Last week, my team went to work on a new property in District 10. The house looks great: one ground floor and one upper floor, in a good location, and the landlord is friendly.
I thought I'd secured a smooth deal on the land, but when I went to the ward office to get permission for minor repairs, I was shocked to find out that the house only had a ground floor according to the documents; the upper floor was built incorrectly and hadn't been completed. Now I can't make any repairs or renovations at all. I was truly shocked, but luckily I hadn't spent any money on construction yet. Even luckier, the homeowner cooperated and helped me redo the land registry extract, the current status report, and supplement the legal documents.
But what if the landlord isn't cooperative? The whole team invests capital, decorates, plans the grand opening – only to run into legal problems and… pack up and leave.
Common misconceptions when signing a rental agreement.
1. A house that is being used normally is legal → False, many houses are built illegally, have not been completed, or are mortgaged to banks – but may still be occupied.
There are still people renting them out.
You might think it's a normal place to live, but in reality, that house... doesn't meet the requirements for business. Opening a shop in a house with "incomplete paperwork" means you won't be able to obtain a license, register your business, and could even face enforcement action from inspectors at any time.
2. Thinking that someone else has rented it before and it's safe → Extremely dangerous.
Many properties change hands multiple times because previous owners discover problems – and then quietly withdraw.
As a newcomer, you don't ask questions, you don't check, and you just blindly jump in. A painful lesson learned is that just because you saw a previous shop selling banh mi (Vietnamese sandwiches) here, you think you can open a bun dau (Vietnamese noodle soup with tofu) shop too. Ask for the reason why the previous owner moved out. Otherwise, you'll be the next one to leave.
3. Having a lease agreement is legally sufficient → Not enough, a lease agreement is only one part; you need more:
• Original property documents (not just photocopies)
• Verify the true owner
• Area planning information
• Building permit/completion certificate (if additional construction is required)
• Appropriate land use purpose
If you open a restaurant and your house is on agricultural land or privately owned residential land, you can easily be raided at any time.
4. The landlord said verbally that they could provide the documents later → Trusting them is a death sentence.
Many people reassure you, "Don't worry, I'll handle the permits when needed," but then when you need them... they disappear without a trace. You invest hundreds of millions of dong, and when you need a business registration certificate – nothing happens. There's no documentation, no promises, and the contract must clearly state the responsibility to complete the paperwork before construction or opening. Without it, you're out of luck.
5. The house is in an alley, tiny, surely it won't get inspected → Wrong.
Being small doesn't exempt you from legal risks; some properties are subject to pending zoning plans, or are located in areas restricted to food and beverage businesses, and the more you try to hide it, the more attention you'll attract.
You don't need to know all the laws. But you do need to know clearly: whether the location where you plan to open your shop complies with the law.
Documents are not just a few A4 sheets of paper – they are the basis for protecting your money, time, and effort, and preventing you from losing money foolishly. They also save you sleepless nights.
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