Van Ngoc planned to formalize the purchase with a sales contract, transferring ownership to herself after the nominee completed the purchase. However, despite the nominee being an acquaintance, she remained concerned about the risk of them reneging and claiming the property.

She sought advice on avoiding such risks and disputes, asking, "Is there any way to prove the property is mine, with them merely acting as a nominee?"

Luxury apartment in West Hanoi, November 2024. Photo: Giang Huy

According to lawyer Vu Tien Vinh from Bao An Law Firm in Hanoi, using nominees for property purchases, for various reasons, still occurs. This often leads to disputes between the actual owner and the nominee.

While no method guarantees absolute safety, certain steps can mitigate risks and prepare for potential issues. These measures help the actual owner maintain some control and provide avenues for resolution.

Here are some recommendations to minimize risks:

First, only use a nominee as a last resort. Often, alternative solutions exist that allow the buyer to register the property themselves. Consulting with legal and real estate experts can help explore these options.

Second, choose a trustworthy nominee. Assess their character, ethics, and lifestyle, as well as those of their immediate family, like their spouse and children.

Third, have an open and honest discussion with the nominee, addressing all concerns upfront. Anticipating potential future problems and preparing solutions is crucial for both parties.

Fourth, formalize the agreement with a contract, witnessed by two unrelated individuals with no vested interest in the deal. Include their Citizen Identity Card numbers, addresses, and phone numbers for verification. Consider notarizing the agreement and documenting the signing process through photos, audio, and video recordings (done openly).

If the nominee is married, their spouse must also participate in the agreement.

Fifth, transfer the payment directly from the actual buyer's account to the seller's, specifying the purpose of the transaction (e.g., "Mr. A pays for the house/land at [address] to Mr. B"). If transferring funds to the nominee is unavoidable, clearly state the purpose (e.g., "Mr. A transfers funds to Mr. B for purchasing and registering the house/land at [address]"). Vague transaction descriptions can complicate dispute resolution. Securely store all transfer receipts and bank statements.

Sixth, upon receiving the property ownership certificate ("so do"), establish a clear handover process with a signed receipt or record. If the nominee uses the property, a formal rental or lodging agreement is essential.

Seventh, when you're able to register the property in your own name, request the nominee to facilitate the transfer process, covering all associated costs and receiving reasonable compensation.

Hai Thu