12-Point Checklist Before Placing a Deposit on an Apartment: Don't Let Your Deposit Vanish
A deposit of a few hundred million VND placed in haste — on an unlicensed project, with a one-sided deposit slip — is the most common way apartment buyers lose money before they even own anything. Run through these 12 checks before you sign and pay. Work through them in order: the first seven verify the project itself (if the project fails, nothing else matters), the last five verify the paperwork you are about to sign. Print the checklist and tick each item with the supporting document attached — a checklist you complete from memory is barely better than no checklist at all. If you are buying with a spouse or co-buyer, go through the checklist together: both buyers should understand every risk before either of you signs, because both will live with the consequences. Finally, resist the fear-of-missing-out pitch — developers manufacture urgency (“price rises tomorrow”, “only two units left”) precisely because rushed buyers skip checklists. Genuine scarcity does not need pressure tactics. And never sign a deposit agreement you have not fully read: ask for a copy to take home, read it overnight, and sign the next day. Any developer who refuses that request is telling you everything you need to know. Bring a trusted person with you when you sign — a second pair of eyes catches what excitement misses.
Table of contents
The 12-point checklist
1. The developer's legal standing
Check the developer's enterprise registration, legal representative, charter capital actually contributed, and track record of delivered projects — visit a completed project and talk to residents if you can. A developer with no completed project, thin capital, or a history of delayed handovers is a red flag.
2. The project's investment approval
The project must have investment policy approval / investment registration as prescribed, with the approved scale, land area and implementation schedule. Ask to see the approval decision itself — not just the marketing brochure — and check the project name and location match what you are being sold.
3. Land use rights of the project
Verify the project's land: allocation/lease decisions, land use right certificate, the land use purpose and term, and confirmation that land-related financial obligations have been fulfilled. A project on disputed land, unallocated land, or land whose purpose has not been converted for residential use cannot lawfully sell units.
4. Construction permit
Check the construction permit for the apartment building: the permitted number of floors, units and total floor area. Building without a permit — or beyond the permit (extra floors, converted common areas) — means future buyers may never get their pink books, and the illegal parts risk demolition orders.
5. Eligibility for off-plan sale
For off-plan apartments, the law sets conditions before a developer may sell: foundation completion (for condominiums), the bank guarantee for the sale, settlement of land financial obligations, and the required notices to buyers. Verify each one — selling before the conditions are met is unlawful and puts your money at direct risk.
6. Bank guarantee
Before selling off-plan housing, the developer must have a commercial bank's approval to issue guarantees covering the developer's financial obligations to buyers (Article 26, Real Estate Business Law 2023): if the developer fails to hand over on schedule, the guaranteeing bank refunds buyers. But the guarantee itself is the buyer's choice, not an automatic requirement — Article 26(3) lets each buyer choose whether or not to have a guarantee, with any refusal recorded in writing at the time the sale contract is signed. In other words: the developer must have the capacity to arrange a guarantee, but you decide whether to use it. Ask for the guarantee agreement or commitment letter, check its validity period and coverage, and verify it directly with the issuing bank — a photocopy in the sales office is not verification. If you decide to buy without a guarantee, make sure your written refusal is recorded in the contract and that you understand what protection you are giving up.
7. No mortgage or encumbrance on the unit
Check that the specific unit (and the project land) is not mortgaged to a bank, distrained for judgment enforcement, or subject to a transaction-suspension decision. A mortgaged unit can still be sold in some cases with the mortgagee's written consent — but you must see that consent in writing, and understand exactly what happens to the mortgage on handover.
8. The deposit agreement terms
Read every clause: deposit amount, deadline for signing the formal sale contract, each side's rights on breach, force-majeure handling, and how disputes are resolved. Under Article 328 of the Civil Code 2015, if the depositor refuses to proceed the deposit is forfeited; if the recipient refuses, double is returned — unless the agreement says otherwise. Watch for one-sided clauses that let the developer keep your money in every scenario.
9. Payment schedule and method
Pay by bank transfer to the developer's company account — never in cash to a sales agent's personal account, and never to an account whose holder name does not match the developer. Each payment needs a formal receipt/voucher from the developer stating the purpose (deposit for unit [number], project [name]).
10. Promised handover standards
The deposit slip or accompanying documents should reference the handover standards: flooring, sanitary ware, kitchen fittings, air-conditioning, balcony railings — with brands and models where possible. Vague promises ("high-end fittings") become disputes at handover; insist the standards be annexed in writing.
11. Maintenance fund and management
Ask about the 2% maintenance fund: who holds it (it must be transferred to the building management board once established), the monthly management fee per square metre, and the building management plan. Skipping this question invites fee disputes after moving in — and fees only ever go up.
12. The pink book timeline
Ask for the developer's written commitment on when unit ownership certificates (pink books) will be issued — counted from the handover date — and the penalty per month of delay. Check whether the developer's past projects actually delivered pink books on time. A developer that dodges this question is telling you something.
After the checklist: signing the deposit agreement
If all 12 check out:
- Sign a written deposit agreement with full terms — not a one-page receipt. It should identify the exact unit (tower, floor, unit number, area), the price and payment schedule for the formal contract, the deadline for signing it, and the consequences for each side's breach.
- Keep the amount reasonable; never disguise a full payment as a "deposit." A deposit far exceeding normal practice may be recharacterized by a court, creating uncertainty for both sides.
- Set a clear deadline for signing the formal sale contract — open-ended deposits drift into disputes about who delayed.
- Confirm who signs for the developer: the legal representative or a person with a valid written authorization — a sales manager's signature without authority binds no one.
- Keep every payment voucher, the signed agreement, and all correspondence (including chat messages with the sales team) in one file.
If any check fails: pause. A good apartment will still be there after verification; a deposit paid to a bad project rarely comes back. Common pause-worthy signals: the developer rushes you to "sign today for the special price," refuses to show the bank guarantee, or offers a discount for paying the full price as a "deposit." Each of these is the market telling you to slow down.
When in doubt, have a lawyer review the papers before you sign — a review fee is tiny next to a lost deposit. FLAT Law Firm: hotline 0988424851.
FAQ
Q: Is a deposit agreement for an apartment legally binding?
A: Yes. A deposit agreement (Article 328, Civil Code 2015) is binding: if the depositor refuses to proceed, the deposit is forfeited; if the recipient refuses, the recipient must return double (unless otherwise agreed). Read every clause before signing.
Q: How much deposit should I place on an apartment?
A: The law sets no fixed amount — it is as agreed. In practice, deposits for apartments typically range from tens to a few hundred million VND. Never place an amount you cannot afford to lose, and never pay the full price as a "deposit."
Q: Can I buy an off-plan apartment before the developer has a bank guarantee?
A: The developer must have the bank's approval to issue guarantees before selling off-plan housing (Article 26, Real Estate Business Law 2023) — if it cannot show that approval, pause and ask it to prove it. But note the guarantee itself is your choice: Article 26(3) lets you accept or decline it in writing when you sign the sale contract. Verify the guarantee — or your informed written refusal, if that is what you decide — before you pay anything.
Q: What should I do if the developer refuses to return the deposit?
A: First, send a written demand citing the deposit agreement. If that fails, you may sue in court to reclaim the deposit (and the double amount where the developer is at fault). Keep all payment evidence.
References
- Civil Code 2015 (No. 91/2015/QH13).
- Real Estate Business Law 2023 (No. 29/2023/QH15).
- Housing Law 2023 (No. 27/2023/QH15).
