Real Estate Legalities: Red Book/Pink Book, Contracts, and Taxes & Fees When Buying or Selling Property

In real estate transactions, what costs people the most money isn't the price itself, but legal issues. A fake certificate, a loophole in the contract, or misunderstanding tax obligations can turn a billion-dong transaction into a disaster. This article helps you grasp the core legal knowledge before signing.

"Red Book," "Pink Book" — what are they really?

These two colloquial terms confuse many people. In essence:

• "Red Book": old term for the certificate of land use rights (red cover).
• "Pink Book": term for the certificate of ownership of housing and assets attached to land (pink cover).

Currently, both have been unified into one type of certificate — "Certificate of Land Use Rights and Ownership of Assets Attached to Land" (commonly called pink book). What matters isn't the book's color, but: is the certificate real, is it in the owner's name, and does it accurately record information about the land/house you're buying?

Legal verification before transacting

Before putting down any money, verify:

• Certificate legality: real, valid, issued by competent authorities.
• True owner: the seller is the named person (or has full legal authorization).
• Zoning: the land/house isn't subject to zoning plans or clearance — check with land management authorities.
• No disputes, no mortgages, no seizures.
• Co-ownership: if it's jointly owned property, consent from all co-owners is required.

Contracts — what must be included and read carefully

Real estate transactions require notarization of the purchase contract to have legal validity. In the contract, pay attention to:

• Party and property information: accurate, matching the certificate.
• Price and payment method: clear, with a schedule.
• Tax and fee obligations: who bears which costs (negotiable).
• Timing of handover and title transfer.
• Breach penalty clauses and dispute resolution.

A word of advice: don't record a price lower than actual on the contract to evade taxes. This is illegal behavior; both buyer and seller can be penalized, and the buyer bears legal risks if price disputes arise later.

Types of taxes and fees in property transfers

When buying and selling real estate, the following costs typically arise:

Note about taxable value: if the price recorded on the contract is lower than the land price table set by the Provincial People's Committee, tax authorities will calculate based on the land price table — so "recording a low price" usually doesn't help avoid taxes and actually invites risks.

Important new provision from 2026: tax exemption for sole residence

From mid-2026, new guidance on Personal Income Tax Law has clarified and added cases of personal income tax exemption on transfers, notably:

• Transfer of an individual's sole residence or residential land is exempt from personal income tax if conditions are met (it's the only real estate owned in Vietnam, and has been owned for a minimum period as specified — the threshold is set at 183 days). Note: this benefit typically does not apply to future-formed housing.
• Transfers, gifts, inheritance among relatives as specified (spouses; parents and children; grandparents and grandchildren; siblings...) continue to be tax-exempt.

Regarding long-term direction: authorities previously proposed taxing based on profit (selling price minus purchase price) or holding period to limit speculation, but this approach has been shelved for now — the current rate remains 2% on transfer price. This may change in the future when land data is fully digitized.

Note: regulations, tax/fee rates, and exemption conditions may change according to new guidance documents and vary by locality; check current information or consult experts before transacting.

Want to estimate total taxes and fees for a specific transaction, or check if you qualify for tax exemption? Ask [Sirifin's AI advisor](/vi/ai-advisor), or [schedule with a real estate legal and tax expert](/vi/advisors).

Content is for financial information and education purposes, not legal or tax advice for specific cases.