5 Common Real Estate Disputes Foreigners Face When Investing in Nha Trang

>>> Safe investment in Nha Trang: Let a lawyer accompany you from the very beginning

>>> Why do many foreigners choose Nha Trang for real estate investment?

However, reality shows that when disputes arise, foreigners are often in a weaker position—not because they are wrong, but because they:

• Do not fully understand Vietnamese law

• Are unfamiliar with legal procedures

• Do not have appropriate legal representation from the outset

The 5 Most Common Types of Disputes Foreigners Encounter in Nha Trang

Below are the five most common disputes foreigners face when investing in real estate in Nha Trang.

Disputes Due to Non-Recognition of Ownership Rights

This is the most serious type of dispute.

Many foreigners purchase property believing they are the lawful owner, only to later discover that:

• They cannot be named on the ownership certificate

• The property is not eligible for sale to foreigners

• Their rights are not recognized under Vietnamese law

Common causes include:

• Purchasing the wrong type of property

• Buying outside approved projects

• Relying on introductions or assurances without legal verification

When a dispute arises, having paid the money does not necessarily mean you are protected by law.

Contract Disputes Due to Lack of Understanding of Vietnamese Content

Most real estate contracts in Vietnam are drafted in Vietnamese and contain:

• Complex legal terminology

• Legal expressions that differ from international practice

Foreigners often sign contracts based on:

• Verbal explanations

• Unofficial translations

• Trust in brokers or intermediaries

In the event of a dispute, competent authorities rely solely on the Vietnamese version of the contract, not on how it was previously explained.

Disputes with Developers Over Progress and Commitments

Other common disputes involve:

• Project delays

• Handover not matching contractual commitments

• Facilities or amenities differing from advertised representations

Foreigners often face difficulties because they:

• Do not understand complaint or enforcement mechanisms

• Are unaware of their legal rights to make claims

• Are hesitant to work with local authorities

If the contract is not carefully reviewed from the beginning, the ability to protect one’s interests is very limited.

Disputes Arising from Leasing or Operating the Property

Many foreigners purchase property in Nha Trang for rental income or long-term investment.

Disputes may arise when investors:

• Do not understand leasing regulations

• Fail to properly register or declare rental activities

• Encounter unexpected tax obligations

In some cases, investors may also face:

• Administrative penalties

• Orders to suspend operations

• Difficulties transferring income abroad

Disputes Resulting from Nominee Ownership Arrangements

This is a very common but often unspoken risk.

Because they are not eligible to hold title, some foreigners:

• Ask Vietnamese individuals to hold title on their behalf

• Sign private side agreements

• Rely on personal relationships

When relationships change or problems arise, foreigners often have little to no legal basis to reclaim the property.

While blockchain may record transactions, Vietnamese law recognizes only the legally registered owner.

A Common Pattern: Lawyers Are Consulted Too Late

In most dispute cases, lawyers are contacted only after:

• Contracts have already been signed

• Funds have already been transferred

• Rights have already been restricted

At that stage, legal options are fewer, costs are higher, and outcomes are more difficult to control.

Disputes often arise when lawyers become involved too late

Why Do Foreigners Need a Lawyer from the Beginning, Not Only After a Dispute?

A lawyer is not only there to “resolve disputes,” but more importantly to:

• Identify risks before you sign

• Prevent disputes from occurring

• Explain the law in a way you understand

• Represent and protect your legal interests

For foreigners, a lawyer is the critical bridge between you and the Vietnamese legal system.

Disputes Are Not Unexpected - They Are the Result of Lack of Preparation

Most real estate disputes involving foreigners in Nha Trang could be avoided if investors:

• Conduct legal due diligence from the start

• Clearly understand which types of property they are legally allowed to purchase

• Engage an independent lawyer to accompany them

In Vietnam real estate investment, the key question is not:

“Will I face a dispute?”

But rather:

“If a dispute arises, am I adequately protected?”

If you have any questions or need legal advice, please contact us via the following forms:

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Nha Trang Branch office address: 144 Hoang Hoa Tham Street, Nha Trang Ward, Khanh Hoa Province (Formerly Loc Tho Ward, Nha Trang City)

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