1. What is an apartment? What is an apartment flat?

Based on the National Technical Regulation on apartment buildings QCVN 04:2021/BXD issued with Circular 03/2021/TT-BXD:

Apartment is a self-contained housing unit that meets daily needs of a family, an individual or a group of individuals. A flat can have one or multiple functional spaces namely: living room – general space; working, studying space; worshipping space; bedroom(s); dining room; kitchen; sanitation areas; laundry and drying spaces; balcony or loggia; storage space.

Apartment flat is a flat located in a residential apartment or a mixed-use apartment to house a family, an individual or a group of individuals.

2. What are the available options for buying an apartment in Vietnam?

According to the provisions of Clause 2, Article 17 of the Housing Law 2023, foreigners can buy apartments in Vietnam through the following forms:

• Buying from the investor of the project that develops the apartment or apartment flat;
• Buying from foreign organizations or individuals who have already owned the apartment or apartment flat through form (1).

3. What are the requirements for buying an apartment in Vietnam?

According to Article 18 of the Housing Law 2023 and Article 3 of Decree 95/2024/NĐ-CP, foreigners buying apartments in Vietnam must meet 02 conditions:

• Not be entitled to diplomatic privileges or immunities.
• Holding a valid passport with an entry stamp into Vietnam; or equivalent legal documents for entry into Vietnam at the time of signing the housing transaction.

4. How many apartments can be owned in Vietnam?

According to Clause 1, Article 19 of the Housing Law 2023, foreigners are only allowed to buy and own no more than 30% of the total number of apartments in an apartment building.

If there area multiple apartment buildings in an area with population equivalent to that of a ward, foreigners are allowed to own no more than 30% of the apartments in each building and no more than 30% of the total number of apartments in all buildings.

5. How long can foreigners own apartments in Vietnam?

In addition to the regulations on conditions and the number of apartments that can be owned, the ownership period is also a matter of concern for many foreigners, especially those who buy houses not only for living but also for investment purposes. According to Article 20 of the Housing Law 2023, foreigners are allowed to own apartments for a period agreed upon in the sales contracts, but not exceeding 50 years from the date of issuance of the Certificate of Home Ownership, and can be extended once for a period not exceeding 50 years if needed.

6. ​What should be noted before signing a contract to buy an apartment in Vietnam?

Apartment is a high-value asset, so when signing a purchase contract, parties, especially the buyer, need to carefully review the information in the contract to avoid potential legal risks after signing.

a. Checking information of parties and apartment

The first content parties need to note in an apartment purchase contract is the information of the seller, buyer, information about the apartment flat, and the purchase price.

​Seller’s information

• The seller's information to be checked includes their full name, date of birth, legal documents, and address, phone number. The seller's information must be accurately recorded in the contract.
• The buyer also needs to verify the information to determine if the seller is the owner of the apartment flat or the investor of the apartment flat. According to regulations, only the apartment owner and the apartment flat investor have the right to sell apartment flats.
• The law does not allow project investors to authorize other organizations or individuals to sign contracts for buying and selling houses in real estate projects. Therefore, contracts for buying and selling houses in real estate projects signed by organizations or individuals authorized by the investor will be invalid due to violating legal prohibitions.

​Buyer’s information

• The buyer's information to be checked includes their full name, date of birth, legal documents, and address, phone number. If the buyer is a married couple, information about both spouses is required. In cases where one spouse represents the other in signing the contract, a power of attorney is needed.
• The buyer needs to verify their accurate information on the apartment purchase contract. This information is crucial for the competent authority to issue a Certificate of Ownership to the buyer after completing the apartment purchase procedures.
• If the information in the contract is incorrect, it will lead to incorrect information on the certificate, causing time and cost to correct, as well as affecting the buyer's rights in case of disputes.​

Information about the apartment flat and sale price

• Before signing the contract to purchase an apartment flat, buyers should also pay attention to information related to the apartment, such as: address, area, whether it is furnished or unfurnished, whether the apartment flat is completed or under construction, and whether it has been issued a Certificate of Home Ownership. If it has, compare the information on the Certificate and the contract to ensure they match.
• It is necessary to check the original Certificate of Land Use Rights and Assets Attached to Land to see if the apartment is mortgaged to any bank.
• Additionally, buyers should ensure that the price on the contract is consistent with the agreement between the parties and check if there are any additional costs.

