spouses and children allowed to inherit if anything happens to the spouse?

The answer is yes.

If the spouse dies without a will, the first line of heirs, including the deceased's parents, spouse, and children, will enjoy the inheritance left by the deceased.

The person named in it will enjoy the inheritance if there is a will. If the beneficiary of the inheritance is a foreigner, they will enjoy the value of the land use rights.

4. What laws protect consumers when buying property in Vietnam?

When dealing with land use rights in Vietnam, Civil Law and Land Law will regulate these transactions.

5. What are the procedures for purchasing property in Vietnam?

- How long does it take for a transaction to complete?

It usually takes 15-20 working days from the date the transferring Contract is notarized and will depend on the payment of taxes/fees/charges that the buyer pays to the state.

6. What are the applicable taxes and fees?

Can you provide an example calculation for the fees and taxes for a 350-square-meter land lot (transfer price VND 28 billion)?

The taxes, fees, and charges are as follows (assuming the buyer and seller are both individuals)

- Personal income tax (the seller pays according to regulations, but the parties often agree that the buyer pay or the selling price will be deducted before personal income tax so that the buyer pays personal income tax to be granted a Certificate:

Personal income tax = 2% x Transfer price = 2%* 28,000,000,000 = 560,000,000 VND

- Registration fee = 0.5% x Transfer price = 0.5% x 28,000,000,000 = 140,000,000VND

- Document appraisal fee to issue Certificate =  900,000 VND

- Notary fee = 5,200,000 + 0.03%* 18,000,000,000 = 10,600,000 VND

No.	Value of property or the value of contract/transaction	Fee  (VND/ case)
1	From more than VND 10 billion to VND 100 billion	VND 5.2 million + 0.03% of the portion of the value of property or the value of contract/transaction in excess of VND 10 billion.

7. Do buyers need to know any important guides or preventive measures to protect themselves?

- Check whether land use rights are distrained, blocked, or transfer restricted.
- Check documents related to land use rights

8. What protection can property lawyers provide for buyers?

Yes, we can assist you in checking the status of the land and the documents relating to the properties.

Besides, if the foreigner would like to draft the Agreement between her/him and her/his spouse relating to the original properties, we will also assist them in making the contract. If there is a problem between them, this Agreement will protect the person who contributes to buying the land.

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