Vietnam to Restrict Real Estate Notarization by Province Until 2027

The recent amendment to the Law on Notarization, set to take effect in 2027, introduces a significant shift by restricting notaries to real estate transactions within their provincial jurisdiction. This move, while aiming to enhance legal certainty and prevent fraudulent multiple notarizations of the same property, has sparked debate.

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The amendment to the Law on Notarization, with some provisions effective from January 1, 2027, includes an important content regarding the authority to notarize transactions involving real estate.

Proponents argue that this geographical limitation is a necessary safeguard, especially given the current fragmented state of national notarization databases. In Vietnam's civil law system, notaries not only verify documents but also the substance of transactions. This often requires on-site verification of the property itself, a task that becomes more complex and risky when dealing with properties outside a notary's immediate locality.

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Notaries of notarization practice organizations shall only notarize transactions involving real estate within the province or city where the notarization practice organization is headquartered, except for the notarization of wills, deeds of renunciation of inheritance, powers of attorney related to the exercise of real estate rights, and the notarization of amendments, supplements, termination, and revocation of these transactions as prescribed by law.

However, some have called for the complete removal of geographical boundaries, advocating for a more streamlined process. The government's response indicates a phased approach, promising to lift these restrictions once a unified, nationwide notarization database is fully functional and interconnected with other relevant databases. This suggests a cautious but forward-looking strategy, balancing immediate security concerns with the long-term goal of facilitating smoother real estate transactions across the country.

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The Government shall stipulate the roadmap for implementing notarization authority for transactions nationwide after the notarization database is operational and related databases are announced by the managing agencies.

This policy is particularly relevant in Vietnam, where real estate is a major component of the economy and a significant asset for many citizens. The government's focus on ensuring legal safety for these high-value transactions reflects a broader concern for economic stability and investor confidence. The phased implementation acknowledges the technical challenges while signaling a commitment to modernization.

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Limiting the scope of real estate notarization according to administrative boundaries is consistent with Vietnam's notarization model - content notarization.