Procedures for Overseas Vietnamese Authorizing Real Estate Transactions in Vietnam

Procedures for Overseas Vietnamese authorizing real estate transactions in Vietnam are executed based on the regulatory system of the 2024 Land Law and the 2024 Notary Law. This process requires meticulous preparation of legal dossiers and authentication at competent agencies. In the following article, Long Phan Consulting Company provides detailed guidance to help you successfully execute the procedures for overseas Vietnamese authorizing real estate transactions in Vietnam.

Documents required when applying for procedures for overseas Vietnamese authorizing real estate transactions in Vietnam

The dossier components decisively determine the legality of the entire real estate transaction process conducted through a representative. You must clearly distinguish between documents proving subject capacity and documents directly related to the authorization content. The omission of any document in the prescribed list can lead to the functional agency rejecting the dossier or requesting supplements, causing execution delays.

Documents proving the right to purchase real estate in Vietnam

To execute the authorization procedure, proving the right to own real estate in Vietnam is a prerequisite. Current legal regulations clearly distinguish the required documents based on the authorizing person’s nationality status. This ensures that only legally permitted subjects can participate in real estate transactions, protecting the lawful rights of related parties.

• For Vietnamese Residing Abroad (Retaining Vietnamese Nationality): You must prepare a Passport or identity documents proving Vietnamese nationality, such as an Identity Card (CMND) or Citizen ID Card (CCCD), as prescribed in Point a, Clause 2, Article 3 of Decree 95/2024/ND-CP. These documents prove you are a Vietnamese citizen, and under the 2024 Land Law, Vietnamese citizens have the right to own housing and use land. You need to provide 02 notarized copies of each document type for both the authorizing person and the authorized person. This is necessary to identify the parties and their lawful rights in the authorized transaction.
• For People of Vietnamese Origin (Without Vietnamese Nationality): Under the 2024 Land Law, people of Vietnamese origin who no longer hold Vietnamese nationality but are permitted to enter Vietnam have the right to own housing attached to residential land use rights in Vietnam. To prove this right, you must prepare a Certificate of Vietnamese Origin issued by a competent Vietnamese agency, along with valid entry documents (visa or temporary residence card) as prescribed in Point b, Clause 2, Article 3 of Decree 95/2024/ND-CP. Similarly, 02 notarized copies of these documents are required for both the authorizing person and the authorized person. Clear proof is the core element to ensure the authorized transaction is lawful.

>>> See more: Real Estate Power of Attorney in Vietnam Guide

Documents regarding authorization for buying and selling real estate in Vietnam

To execute the authorization, real estate-related documents are indispensable. Comprehensive and accurate preparation of these documents provides the authorized person with the basis to execute related procedures. This acts as evidence of the asset’s information and status, ensuring the authorizing person’s rights during the transaction.

• The Certificate of Land Use Rights, Housing Ownership, and Land-Attached Assets (Red Book/Pink Book) of the intended real estate, or detailed information about the real estate (if a book hasn’t been issued).
• Documents proving the asset’s origin (if any), previous transfer, donation, or inheritance contracts.
• Information regarding the address, area, and status of the housing/land to ensure the authorization content is specific and accurate.
• Asset schematics/drawings (if any) to clearly illustrate the location and boundaries.
• Other documents requested by the seller or prescribed by law at the time of the transaction.

The procedures for overseas Vietnamese authorizing real estate transactions in Vietnam

The process of executing an authorization to buy real estate must comply with current laws, specifically the 2015 Civil Code and the 2024 Notary Law. For Overseas Vietnamese, this is usually done through an authorized person in Vietnam.

Currently, Article 138 of the 2015 Civil Code explicitly states: “Individuals and legal entities may authorize other individuals and legal entities to establish and perform civil transactions.” This regulation allows individuals to authorize others to execute civil transactions, including buying/selling real estate and processing the Red Book. To authorize a purchase and have the Red Book issued in your name, the procedures for overseas Vietnamese authorizing real estate transactions in Vietnam follows these specific steps:

Step 1: Prepare Necessary Dossiers

Collect all documents prescribed by law:

• Documents proving the right to buy: Passports/IDs for Vietnamese citizens, or Certificates of Vietnamese Origin and entry documents for those without nationality (02 notarized copies each for both parties).
• Real Estate Documents (if specific): Red/Pink Book, origin proofs, address, area, and status information.

Step 2: Draft the Authorization Document

The authorization document is the core of this transaction. Ensure the content is:

• Specific and clear: Highlight the exact rights granted to the authorized person.
• Comprehensive: The right to sign transfer contracts, submit dossiers for Certificate issuance, pay taxes/fees, and act as a representative with state agencies.
• Legally binding: You should have a lawyer or expert assist in drafting this to ensure compliance with the 2015 Civil Code.

