What are the procedures for transfer of real estate projects in Vietnam? What are the requirements in terms of transfer of all or a portion of real estate projects in Vietnam?
What are the requirements in terms of transfer of all or a portion of real estate projects in Vietnam?
In Article 49 of the 2014 Law on Real Estate Trading in Vietnam, the requirements in terms of transfer of all or a portion of real estate project are as follows:
Requirements in terms of transfer of all or a portion of real estate project
1. The transferred real estate project shall meet the following requirements:
a) The project is approved by competent agencies; there is a specific planning 1/500 or general ground planning which is approved;
b) The compensation or site clearance of the transferred project or a portion of the transferred project has been finished. Regarding transfer of all infrastructure construction projects, the technical infrastructure must be completed equivalent to schedule as specified in the approved project;
c) The land in the project is not disputed or distrained by a competent agency
d) There is no decision on project or land revocation conducted by a competent agency; in case there is any violation during the progress of the project, the investor must abide by the decision on penalty.
2. The transferor has a Certificate of land regarding all or a portion of the transferred project.
3. The transferee must be a real estate enterprise, acquire financial competence and commit to keep conducting the business as prescribed in regulations of law and ensure that the project is conducted under proper progress and plan.
Thus, the transferred real estate project shall meet the following requirements:
- The project is approved by competent agencies; there is a specific planning 1/500 or general ground planning which is approved;
- The compensation or site clearance of the transferred project or a portion of the transferred project has been finished. Regarding transfer of all infrastructure construction projects, the technical infrastructure must be completed equivalent to schedule as specified in the approved project;
- The land in the project is not disputed or distrained by a competent agency
- There is no decision on project or land revocation conducted by a competent agency; in case there is any violation during the progress of the project, the investor must abide by the decision on penalty.
What are the procedures for transfer of real estate projects in Vietnam? What are the requirements in terms of transfer of all or a portion of real estate projects in Vietnam? (Image from the Internet)
Which agency has the power to allow transfer of real estate projects in Vietnam?
In Article 50 of the 2014 Law on Real Estate Trading in Vietnam, as amended by Point b, Clause 2, Article 75 of the 2020 Law on Investment in Vietnam, the power to allow transfer of real estate projects in part or in full is as follows:
The power to allow transfer of real estate projects in part or in full
1. In the case of a real estate project for which the investor has been approved or to which an investment registration certificate has been issued in accordance with the Law on Investment, power and procedures for transfer of real estate projects in part or in full shall comply with the Law on Investment.
2. For a real estate project other than that mentioned in Clause 1 of this Article, the power to allow transfer of real estate projects in part or in full is as follows:
a) People's Committees of provinces and central-affiliated cities (hereinafter referred to as “provincial People's Committees”) shall decide to allow transfer part or whole of real estate projects subject to investment decision by provincial People's Committees;
b) The Prime Minister shall decide to allow transfer of real estate projects in part or in full, for projects subject to investment decision by the Prime Minister.
Thus, there are 03 entities that have the power to allow transfer of real estate projects in part or in full, which are the investment registration certificate-issuing agency, People's Committees of provinces and the Prime Minister.
What are the procedures for transfer of real estate projects?
In Article 51 of the 2014 Law on Real Estate Trading in Vietnam as supplemented by point c, clause 2, Article 75 of the 2020 Law on Investment in Vietnam, the procedures for transfer of all or a portion of real estate project are as follows:
- The investor shall apply for transfer of all or a portion of the project to The People’s Committee of the province where the project or the body which is authorized by The People’s Committee of the province is located.
- Within 30 days from the day on which the satisfactory application is received, The People’s Committee of the province shall make a decision on permission for the transfer, if the application is rejected, the investor shall be informed in writing.
Regarding the project approved by the Prime Minister, the People’s Committee of the province shall confer with the Ministries in charge and the Ministry of Construction then send a report to the Prime Minister for consideration within 45 days from the day on which the satisfactory application is received.
- Within 30 days from the day on which the decision on permission for project transfer is made by competent agencies, contracting parties must finish the transfer agreement conclusion and project transfer.
If the transferee who receive the real estate project is a foreign-invested enterprise, the transferor shall return the land to the State after the decision on permission for project transfer made by competent agencies; then the competent agencies shall allocate or lease out the land to the transferee within 30 days from the day on which the satisfactory application is received.
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