For every real estate transaction, there must be a notarized contract to seal the deal. This document will protect you from future disputes about the purchase, so it must be clear, transparent, and enforceable. Understanding this contract – the Sales and Purchase Agreement (SPA) is vital for property transactions in the market for foreigners who want to own property in Vietnam.
This article will break down the SPA in smaller components. What is it, and why should you read it all the way through? We’ll discover how this powerful document paves the way for your first property purchase in Vietnam.
What is an SPA?
Cash payment is often the last step in real estate transactions. To successfully close the deal, you’ll have to go through quite a number of steps that involve legal parties, buyers/sellers, and potentially agents to speed up the process.
An SPA is required to control this procedure and safeguard both the buyer and the seller. Vietnamese law requires a written and notarized SPA to validate the property purchase.
Once the seller receives a deposit from the buyer, the SPA is signed, the buyer becomes the new owner of the property.
The SPA’s structure
While there are numerous SPA samples on the Internet for your reference, we recommend working with a trustworthy notary office that can both advise and authenticate the deal.
Now we’ll go through an example contract and go over all of the important details that will come in handy for your (first) purchase.
Personal information of all related parties
There are three primary parts of information on the first page of this contract:
Information about the seller
The seller of the property could be an individual or a business. This section provides the following information:
- Full name
- Address ID/Passport number or corporate registration number
- Date of birth
- Contact information
Information about the buyer
Similarly, the buyer’s information must include the following:
- Full name
- Address ID/Passport number or corporate registration number
- Date of birth
- Contact information
Is it possible for me to appoint someone to buy or sell on my behalf?
Of course! A buyer or seller might designate a third party that is not connected to the property to act as their agent.
Top tip: If you hire an attorney to sell your property, be aware that you will be subject to double income taxation in Vietnam.
Information about the property
The property’s important details can be found here. Depending on the type of property, you’ll have to provide different types of information. Consider the following:
- Condominiums: Apartment number, name of property development project, address, number of pink book issued, size, ownership time, and so on.
- Additional land and assets (if any), address, land lot number, number sheet, map sheet, year of construction, area, land use rights, and so on.
Top tip: Use the pink book to see if the information has been updated.
Conclusion
The SPA is an important document in property transactions in Vietnam and a complicated one at most. By signing the SPA, you’re one step closer to your dream home in Vietnam.
In case you’re unfamiliar with how the legal system works in Vietnam, Homebase can help with it. Their team works well with foreign customers and offers highly accessible solutions to homeownership. The company is backed by multi-billion dollar funds around the world and will assist you with every step on the way, from choosing your dream project to helping you move in within 1 working week.
To find out more about Homebase, call +84 94 823 00 33 or visit http://homebase.com.vn/ today.
This article is co-created with Homebase, a proptech company that reimagines homeownership in Southeast Asia by bringing more accessible solutions than traditional mortgages. For more information, visit their website at http://homebase.com.vn/.