Is a Pink Book Required for Home Ownership?

It’s important to understand that the term “sổ hồng” refers to the “Certificate of Land Use Rights and Home Ownership and Other Assets Attached to the Land.” The name “sổ hồng” is derived from the color of the paper, and while it is not a legally recognized term, it is commonly used. However, for the purposes of this article, we will use the term “sổ hồng” as it is more commonly understood by the general public.

The “sổ hồng” is issued by authorized state agencies and contains detailed information about the owner, land ownership, housing, and other assets attached to the land. It serves as a legal document confirming the legitimate ownership of the property and is considered a valid legal basis for real estate transactions.

One of the most crucial roles of the “sổ hồng” is that it serves as the most important legal evidence to prove an individual’s or organization’s homeownership. It is indispensable during real estate buying and selling processes, and mortgage loan applications at banks often require it.

Additionally, the “sổ hồng” safeguards the owner’s legal rights in the event of ownership disputes. For government projects and planning, it provides the legal basis for compensation and clearance calculations.

Owning a “sổ hồng” for a house is not always mandatory. Specifically, according to Clause 2, Article 160 of the 2023 Law on Housing, the following housing transactions do not require a Certificate of Ownership (commonly known as the “sổ đỏ,” “sổ hồng”):

– Buying and selling, leasing, and mortgaging future-built houses; selling houses in case of liquidation or bankruptcy;

– Donating houses for the poor, social housing, and houses for the armed forces;

– Buying and selling, leasing houses that are ready for occupancy from the investor of the project for constructing houses in the following cases: houses belonging to public property; social houses, houses for the armed forces, and resettlement houses that are not public property;

– Renting, lending, or allowing someone to live in a house without payment, or authorizing someone to manage the house;

– Inheriting a house.

As evident, while having a “sổ hồng” is not always mandatory, there are numerous instances where it becomes a necessary requirement.

Specifically, during a buying and selling transaction, if you intend to purchase a house or land, having a “sổ hồng” formalizes the transaction and safeguards your interests. The absence of a “sổ hồng” could lead to significant legal risks.

When it comes to construction and renovation, you typically need to present the “sổ hồng” to obtain a construction permit from the relevant authorities.

Furthermore, to exercise inheritance rights over real estate, the “sổ hồng” is essential to prove legal ownership. For mortgage loans from banks, it is a mandatory requirement.

Although not all cases necessitate a “sổ hồng,” possessing one for your house offers numerous benefits and minimizes risks in transactions and legal disputes. Not having a “sổ hồng” can lead to unwanted complications and difficulties in exercising ownership rights. Therefore, understanding the regulations and ensuring your real estate has a “sổ hồng” is crucial to protecting your legal rights.