Is a Land Plot Development Project a Future-Formed Real Estate?

According to the provisions of Clause 2, Article 1 of Decree 11/2012/ND-CP:

"2. Future-formed assets include:

a) Assets formed from loan capital;

b) Assets that are in the process of formation or are being legally established at the time of the conclusion of the security transaction;

c) Assets that have been formed and are subject to ownership registration, but after the time of concluding the security transaction, the assets are registered in accordance with the law.

Future-formed assets do not include land use rights."

According to the provisions of Clause 19, Article 3 of the Housing Law 2014: "Future-formed housing is housing that is in the process of investment construction and has not yet been accepted for use."

Accordingly, the land project must be in the process of construction and has not been accepted for use to be considered a future-formed real estate.

Respectfully!