Generally, there are three main steps of this process :
- First of all, once you have chosen the property you want to acquire, you may have to sign a reservation agreement. It legally links the buyer and the seller, by a promise of contract. This step may include to paying a deposit to the seller.
- Then comes the due diligence, which is a very important step. For the due diligence, the buyer is to check the reliability of the seller (ID or registration certificate, proof that he is allowed to contract legally), as well as the property he or she is selling (title certificate for the land, planning permission, building license, a relevant and trustable permission for the project). This step also allows the buyer to ask for a bank guarantee or insurance, to ensure the seller is trustworthy.
- Once the due diligence has been completed, comes the step when buyers and sellers confirm their engagement and interest, and sign the selling contract. At this stage, the buyer is often asked for the first payment.
After having contracted and completed all the administrative tasks, the buyer will receive the Land Use Right Certificate (LURC), which is the official administrative document for land renting in Vietnam. It is a legal obligation to have this document, but also to pay the rent of the land to the government.
Using a lawyer during the purchasing process
During the purchasing process, it is advised to consult an English-speaking lawyer, as the different steps to acquire property in Vietnam may be tough. This would ensure that the right process has been taken, especially regarding the agreement specifying roles, responsibilities, terms, conditions, legal fees, and that all the necessary data had been collected for the due diligence. A lawyer would also correctly schedule all the key dates of the process, ensure communication between the parties and have an advisory role. Not to mention that a lawyer can eliminate, or at least minimize, any language barriers that may cause misunderstandings.