​b. Timeframe for receiving the Certificate of Home Ownership

• According to Article 39.8 of the Housing Law 2023, the time of handing over the apartment flat is the basis for calculating the time when the investor requests the competent state agency to issue a Certificate of Ownership to the buyer.
• Accordingly, within 50 days from the date the investor hands over the apartment flat to the buyer or 50 days from the time the buyer has fully paid according to the contract, the investor must proceed with the procedures to request the competent state agency to issue a Certificate of Ownership to the buyer.

c. Service fees for using apartments, apartment flats

• When signing the contract to purchase an apartment, buyers should note information related to service fees. Typically, the sale price of an apartment flat does not include service fees.
• Currently, apartments have various service fees such as apartment maintenance fees, parking fees, and apartment management service fees.

d. Apartment project agreement

In addition to the above documents, foreigners should pay special attention to the apartment purchase agreement. The following contents should be carefully considered before signing the contract:​

• Payment schedule: Buyers typically need to pay a maximum of 70% of the apartment's value until receiving the Land use rights certificate, after which they will pay 100% of the value. If the buyer purchases the apartment through an installment payment plan, specific agreements should be made regarding the payment schedule, rights, and obligations of the parties in the contract. The responsibilities of the parties when failing to fulfill the contractual agreements must also be thoroughly discussed and clearly stated in the sales contract.
• Specific information about the apartment: This includes location, unit number, project name, sale price, apartment area, accompanying amenities (if any), and information about service fees and utilities.
• It should be verified whether the person signing the contract is a legal representative of the real estate business;
• Liability for damages in case of contract breach…

7. What are the procedures for buying an apartment in Vietnam?

Step 1: Prepare necessary documents

For foreigner (Buyer):

• A valid passport with an entry stamp verified by the Vietnamese immigration authority.
• A valid visa for entering Vietnam (ensure that the contract signing occurs within the visa’s validity period).
• Or a visa exemption certificate for foreigners who have a Vietnamese spouse, child, or Vietnamese citizens residing abroad.

For seller:

• ​In the case of purchasing from the project investor:
  • Enterprise registration certificate with a real estate business sector;
  • Investment license, document approving the investment policy;
  • Certificate of Land Use Rights (original);
  • Construction permit (original);
  • Documents certifying the completion of infrastructure construction (original);
  • Certificate of Home Ownership (original).
  • Other documents proving the legal ownership of the apartment.

• In the case of purchasing from a foreigner who owns the apartment:
  • Certificate of Apartment Ownership (original);
  • Sales contract signed with the investor (original);
  • Contract transfer document;
  • Valid passport with entry stamp verification for cases of purchasing from a foreigner who owns the apartment.
  • Other documents proving the legal ownership of the apartment.

Step 2: Choose apartment and make a deposit

Foreigners select their desired apartment and proceed to make a deposit to register their buy with the investor or broker. 

Making a deposit involves one party giving a sum of money or valuable items such as precious metals, gems, or other valuable objects for a specified period to ensure the conclusion or execution of a contract, as stipulated in Article 328 of the Civil Code 2015. A deposit contract can be understood as a preliminary contract that will lead to another transaction at a later time. At this point, the following cases can occur:

Case 1: If the contract is concluded:

• The deposited asset is returned to the depositor; or
• The deposited asset is used to fulfill the payment obligation.

Case 2: If the depositor refuses to conclude or execute the contract when the deposit period ends, the deposited asset belongs to the recipient.

Case 3: If the recipient refuses to conclude or execute the contract when the deposit period ends:

• The recipient must return the deposited asset to the depositor; and
• Pay an amount equivalent to the value of the deposited asset to the depositor.

In addition, if the two parties have other agreements, when the deposit contract cannot be fulfilled, the two parties must follow that other agreement.

The law does not require mandatory notarization of deposit contracts. However, to ensure legal validity and prevent potential disputes, parties may consider notarizing the Deposit Contract.

Step 3: Sign the purchase contract and make payment

The parties sign the Sales Contract according to the committed term in the deposit contract. 

According to Clause 1, Article 164 of the 2023 Housing Law, the sales contract for an apartment must be made in writing and notarized or attested. The effective date of the sales contract is the date it is notarized or attested.

The parties can have the sales contract notarized at notary offices or attested at the People's Committee of the commune where the apartment is located.

The buyer pays according to the payment schedule specified in the Sales Contract, with the payment unit being Vietnamese Dong.

Step 4: Handover of housing and issuance of property ownership certificate

Upon completion of construction, the Investor/Owner sends a notice of apartment handover according to the schedule in the contract to the foreigner.

Within 50 days from the date of handing over the house to the buyer, the Owner/Investor must submit an application to the competent state agency to issue a Certificate of Ownership to the buyer, unless the buyer voluntarily applies for the certificate.

8. FAQ

Currently, when buying and selling apartments, foreigners often worry about many issues related to the costs incurred when buying an apartment. Below is information to answer some frequently asked questions when buying an apartment.

a. What costs do you need to pay when buying an apartment?

Currently, when buying and selling apartments, the parties must pay some mandatory costs as follows:

• Notarization fee for the apartment sales contract
• Personal income tax
• Registration fee: The rate is 0.5% (according to Decree 10/2022/NĐ-CP)

b. If a foreigner buys and sells to another foreigner, how long can the new buyer own it?

In cases where a house is sold to a foreign organization or individual who is eligible to own a house in Vietnam, the buyer can only own the house for the remaining term; when the remaining ownership term expires and the owner wishes to extend it, they can be considered by the State for an extension.