Ministry of Construction has introduced a draft amendment to the Real Estate Business Law that creates a mandatory guarantee account for the final 5% of a residential contract. Under the proposal, buyers may pay the first instalment of up to 30% of the contract price, with subsequent instalments tied to construction milestones. The developer cannot collect more than 70% of the contract value before handover, and if the land‑use right certificate (sổ hồng) is not issued, total receipts may not exceed 95% of the contract.
The remaining 5% must be deposited in an account opened with a licensed bank or a foreign bank branch operating in Vietnam. The funds are released to the developer only after the buyer obtains the official title deed. If the delay in issuing the deed is attributable to the developer, the buyer can retrieve the amount from the guarantee account.
Experts highlight that many buyers receive possession of the unit but wait months for the title, hindering mortgage or resale options. Pham Thi Miên of VARS IRE notes that some developers postpone filing for certificates, harming buyers' legal rights. The Vietnam Real Estate Association (VNREA) adds that buyers sometimes handle the paperwork themselves, making the final 5% difficult for developers to collect.
Stakeholders express mixed views. Investor Hùng sees the guarantee as a safeguard for developers but warns of buyer risk if a developer disappears. Lawyer Đặng Văn Cường stresses that developers’ obligations extend beyond construction to full legal transfer of ownership. Real‑estate firms in Ho Chi Minh City support the measure, arguing it balances interests and reduces disputes over the outstanding payment.