Currently, resettlement housing is receiving significant attention from the government and investors to meet the growing housing demand. So, how do we understand what a resettlement housing purchase agreement is and what related issues surround it? Let's explore the current legal regulations on such a matter below with NPLaw.

I. Overview of resettlement housing purchase agreements

1. What is a resettlement housing purchase agreement?

A resettlement housing purchase agreement is a legal instrument entered into between the seller (typically a State authority or an entity assigned to manage resettlement projects) and the buyer (households or individuals eligible for resettlement), serving as the basis for the transfer of ownership of residential premises within a resettlement project.

2. Is the purchase and sale of resettlement housing permitted?

Under current law, resettlement land is essentially classified as residential land. Accordingly, individuals or households compensated with resettlement land are fully entitled to transfer such land to others, provided that all legal documents and procedures are duly completed.

The transfer of resettlement land must satisfy the conditions prescribed in Clause 1 Article 45 of the Law on Land 2024, specifically:

  • The land user may exercise rights to exchange, transfer, lease, sublease, inherit, donate land use rights; mortgage and contribute capital using land use rights when all of the following conditions are met:
  • A valid Certificate of land use rights, ownership of houses and other assets attached to land; except in cases of inheritance, consolidation and exchange of agricultural land, donating land to the State or a residential community, and cases specified in Clause 7 Article 124 and Point a Clause 4 Article 127 of the Law;
  • The land doesn’t fall under disputes or the dispute has been resolved by the competent authority, court judgments, decisions, or arbitral awards that have taken legal effect;
  • The land use right is not subject to distraint or other enforcement measures;
  • The land remains within the prescribed period of use;
  • The land use right is not subject to any provisional urgent measures.

Thus, a transaction involving resettlement land must meet four core conditions:

  • A valid Certificate of land use rights for the resettlement plot;
  • The resettlement land is not subject to disputes;
  • The land use right is not distrained for judgment enforcement;
  • The land remains within the statutory land use term.

II. Legal provisions governing resettlement housing purchase agreements

1. Essential contents of a resettlement housing purchase agreement

Pursuant to Article 163 of the Law on Housing 2023, housing-related contracts must be made in writing and include the following:

  • Full names of individuals, names and addresses of the contracting parties;
  • Description of the housing and the land plot associated with it.
  • For apartment purchase and lease agreements, the parties must clearly specify the common areas and shared uses; the term of use of the apartment building as per the design; the usable area under private ownership; the floor area of ​​the apartment; the purpose of use of the common areas and shared uses in the apartment building in accordance with the approved design; the price of apartment building management and operation services in cases where the first apartment building residents' meeting has not yet been held; the responsibility for payment, the amount of maintenance fees, and the account information for paying maintenance fees;
  • Transaction value or capital contribution value (if applicable). If the State prescribes a mandatory price, the parties must comply accordingly;
  • Payment terms and methods;
  • Time of delivery and receipt of the housing; warranty period (for newly constructed housing); terms regarding lease-purchase, lease, mortgage, lending, or entrusted management; capital contribution period; ownership period in the case of buying and selling housing with a limited term;
  • Rights and obligations of each party. For lease-purchase agreements, the parties must specify their respective responsibilities for repairs;
  • Parties’ commitments;
  • Additional agreed terms;
  • Effective date of the contract;
  • Date of execution;
  • Signatures, full names, and titles of the signatories; and affixation of seals (if applicable).

Accordingly, resettlement housing purchase agreements must contain all the above-mentioned information.

2. Eligible parties to engage in resettlement housing purchase agreements

The following entities are eligible:

  • Households or individuals whose lawful housing is subject to demolition due to State expropriation of land for national defense, security, or projects serving national or public interests;
  • Households or individuals whose residential land is expropriated and who must relocate, but who do not meet the conditions for compensation for residential land and have no alternative residence;
  • Households or individuals owning apartment buildings subject to demolition for reconstruction.

III. Questions regarding resettlement housing purchase agreements

1. Is notarization required for resettlement housing purchase agreements?

Based on the provisions of Clause 2, Article 164 of the Housing Law 2023 regarding notarization and authentication of housing agreements and their effective date, the following applies: In cases where an organization donates housing for charitable purposes or housing for national solidarity; buys, sells, or leases housing belonging to public assets; buys, sells, or leases housing where one party is an organization, including social housing, housing for the armed forces, and housing for resettlement; contributes capital in the form of housing where one party is an organization; rents, borrows, temporarily occupies, or authorizes the management of housing; notarization or authentication of the contract is not required, except when the parties so desire.

According to the above regulations, housing for resettlement does not require notarization or authentication of the contract, except when the parties so desire.

2. When commercial housing is procured for resettlement purposes, does the resettled person sign the contract with the State authority or with the project developer?

Pursuant to Clause 1, Article 52 of the Law on Housing 2023, the purchase of commercial housing for resettlement purposes is regulated as follows:

For the purchase of commercial housing to serve resettlement purposes, the entity assigned to conduct resettlement arrangements shall enter into either a housing sale and purchase agreement or a housing procurement agreement with the developer of the housing construction investment project in order to allocate such housing to eligible resettled persons, in accordance with the following provisions:

  • If the resettlement authority enters into a commercial housing sale and purchase agreement with the developer of the housing construction investment project, the resettled person shall directly execute a sale and purchase, lease-purchase, or lease agreement with the resettlement authority and receive the handover of the housing from such an authority.
  • If the resettlement authority enters into a purchase agreement for the purchase of housing with the developer of the housing construction investment project, the resettled person shall directly execute a housing sale and purchase agreement with the developer based on the terms and conditions agreed upon in the housing purchase agreement.

The People's Committee at the provincial level is responsible for determining the number of housing to be purchased, ensuring that it corresponds to the actual resettlement demand within its locality. Persons eligible for resettlement are responsible for taking over the housing in accordance with the commercial housing purchase agreement.

The developer of the housing construction investment project is responsible for implementing the procedures for applying to the competent state authority for the issuance of the Certificate of Land Use Rights, Ownership of Residential Housing and Other Assets Attached to Land (Certificate) to resettled persons purchasing or lease-purchasing housing as prescribed in Points (a) and (b) of this Clause, unless the purchaser or lease-purchaser voluntarily undertakes the application procedures for the issuance of the Certificate.

IV. Legal consultancy and support services for resettlement housing purchase agreements

The above analysis provides a detailed overview of the legal framework governing resettlement housing purchase agreements. Should you require further clarification on this matter or need assistance with related legal procedures, NPLaw is ready to offer professional, reliable legal support to safeguard your legitimate interests.