I see that the transaction price in handwritten paper is only half that of a house with a red book, but when renting, the price is the same (Bao Binh).
Should I buy for rent or not?
Hello, according to Clause 3, Article 167 of the 2013 Land Law, the purchase and sale of real estate must be made in writing and notarized and authenticated in accordance with the law.
The law does not admit that buying and selling a house through handwritten papers, so buying a house with handwritten papers to rent will face many risks. Here are some common risks:
First, normally when buying a house with hand papers, the original red book is kept by someone else (a large parcel of land with many unauthorized houses built on it, ineligible to split the parcel, apply for a separate red book, and one person who keeps the original red book of many houses) so the holder of the original red book can mortgage the real estate on the red book at the bank. Unfortunately, if they lose their solvency, the bank will take the buyer’s part of the property by hand paper (because on the legal side this real estate is an asset to secure the loan).
Second, in many cases, tenants, because of greed or intentional fraud from the beginning, should take the house they rent and use the excuse to borrow a copy of the house paper to register for temporary residence; but the truth is to sell this house by hand to someone else for a cheap price.
In my opinion, if you buy this type, you will not be recognized by law, so most of the legal risk will belong to you.
Lawyer Pham Thanh Huu
Ho Chi Minh City Bar Association