Vietnam: What are the requirements to be satisfied by transferor of rights to use land that already has infrastructure within a real estate project to individuals for building housing?
- What are the requirements to be satisfied by transferor of rights to use land that already has infrastructure within a real estate project to individuals for building housing in Vietnam?
- What are the regulations on transactions involving rights to use land that already has infrastructure within real estate projects in Vietnam under the Law on Real Estate 2023?
- What are the State policies for real estate business in Vietnam?
What are the requirements to be satisfied by transferor of rights to use land that already has infrastructure within a real estate project to individuals for building housing in Vietnam?
Pursuant to the provisions of Article 32 of the Law on Real Estate 2023, the requirements to be satisfied by transferor of rights to use land that already has infrastructure within a real estate project to individuals for building housing:
- The transferor must be the investor of the real estate project.
- The requirements in clauses 1, 2 Article 9 and the condition in clause 2 Article 31 of the Law on Real Estate 2023 are met.
- Land-related financial obligations, including land levy, land rent and other relevant taxes, fees and charges (if any), towards the State in accordance with regulations of law in respect of the land area that already has infrastructure within the real estate project to be put on the market have been fulfilled.
- Any decisions on imposition of penalties for administrative violations against regulations on investment, construction, land, housing, real estate business or taxes in respect of the land lot which rights to use are to be put on the market have served or implemented before entering into contracts for transfer of rights to use land that already has infrastructure within a real estate project.
What are the requirements to be satisfied by transferor of rights to use land that already has infrastructure within a real estate project to individuals for building housing in Vietnam? (Image from the Internet)
What are the regulations on transactions involving rights to use land that already has infrastructure within real estate projects in Vietnam under the Law on Real Estate 2023?
Pursuant to the provisions of Clause 2, Article 28 of the Law on Real Estate 2023, the transactions involving rights to use land that already has infrastructure within real estate projects shall be conducted in accordance with the following provisions:
- Rights to use land that already has infrastructure within real estate projects to be transacted must meet the conditions set out in Articles 31 and 35 of the Law on Real Estate 2023;
- Organizations or individuals engaging in real estate business shall conduct transactions involving transfer, lease or sublease of LURs by means of contracts as prescribed in Chapter VI of the Law on Real Estate 2023;
- Parties to a transaction shall prepare adequate and lawful information and documents proving that have full capacity of legal acts to conduct the transaction as well as conclude the contract in accordance with regulations of the Civil Code; and meet eligibility requirements to engage in real estate business laid down in the Law on Real Estate 2023;
- Before entering into a contract, the transferor, lessor or sublessor of the LURs must provide adequate information and documents prescribed in clause 5 Article 6 of the Law on Real Estate 2023 for the client;
- After entering into a contract, contractual parties are responsible to strictly comply with terms and conditions of the signed contract as well as fully pay taxes, fees and charges (if any) to the State in accordance with regulations of law;
- The transferor of rights to use land that already has infrastructure within real estate projects shall follow procedures with a competent authority for issuance of a certificate of LURs and ownership of property on land, in accordance with regulations of the Land Law, to the transferee, unless the transferee themselves follow such procedures as agreed upon by the parties in the signed transfer contract;
- The competent authority shall consider issuing such certificate of LURs and ownership of property on land to the transferee in accordance with the Land Law.
What are the State policies for real estate business in Vietnam?
Pursuant to the provisions of Article 7 of the Law on Real Estate 2023, the State policies for real estate business are as follows:
- The State encourages organizations and individuals of all economic sectors to invest and engage in real estate business in conformity with the national and local socio-economic development objectives set out in each period.
- The State encourages and provides organizations and individuals with incentive policies for investment in social housing and real estate projects given investment incentives.
- The State shall invest in, and encourage organizations and individuals to make investment in, technical infrastructures outside the project perimeter; assist in construction of technical infrastructures within the perimeters of real estate projects given investment incentives.
- The State shall invest in, and encourage organizations and individuals to make investment in, urban public utility works and social infrastructure works within the scope of real estate projects.
- The State shall adopt policies for regulating the real estate market with an aim to ensuring its healthy, safe and sustainable growth.
- The State shall adopt policies for facilitating non-cash payment for real estate transactions.
- The State encourages the conduct of sale and purchase, transfer, lease, sublease and lease purchase of housing, buildings and LURs through the real estate trading floor.
Law on Real Estate 2023 comes into force from January 1, 2025.
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