What conditions must future-formed real estate meet when introduced to the market according to regulations?
What Conditions Must Future-forming Real Estate Meet to Be Entered into Business According to Regulations?
Pursuant to Article 55 of the Real Estate Business Law 2014, the provisions are as follows:
Conditions for Future-forming Real Estate to Be Entered into Business
1. There must be documents on land use rights, project dossiers, construction drawing design approved by the competent authority, Construction Permits if required, and documents on the acceptance of the completion of technical infrastructure construction according to the project progress; in the case of future-forming apartments or mixed-use buildings for residential purposes, an acceptance record for the completion of the foundation must be available.
2. Before selling or leasing future-forming houses, the investor must notify the provincial housing management authority that the houses qualify for sale or lease.
Within 15 days from the receipt of the notification, the provincial housing management authority is responsible for providing a written response to the investor regarding whether the houses qualify for sale or lease; if they do not qualify, the reasons must be clarified.
Future-forming real estate entered into business must meet the above regulations.
What Conditions Must Future-forming Real Estate Meet to Be Entered into Business According to Regulations? (Image from the Internet)
How Is Payment Made in the Purchase and Lease-Purchase of Future-forming Real Estate?
Pursuant to Article 57 of the Real Estate Business Law 2014, the payment policy in the purchase and lease-purchase of future-forming real estate is as follows:
Payment in the Purchase and Lease-Purchase of Future-forming Real Estate
1. Payment in the purchase and lease-purchase of future-forming real estate is made in multiple installments, with the first installment not exceeding 30% of the contract value, and subsequent installments must comply with the construction progress but in total not exceeding 70% of the contract value before the handover of the house or construction to the customer; in case the seller or lessor is a foreign-invested enterprise, the total does not exceed 50% of the contract value.
If the buyer or lessee has not yet been granted a Certificate of Land Use Rights, House Ownership, and Other Assets Associated with Land, the seller or lessor may not collect more than 95% of the contract value; the remaining value of the contract will be paid when the competent state authority grants the certificate to the buyer or lessee.
2. The investor must use the advance money from customers for the purposes committed.
Payment in the purchase and lease-purchase of future-forming real estate is as follows:
- Payment in the purchase and lease-purchase of future-forming real estate is made in multiple installments, with the first installment not exceeding 30% of the contract value, and subsequent installments must comply with the construction progress but in total not exceeding 70% of the contract value before the handover of the house or construction to the customer; in case the seller or lessor is a foreign-invested enterprise, the total does not exceed 50% of the contract value.
In case the buyer or lessee has not yet been granted a Certificate of Land Use Rights, House Ownership, and Other Assets Associated with Land, the seller or lessor may not collect more than 95% of the contract value; the remaining value of the contract will be paid when the competent state authority grants the certificate to the buyer or lessee.
- The investor must use the advance money from customers for the purposes committed.
How to Transfer Purchase and Lease-purchase Contracts for Future-forming Houses?
Pursuant to Article 59 of the Real Estate Business Law 2014, the provisions are as follows:
- The buyer or lessee has the right to transfer the purchase and lease-purchase contract of future-forming houses when the application for a Certificate of Land Use Rights, House Ownership, and Other Assets Associated with Land for the buyer or lessee has not been submitted to the competent state authority. The transfer of the purchase or lease-purchase contract of future-forming houses must be documented and confirmed by the investor.
- The transferee of the contract will continue to exercise the rights and obligations of the buyer or lessee with the investor. The investor is responsible for facilitating the contract transfer and must not charge any fees related to the contract transfer.
- The final transferee of the purchase or lease-purchase contract for future-forming houses will be granted the Certificate of Land Use Rights, House Ownership, and Other Assets Associated with Land by the competent state authority as per land law regulations.
- The transfer of contracts stipulated in this Article does not apply to social housing purchase and lease-purchase contracts.
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