When you purchase a property from a developer, it’s important that you receive an ownership certificate. In 2017, foreigners had issues getting their property ownership certificates, this understandably caused some frustration.
So why did this happen?
According to law, foreigners cannot own properties in areas that are reserved to protect the national defense and security.
And it’s up to the Ministry of National Defense and the Ministry of Public Security to decide whether a property is located in an area that is reserved to protect the national and security.
Cannot stress the importance that you make sure that your prospective property can be owned by you as a foreigner, and confirm, before the purchase, that you will be able to receive the ownership certificate.
The pink book
The ownership certificate is often referred to as the pink book. The name comes from the small pink book that you should receive after you purchased a property.
The book proves your ownership and your rights to the property. It will give you the right to lease your property and declare information regarding inheritance, for example.
Shortly speaking, pink books are used for the title to verify the ownership of properties.
Do I need to receive the pink book when buying property in Vietnam?
Shortly speaking, the pink book is used for the title to ownership of property. Even if an SPA (Sales and Purchase Agreement) can be used to prove that you bought the property, the strongest evidence of ownership is to have both of them.
- The pink book is considered the strongest proof of ownership, though it’s not a legal requirement to have one
- The SPA (Sales and Purchase Agreement) is equally, if not more, important
- You can face more difficulties to sell your property without having the Sales and Purchase Agreement.