Can Real Estate Projects That Are Suspended from Construction Be Transferred?
Can real estate projects that are halted from construction be transferred?
Based on Article 9 of Decree 02/2022/ND-CP, the principles for transferring the entire or part of a real estate project are as follows:
- The transfer of the entire or part of a real estate project is performed when the conditions stipulated in Article 49 of the Law on Real Estate Business are met and applies in cases where the project is being implemented according to the approved schedule and content of the project.
2. For real estate projects stipulated below, the transfer shall be in accordance with investment laws:
a) Real estate projects with approved investors as stipulated by the Investment Law of 2020;
b) Real estate projects granted an Investment Registration Certificate according to the Investment Law of 2020.
- For real estate projects not subject to the stipulations in Clause 2 of this Article, the transfer shall be according to the Law on Real Estate Business and this Decree.
Accordingly, real estate projects that have been halted according to the schedule for a period of time will not be transferred according to the principles of the Law on Real Estate Business. In cases where the construction of the real estate is halted but falls under the scope regulated by Clause 2 above, the transfer is still permitted according to the Investment Law.
Does the enterprise need to prepare financial proof documents when receiving a transfer of a real estate project?
According to Clause 2, Article 10 of Decree 02/2022/ND-CP, which stipulates the dossier for transferring the entire or part of a real estate project as follows:
- The dossier of the transferee of the entire or part of a real estate project includes:
a) A proposal application to receive the transfer of the entire or part of the project as per the form stipulated in Form No. 11 Annex issued with this Decree;
b) Business registration certificate or Investment registration certificate or documents proving the establishment of the organization (a copy and presentation of the original for comparison or a notarized or certified copy when submitting the dossier);
c) Documents proving financial capacity; proof of mobilized capital sources (if any) as prescribed by law to ensure the continued implementation of the project according to the schedule approved by the competent authority; for real estate business enterprises receiving the transfer, they must have documents proving financial capacity as stipulated in Clause 2, Article 4 of this Decree.
Accordingly, enterprises receiving the transfer of a real estate project must prepare documents proving financial capacity in the dossier for receiving the transfer as stipulated above.
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