Proposal to move 5% of off-plan home value into an escrow account until buyers receive their pink book

The draft amended Law on Real Estate Business, submitted to the Ministry of Justice for appraisal, proposes that the final 5% of the value of future-formed housing (off-plan homes) be transferred into an escrow account at a bank. This money would be released to the developer only after the buyer receives the pink book. Under current law, buyers pay the remaining 5% when the apartment is granted its pink book.

What the draft proposes

• The final 5% of the value of future-formed housing is transferred into an escrow account at a bank, as agreed between the developer and the buyer.
• The money is released to the developer after the customer receives the certificate of land use rights and ownership of assets attached to land (pink book).
• The two parties may choose another way to secure this amount, based on the terms of the sale contract.
• The 2023 Housing Law requires the developer to file the certificate application within 50 days of handover, unless the buyer handles the procedure themselves.

Buyers’ views in a survey

• A VnExpress survey of more than 1,200 readers from 14 to 16 September found that about 80% preferred keeping the current way of paying the final 5% rather than moving it into an escrow account.
• An apartment buyer in Hanoi said his 5% is sitting in a bank waiting for the pink book, and in his view many developers are late with the certificate procedure because they have not fulfilled financial obligations or released bank mortgages.

Points experts want clarified

• Ms Le Thi Huyen Trang, CEO of JLL Vietnam: the rules must state clearly who opens the escrow account, who pays the fees, who receives the interest, how long the bank holds the money, and how disputes are handled.
• Mr Dinh Minh Tuan, Southern Regional Director of Batdongsan: buyers usually receive their pink book about 6 months after the project is completed and the developer finishes the procedures; he suggested not changing the rule to avoid extra procedures.
• Lawyer Pham Thanh Tuan considers the proposal a fairly balanced solution between developers and buyers, since in some cases the developer has completed the dossier but the buyer is slow to submit documents.
• Singapore requires developers to open a separate project account; the money can only be used for taxes, fees and construction costs, and the remainder is withdrawn after the project is completed and certificates are issued.

Compiled from VnExpress, published 18/09/2026.