Step 3: Notarize the Authorization Document

If you are present in Vietnam, the document is notarized at a competent Notary Office or Notary Public Office. The Notary Public will check the parties’ IDs and the document’s content before notarizing, confirming the signatures and lawful content.

Step 4: Execute Transactions and Procedures in Vietnam

The authorized person will use the notarized document to represent you in executing the purchase and related procedures, including:

• Negotiating and signing the transfer contract.
• Submitting dossiers at competent state agencies (Land Registration Office) to execute title transfers and have the Certificate issued in your name.
• Fulfilling financial obligations (taxes, fees) under the 2024 Land Law.

Authorization procedures at Vietnamese diplomatic missions or consulates abroad

For Overseas Vietnamese who wish to execute an authorization but cannot return to Vietnam, performing the procedure at a Vietnamese Diplomatic Mission or Consulate abroad is the solution. This ensures the document’s legality and facilitates domestic transactions for expatriates.

Step 1: Draft the Authorization Document

Draft a document clearly stating the authorized contents (signing contracts, submitting Certificate dossiers, related procedures). Utilizing professional drafting services ensures validity under the 2015 Civil Code.

Step 2: Submit Dossiers and Authenticate at the Mission/Consulate

Bring the dossier to the Vietnamese Embassy or Consulate where you reside. A consular or diplomatic officer will authenticate the document. 

Note: Under Article 73 of the 2024 Notary Law, these agencies may only authenticate authorization documents; they cannot directly notarize real estate transfer contracts in Vietnam.

Step 3: Mail the Authorization Document to Vietnam

Safely and timely mail the authenticated document to your authorized representative in Vietnam.

Step 4: The Authorized Person Executes Procedures in Vietnam

Upon receipt, the representative will act on your behalf to:

• Sign the transfer contract at a competent Notary Office in Vietnam.
• Submit the Certificate issuance dossier in your name under the 2024 Land Law and Decree 101/2024/ND-CP.
• Fulfill related financial obligations (taxes, fees).

>>> See more: Authorizing real estate sales for Overseas Vietnamese

Points to note about procedures for overseas Vietnamese authorizing real estate transactions in Vietnam

Establishing authorization content requires detail and foresight regarding practical situations arising in real estate transactions. You must clearly define the authority granted to prevent abuse of power or actions contrary to your will. Elements such as operational costs, validity periods, and document formats must be clearly agreed upon and recorded in writing to maximize economic protection and prevent future legal claims.

Scope of authorization for buying and selling real estate in Vietnam

The scope of authorization is the core content. You must clearly and specifically define the rights granted to ensure the representative does not exceed their authority. The scope may include:

• The right to search, negotiate, and sign Deposit Contracts.
• The right to sign Transfer Contracts for land use rights and housing ownership.
• The right to submit dossiers, pay taxes/fees, and execute administrative procedures for Certificate issuance in your name.
• The right to act as a representative with competent state agencies (Land Registration Office, Tax Sub-department, etc,…).
• Other related rights as directed by you.

Forms of authorization for buying and selling real estate in Vietnam

Under the 2015 Civil Code, the form can be a Power of Attorney (POA) (unilateral) or an Authorization Contract (bilateral). The choice affects the parties’ rights and obligations.

• Power of Attorney (Unilateral): Created by one party (the authorizer), expressing the intent to authorize another to perform specific tasks. It is used when no mutual binding rights and obligations are agreed upon. It must be notarized/authenticated to hold value in real estate transactions.
• Authorization Contract (Bilateral): An agreement clearly stipulating the rights and obligations of both parties. It is used for tighter binding, especially when clauses regarding remuneration, duration, and responsibilities are involved. It must also be notarized/authenticated and is highly recommended for complex or high-value transactions.

Fees for authorized real estate transactions in Vietnam

Agreeing on remuneration is a key element that must be clearly stipulated in the authorization document or contract to ensure the representative’s lawful rights and maintain a clear relationship. Remuneration can take various forms:

• Fixed Amount: A specific sum paid upon completion or at specific transaction milestones.
• Percentage of Transaction Value: Calculated as a percentage of the actual transaction value, often applied to high-value transactions.
• No Remuneration: For close relatives or friends, parties may agree to no remuneration. However, this must still be explicitly stated to avoid future misunderstandings.

The duration of authorization for buying and selling real estate in Vietnam

The duration is a mandatory clause that must be specifically determined to avoid disputes over when obligations end. The duration can be defined as:

• A specific timeframe: e.g., 01 year, 02 years from the signing date.
• Until task completion: The duration lasts until the transaction is fully completed, including contract signing, dossier submission, and the issuance of the Certificate in your name.

If not specifically stipulated, the authorization remains valid until terminated as prescribed by law (e.g., unilateral termination under the 2015 Civil Code).

>>>See more: Do the authorization contracts need to be notarized or authenticated?

