Steps to pay money when buying a house safely and legally

Steps to pay when buying a house

The payment steps when buying a house are often overlooked by many people. However, this is an important step in the process of buying and selling real estate. Just a little carelessness, you easily fall into the situation of “lost money, handicapped”. So specifically, how are these payment steps?

What should be paid attention to before making the payment steps when buying a house?

Buying a home is an important decision for every family. They are very valuable assets. Therefore, even if you are satisfied with a certain piece of land or house, do not rush to pay for a house right away. Instead, check the legality of the property you intend to buy.

This will help you protect your rights. You will avoid unnecessary sales scams or trouble, legal risks after owning the house.

Cần kiểm tra tính pháp lý của ngôi nhà trước khi thanh toán
Need to check the legality of the house before paying

Factors to check before paying include:

  • Planning information, construction limits.
  • Check the information on the ownership papers, red book / pink book match or not.
  • Check whether the real estate is open to disputes, blockade, mortgage of property or not.

Steps to pay when buying a house

How do I pay for a house ? Normally, with a complete and safe real estate buying and selling process, you will have to make a payment through the following steps:

Step 1: Pay the deposit

This is the first payment step. The deposit is the “reservation” amount. The buyer will pay the seller a small amount of money. In return, the seller will commit in a certain period of time to give priority to selling the house to the buyer who has made a deposit.

Payment deposit amount

The deposit is usually paid immediately after the two parties have agreed and signed the deposit contract. This amount is more or less depending on the agreement between the buying and selling parties. For the most part, it will be about 10% of the transaction value.

Số tiền cọc do 2 bên thỏa thuận
The amount of the deposit is agreed upon by both parties

Payment Location

The deposit contract is quite simple, can be handwritten without notarization. At the same time, this deposit payment method is chosen by both parties. can be done anywhere.

However, you must remember, this receipt of payment for this deposit must be signed by a 3rd party as a witness. Because of that, according to the current provisions of the law, it will take effect.

Therefore, it is best to sign and pay the deposit at the notary office. Or at the People’s Committee of the commune or ward where the real estate is located will help you certify and stamp the transaction. Or pay for the house purchase and sale through the bank.

Step 2: Pay to buy a house

In the steps of paying for a house , this is a very important step. The cases of mistakes and traps of the opponent often occur at this stage.

At this time, the stipulated period of the deposit contract has expired. The two sides will enter the stage of signing the official real estate purchase and sale contract. The seller and the buyer will agree on the exact date of going to the Notary Public to sign the sale and purchase contract.

At this stage, the buyer can pay the full amount as stated in the sales contract after deducting the deposit. Or the buyer only pays a part.

However, according to experts’ home payment experience , buyers should only pay 95% of the home’s value during this period. The remaining amount will be paid at the next step after completing the tax liability and transferring the ownership of the land.

Số tiền thanh toán thường là 95% giá trị ngôi nhà
The down payment is usually 95% of the house value

Normally, the signing of real estate purchase and sale contracts and money delivery will be done in the presence of a notary. After that, the sale contract will be notarized to ensure legality.

At the end of this payment, you will receive all relevant real estate documents including:

  • Certificate of land use right, ownership of houses and other assets attached to land (red book/pink book).
  • Notarized sales contract.
  • Notice of registration fee, personal income tax of the seller.
  • Current status drawings and related documents.

Step 3: Pay the remaining amount after tax declaration and real estate registration

After the sales contract is notarized, both parties will have to perform tax declaration obligations. The seller must pay 2% personal income tax on the value of the house. The buyer must pay a registration fee of 0.5% of the total value of the house.

When the tax obligation has been fulfilled, the buyer and the seller will proceed to register the property. Specifically, the two sides will go to the People’s Committee of the district to do this. After checking that the documents are complete, the receiving officer will record an appointment to receive the book. Maximum after 45 working days.

Thanh toán nốt số tiền còn lại
Pay the remaining amount when there is a due date to get the book

Some things to keep in mind when making home payments

Paying when the house is being mortgaged

If you know that real estate is being mortgaged at the bank but still want to buy it, you need to be very careful:

  • There should be a written commitment between 3 parties: the seller, the buyer and the bank related to the payment for the purchase of real estate. As well as the loan repayment process with the seller’s bank.
  • The sale amount must be greater than the amount owed to the bank. Includes both principal and interest.
  • Each bank has a different process for approving and selling mortgaged homes. Therefore, it is best to contact your bank directly first to check. As well as prepare the profile properly.

Payment unit is VND

Đơn vị thanh toán phải là Việt Nam Đồng
The payment unit must be Vietnam Dong

According to current regulations of Vietnamese law, the payment unit must be Vietnam Dong. If the payment unit stated in the real estate sale and purchase contract is a foreign currency, the contract is considered void. Regardless of the foreign currency, the contract is not recognized and protected by law.

However, in the case, if on the contract, the payment unit is a foreign currency. However, in fact, the payment transaction is made in Vietnam Dong. The law will give you time to adjust the contract to the reality. Otherwise, the contract is considered void and has no legal value.


So, above, the article has outlined the steps to pay when buying a house. Those are 3 basic steps in accordance with current regulations of law. However, in practice, depending on the specific case, this process can be shortened. Sometimes, the home payment only happens once. Along with that, of course, the risk incurred will be higher.

Meanwhile, fraud in the real estate sector is becoming more sophisticated and cunning. In fact, many people have been deceived because of their gullibility and fell into a trap designed by the seller. Therefore, you should not be subjective but be very careful and be vigilant.

Please apply the 3 steps above with the notes that has shared to ensure your rights. As well as minimize the risk that may be encountered in this purchase. Hopefully, the above knowledge will help you better understand the process of buying and selling real estate as well as having a favorable transaction.

-Thuy An – Real Estate Information Analyst-

>>> See more: How to pay to buy a house? 3 notes to know


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