1. Legal Check
- Original Certificate: Verify the original Land Use Rights Certificate (red/pink book).
- Local Authorities: Visit the People’s Committee or the Department of Natural Resources and Environment to check the land planning status.
- Notary & Enforcement Offices: Check if the property is currently mortgaged, distrained, or frozen.
2. Seller’s Authority Verification
- Ownership status: Confirm if the seller is the actual owner or an authorized representative.
- Marital property: Ensure both spouses sign if the asset is jointly owned.
- Household land: Require signatures from all members listed in the household document.
- Inherited property: Verify that the estate declaration and distribution procedures are fully completed.
3. Deposit Agreement
- Detailed information: Clearly state the parties’ information, deposit amount, total purchase price, payment deadlines, and tax/fee responsibilities.
- Penalty clauses: Explicitly define the deposit forfeit and compensation terms for breach of contract.
- Execution: Execute the agreement at a notary office or in the presence of witnesses.
4. Payment
- Bank transfer: Conduct payments via bank transfer with clear transaction descriptions.
- Payment structure: Pay 95% of the total value initially.
- Withholding: Hold back the remaining 5% until the title transfer procedure is fully completed.
5. Notarization
- Location: Execute the official Sales Contract at a notary office located in the province/city where the property is situated.
- Deadline: Complete the title transfer registration within 30 days from the notarization date.
6. Tax Obligations
- Personal Income Tax: 2% of the property value (typically paid by the seller).
- Registration Fee: 0.5% of the property value (typically paid by the buyer).
Note: Upon taking possession of the house or land, ensure to sign a Handover Minute that details the actual land boundaries, keys, and current state of the property assets.