Mechanism for resolving disputes in authorized real estate transactions in Vietnam

Despite meticulous preparation, disputes may arise. Clearly stipulating a dispute resolution mechanism is an effective risk-prevention measure. Common forms include:

• Negotiation: Voluntary exchange to find a satisfactory solution.
• Mediation: A neutral third party (mediator) assists the parties in reaching an agreement without going to court.
• Competent Court: If negotiation and mediation fail, parties may request the competent Court to resolve the dispute under Vietnamese civil procedure laws.

Long Phan Consulting Company provides consulting services for procedures for overseas Vietnamese authorizing real estate transactions in Vietnam

At Long Phan Consulting Company, we provide an in-depth system of solutions to help you execute real estate transactions in Vietnam as safely and efficiently as possible. Our expert team will handle complex administrative barriers on your behalf. We structure our professional support into the following key area:

• Providing legal advice on the conditions under which Vietnamese citizens residing abroad are allowed to own housing in Vietnam, procedures for overseas Vietnamese authorizing real estate transactions in Vietnam.
• We provide consultation and support in preparing and drafting documents, and guide Vietnamese citizens residing abroad through the procedures for authorizing the purchase and sale of real estate in Vietnam.
• Draft a power of attorney agreement with clauses that provide maximum protection for the rights of the principal.
• Instructions on the procedures for authenticating documents at Vietnamese diplomatic missions abroad.
• Check the legal status of the property you intend to buy or sell to prevent potential disputes or zoning issues.
• The representative will contact notary offices in Vietnam to complete the signing process on behalf of the authorized party.

Frequently Asked Questions about the procedures for overseas Vietnamese authorizing real estate transactions in Vietnam

Below are frequently asked questions regarding the procedures for overseas Vietnamese authorizing real estate transactions in Vietnam. We invite interested customers to refer to this information.

Can Vietnamese citizens residing abroad authorize foreigners in Vietnam to conduct land transactions on their behalf?

Yes, however, the scope of authority of a foreign authorized representative will be limited by their legal capacity and the conditions of their real estate ownership in Vietnam.

Based on Article 138 of the 2015 Civil Code, you have the right to choose an individual as your representative. However, to ensure enforceability when signing at the Land Registration Office, the authorized person should be a Vietnamese citizen with full legal capacity to avoid complex explanations regarding the ownership conditions of foreigners as stipulated in Article 4 of the 2024 Land Law.

Is it mandatory for a power of attorney contract to specify the purchase and sale price of the real estate?

While not mandatory, it is extremely necessary to protect your financial interests. According to Article 562 of the 2015 Civil Code, the content of the authorization is agreed upon by the parties; clearly stating the minimum selling price or the maximum buying price helps prevent the representative from arbitrarily deciding on the price, which could cause financial losses.

What is the maximum duration of a power of attorney agreement for buying and selling real estate?

The law does not specify a maximum time limit but prioritizes the agreement of the parties. According to Article 563 of the 2015 Civil Code, unless otherwise agreed and the law provides otherwise, the power of attorney contract is valid for one year from the date of establishment of the authorization.

Can an authorized person re-authorize a third party?

Yes, but only in two specific cases stipulated in Article 564 of the 2015 Civil Code: with your consent or due to force majeure events where the purpose of the transaction cannot be achieved without re-authorization. The re-authorization must be in writing and must not exceed the scope of the original authorization.

Can I unilaterally terminate the authorization while I am abroad?

You have the right to unilaterally terminate the power of attorney contract at any time, but you must notify the authorized party and any third parties (if any) in writing. According to Article 569 of the 2015 Civil Code, if the power of attorney is for a fee, you must pay the fee corresponding to the work performed and compensate for damages; if there is no fee, you must still give the authorized party reasonable notice.

Are there any differences in the authorization documents for Vietnamese people residing abroad who have acquired foreign citizenship?

There are differences in the required documents proving eligibility. You need to provide a Certificate of Vietnamese Origin as stipulated in Article 4 of the 2008 Vietnamese Nationality Law and Article 3 of Decree 95/2024/ND-CP. This document serves as the basis for the notary public to determine that you are eligible to own housing and land use rights in Vietnam as a citizen, in accordance with the new spirit of the 2024 Land Law.

Can an authorized representative register their name on the land title deed on your behalf?

No, the authorized representative only acts on your behalf to carry out the procedures; the person named on the Certificate must be you. According to Clause 1, Article 139 of the 2015 Civil Code, the representative establishes and executes civil transactions for the benefit of the represented party. Therefore, all rights regarding land use and house ownership must be recorded for you – the actual owner of the property.

Conclusion

Procedures for overseas Vietnamese authorizing real estate transactions in Vietnam require absolute precision regarding dossiers and execution sequences. Long Phan Consulting Company is committed to accompanying you in protecting your assets and enforcing your legal rights in your homeland.

For swift and in-depth consulting support on procedures for overseas Vietnamese authorizing real estate transactions in Vietnam, please contact us directly via Hotline 1900636389 for timely answers.