Completed Houses Without Ownership Certificates: Can They Be Transferred?

Against the backdrop of significant adjustments in the 2023 Real Estate Business Law, the issue of transferring purchase contracts for completed houses without ownership certificates has sparked extensive debate and confusion. Although the 2023 Real Estate Business Law allows for the transfer of purchase contracts for future residential properties, the regulations regarding the transfer of completed houses remain unclear, leading many developers and buyers into a state of legal uncertainty.

During a dialogue conference involving law-drafting agencies, experts, and corporate representatives, Ms. Pham Thi Thinh – a senior specialist and Head of the Land Registration Division under the Land Registration and Information Data Department of the Ministry of Natural Resources and Environment – emphasized that the 2023 Housing Law permits the transfer of future residential properties that have not yet been accepted or put into use. However, for completed houses without ownership certificates, the transfer process lacks a clear legal foundation, resulting in challenges in legal application and safeguarding the interests of all parties involved.

Ms. Thinh also pointed out that, according to the transitional provisions of the new law, houses that have been handed over and put into use but do not yet have an ownership certificate can still have their contracts transferred. This implies that property owners have the right to sign transfer contracts provided that all parties reach a consensus on clear and specific terms. Nonetheless, in practice, there are still many legal complexities, such as unrecognized ownership and liability issues related to assets without ownership certificates. Mr. Vuong Duy Dung, Deputy Director of the Department of Housing and Real Estate Market Management under the Ministry of Construction, also confirmed that while the Real Estate Business Law does not prohibit the transfer of completed houses, the absence of specific regulations entails numerous risks.

Mr. Phan Duc Hieu – a Standing Member of the National Assembly's Economic Committee – added that under the Land Law, property on land is not required to be registered, meaning that completed houses without ownership certificates can still be transferred based on mutual agreement between parties. However, he also warned that buying and selling properties without ownership certificates may face many legal risks, particularly the lack of a clear legal basis to establish legitimate ownership, leading to potential difficulties and disputes in protecting buyers' rights. Issues such as financial obligations and sellers' guarantees are critical and must be thoroughly considered before proceeding with transactions.

Associate Professor Dr. Nguyen Quang Tuyen – Vice President of the School Council and Head of the Faculty of Economic Law at Hanoi Law University – further emphasized that buying and selling real estate, in essence, constitutes the transfer of ownership, usage, and management rights. According to civil law regulations, a sale is only considered lawful if the seller is the legitimate owner and the property is not subject to dispute or legally prohibited from transaction. Therefore, buying completed houses without ownership certificates requires buyers to be particularly cautious and ensure their rights are protected through appropriate legal measures. Dr. Tuyen also cautioned that transactions involving land-use rights without ownership certificates are fraught with risks, especially in cases where the seller has not yet fulfilled financial obligations.

For transactions involving properties without ownership certificates, professional legal consultation is deemed essential. Such advice not only helps buyers understand potential risks but also optimizes contract terms to protect their interests. Measures such as requiring guarantees, specifying compensation clauses in case of issues, and clarifying the rights and obligations of all parties can significantly reduce the risk of disputes arising in the future. These measures are particularly important in the context of an increasingly complex and volatile real estate market.

In general, while the Real Estate Business Law and the Housing Law do not explicitly prohibit the transfer of completed houses without ownership certificates, the lack of legal clarity makes such transactions potentially risky. Buyers must conduct thorough due diligence, seek legal counsel, and negotiate contracts cautiously to minimize unnecessary risks. Ensuring their rights through detailed contract terms and the support of legal experts is the best way to safeguard their assets from potential legal risks. Particularly in the context of a real estate market characterized by complexity and uncertainty, caution and thorough preparation are not only necessary but also crucial for the success of transactions.

Furthermore, buyers must also investigate the reputation of the developer and the legal status of the project. Projects developed by reputable developers are typically accompanied by clearer legal commitments, providing greater safety for buyers. For completed houses without ownership certificates, the reasons may relate to unfinished legal procedures or the unstable financial status of the developer. Therefore, requiring the provision of comprehensive legal documents, such as construction permits, project acceptance reports, and other relevant documentation, is an important step for buyers to protect their interests and avoid unnecessary legal risks.

In conclusion, purchasing completed houses without ownership certificates is a complex legal issue that requires buyers to be well-prepared and cautious. With the support of legal experts, clear commitments, and specific safeguards, buyers can mitigate potential risks and conduct transactions safely and effectively. The key lies in thoroughly understanding all relevant information and ensuring compliance with all legal factors to avoid undesired legal consequences in the future.