What are the requirements in terms of real estate to be put on the market? What are the eligibility criteria for organizations and individuals to conduct real estate trading in Vietnam?
What are the requirements in terms of real estate to be put on the market?
Pursuant to the provisions of Article 9 of the 2014 Law on Real Estate Trading in Vietnam, the requirements in terms of real estate to be put on the market are as follows:
A building to be put on the market shall satisfy the following requirements:
- The ownership of the building on land is registered in the Certificate of land use rights (hereinafter referred to as Certificate of land). Regarding an off-the-plan building in the real estate project, it is only required to have the Certificate of land as prescribed in regulations of law on land.
- There is no dispute about the land and ownership of the building on land.
- The building is not distrained.
Types of land permitted to be put on the market shall satisfy the following requirements:
- There are Certificates of land as prescribed in regulations of law on land.
- There is no dispute about the land.
- The land is not distrained;
- The land use term is still unexpired.
What are the requirements in terms of real estate to be put on the market? What are the eligibility criteria for organizations and individuals to conduct real estate trading in Vietnam? (Image from the Internet)
What are the eligibility criteria for organizations and individuals to conduct real estate trading in Vietnam?
Pursuant to Article 4 of Decree No. 02/2022/ND-CP stipulating the eligibility criteria for organizations and individuals to conduct real estate trading as follows:
- They must establish an enterprise in accordance with the law on enterprises or a cooperative in accordance with the law on cooperatives, with a line of business in relation to real estate trading (hereinafter referred to as enterprise);
- They must publicize on the enterprise's website, at the head office of the project management board (for projects on real estate trading and investment), at the real estate exchange (for the case of business through the real estate exchange) information about the enterprise (including name, address of head office, contact phone number, name of the legal representative), information about real estate to be put on market as prescribed in Clause 2, Article 6 of the 2014 Law on Real Estate Trading in Vietnam, information on mortgage of houses, construction works, real estate projects to be put on market (if any), information on the number, type of real estate products being traded, quantity and types of real estate products sold, transferred, lease-purchased and the quantity and types of remaining products that are still being traded.
If any information that has been publicly at this point changes later, it must be promptly updated upon the change;
- Trading of eligible real estate as prescribed in Article 9, Article 55 of the 2014 Law on Real Estate Trading in Vietnam.
- In case an investor is selected as the investor of a real estate project according to law, such investor must have an equity of not less than 20% of the total investment capital for the project with a land use scale of less than 20 hectares, not less than 15% of the total investment capital, for the project with a land use scale of 20 hectares or more.
In performing real estate trading, the project investor must meet the eligibility criteria specified in Clause 1 Article 4 of Decree No. 02/2022/ND-CP.
The equity specified in this Clause is determined based on the results of the most recent audited financial statements or the results of independent audit reports of the operating enterprise (made in the year or preceding year); in case of a newly established enterprise, the equity shall be determined according to the actual contributed charter capital as prescribed by law.
What are the responsibilities of investors of real estate projects in Vietnam?
Pursuant to the provisions of Article 13 of the 2014 Law on Real Estate Trading in Vietnam, the responsibilities of investors of real estate projects in Vietnam are as follows:
- Invest in construction, trading, management and operation of real estate projects as prescribed.
- Ensure financial resources to run the projects on approved schedule.
- A house or a building is only transferred to clients if that building or other infrastructure is finished on schedule as specified in the approved project and they are connected to general infrastructure in such area; in case a house or an unfinished building is transferred, whole outside of such house or construction must be completed.
- Apply for Certificate of land, ownership of houses and property on land granted to the buyer or the renter and issued by competent agencies within 50 days from the day on which the house or the building is transferred to the buyer or from the deadline of lease purchase, except that the buyer or the renter requests in writing that they shall apply themselves for the Certificate.
- Do not authorize any organization to participate in investment cooperation, joint venture, association, business cooperation or capital contribution to sign the agreement on real estate sale, transfer, or lease purchase.
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