What property buyers should do before paying a deposit and signing a deed

A red certificate alone does not prove that a property transaction is safe, Vietnamese lawyer Mai Thanh Bình warns. Buyers should verify who owns the property and who has the legal authority to dispose of it before handing over money.

Under Vietnam’s 2024 Land Law, land users may transfer, donate or mortgage land-use rights only when legal conditions are met. The property must have a certificate, face no unresolved dispute, not be subject to seizure for enforcement and still have a valid use period.

Buyers should check whether the property belongs solely to one person or jointly to spouses. They should also identify co-owners, co-heirs and other people with related rights. The property’s certificate and the parties’ identity documents should be checked for authenticity, along with any dispute, seizure, transaction restriction or mortgage.

Thanh Bình recommends notarizing the deposit agreement instead of waiting until the final transaction. A notary can help check the property’s legal status before the parties proceed.

The agreement should state the property’s full details, including the land parcel, certificate, area, address, house and attached assets. It should also identify everyone entitled to transact, as possession of the certificate alone does not establish that authority. Under Vietnam’s 2015 Civil Code, the parties can set terms covering price, payment, timing, location, obligations, breach liability and dispute resolution.