Are you considering buying an apartment but worried about the House ownership certificate issue? This article will help you better understand the procedures, risks, and important considerations when buying an apartment that does not yet have a House ownership certificate. Let’s explore together to make the wisest decision for your future home!

What is a House ownership certificate for Condominiums and Why is it Important?

The pink book for an apartment is a document that proves your legal ownership of the apartment. It is like an “ID card” for your house. When you have the house ownership certificate, you will be completely at ease with ownership and can easily carry out transactions such as buying, selling, mortgaging, or renting.

Legally, the Sổ Hồng is referred to as the certificate of land use rights, ownership of houses, and assets attached to the land. When the investor completes according to regulations, the transaction is legitimate. Both parties can freely exchange, buy, and sell, and have the right to be issued a House ownership certificate according to the law.

Why Should You Buy an Apartment Without a Red Book?

Attractive prices: Generally, apartments without ownership certificates will be sold at lower prices compared to those with ownership certificates.

Investment opportunity: For those with a long-term vision, buying an apartment without a House ownership certificate can be a profitable investment opportunity when the real estate market grows.

Risks When Buying an Apartment Without a Red Book

Loss of ownership: If a legal dispute occurs, you may lose ownership of the apartment.

Difficulty in obtaining loans: Banks often require the red book when you want to borrow money to buy a house.

Restrictions on transfer: Buying and transferring ownership of an apartment without a House ownership certificate will be more complicated and time-consuming.

Legal risk: If the project encounters issues, the likelihood of you receiving the land use right certificate will be delayed or not granted.

Procedures for Buying an Apartment Without a Red Book Regarding Transfer Conditions

According to Clause 2, Article 123 of the 2014 Housing Law, detailed guidance is provided by Article 32 of Circular 19/2016/TT-BXD, the conditions for transferring a commercial housing purchase contract are as follows:

According to Clause 2, Article 123 of the 2014 Housing Law, detailed guidance is provided by Article 32 of Circular 19/2016/TT-BXD, the conditions for transferring a commercial housing purchase contract are as follows:

  • Organizations and individuals who purchase residential properties from the investor of the commercial housing project have not yet received the handover of the residential properties or have already received the handover of the residential properties.
  • The application for the issuance of the Certificate has not yet been submitted to the competent State authority.

Regarding the form of buying and selling

According to Clause 1, Article 123 of the 2014 Housing Law, the buying and selling of housing must be established through a contract containing the contents specified in Article 121 of the Housing Law.

Step 1: Draft the sales contract: Both parties agree to draft a document for the transfer of the housing sales contract.

Step 2: Notarize or authenticate the contract: Take the contract to the notary office for authentication.

Step 3: Tax and fee declaration: Fulfill tax payment obligations according to legal regulations.

Step 4: Submit the application for the investor’s confirmation: Submit the complete application to the investor to obtain confirmation of the contract transfer. The application package will include: – 5 original copies of the housing purchase and sale contract transfer document (including 1 copy from the transferor) – The original signed purchase contract with the investor – Tax payment receipt or documents proving tax exemption

  • Certified copies of valid ID cards, identity cards, or passports for verification

The investor will be responsible for verifying the transfer document within 5 working days from the date of receiving the application.

Note When Buying an Apartment Without a House ownership certificate

Research thoroughly about the investor.

Buy directly from the investor:

The buyer will sign the contract directly with the investor. In the case that the House ownership certificate has not yet been handed over at the time of delivery, the purchase and sale contract needs to be notarized to ensure its legality.

Buying from a secondary investor:

If you buy an apartment from a secondary investor, you must do so through a real estate exchange according to the terms of Circular 16/2010 of the Ministry of Construction and the law on real estate business.

Project legal review.

If buying from an individual or household, to ensure legality, you need to request the presentation of the apartment sale contract with the previous investor before notarization.

Request the investor to commit to the timeline for issuing the House ownership certificate

Keep all invoices and documents.

Legal advice.

Buying an apartment without a house ownership certificate can bring price benefits but comes with many risks. Before making a decision, you should carefully consider, thoroughly research the information, and consult with experts.

Advice: If you don’t want to face too many risks, prioritize choosing apartments that already have ownership certificates or reputable projects with guaranteed construction progress.