Is it permissible to get a Certificate of land use rights and ownership of houses and other land-attached assets when buying a condotel project in Vietnam?

Is it permissible to get a Certificate of land use rights and ownership of houses and other land-attached assets when buying a condotel project in Vietnam?

Pursuant to Article 49 of the Law on Real Estate Trading in 2014 stipulating requirements in terms of transfer of all or a portion of real estate project as follows:

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.

Pursuant to Section 2 of the Official Dispatch 703/BTNMT-TCQLĐĐ in 2020 stipulating as follows:

2. Regarding the issuance of the Certificate

In case projects with tourist apartments or tourist villas are eligible for transfer according to the provisions of the Law on Real Estate Business, the certification of ownership of the construction works to the transferee implemented in accordance with the provisions of Article 32 of the Government's Decree No. 43/2014/ND-CP dated May 15, 2014 detailing the implementation of a number of Articles of the Land Law, Clause 22, Article 2 of the Decree No. 01/2017/ND-CP dated January 6, 2017 of the Government, amending and supplementing a number of decrees detailing the implementation of the Land Law

The order and procedures for applying for a Certificate are specified in Articles 70 and 79 of Decree No. 43/2014/ND-CP and Article 8, Article 9 of Circular No. 24/2014/TT-CP. BTNMT dated May 19, 2014 of the Minister of Natural Resources and Environment providing for cadastral records; Clause 8 Article 6 of Circular No. 33/2017/TT-BTNMT dated September 29, 2017 of the Minister of Natural Resources and Environment detailing Decree No. 01/2017/ND-CP dated January 6, 2017 of the Government amending and supplementing a number of decrees detailing the implementation of the Land Law and amending and supplementing a number of articles of the circulars guiding the implementation of the Land Law.

The Ministry of Natural Resources and Environment proposes the Departments of Natural Resources and Environment of the provinces and centrally-run cities to organize the review of approved investment projects and the implementation of land allocation and land lease of each project. to determine land use purposes and land use term in accordance with the law on land. If the conditions for issuance of a Certificate are satisfied according to the provisions of the land law and other relevant laws, the grant of certificates to land users and owners of property on land must ensure legitimate rights and interests of land users and owners of assets attached to land and do not change the scale, objectives and planning of the project.

As regulations above, when you buy a condotel apartment from a construction project that meets the transfer conditions from the investor selling it to you, you will still be issued a Certificate of land use rights and ownership of houses and other land-attached assets by the competent authority for this project.

What is the validity period of the Certificate of land use rights and ownership of houses and other land-attached assets when buying a condotel project in Vietnam?

Pursuant to Clause 3 Article 126 of the Law on Land in 2013 stipulating as follows:

3. The term for land allocation or land lease to organizations for the purpose of agriculture, forestry, aquaculture or salt production; to organizations, households or individuals for the purpose of trading and services or for non-agricultural production establishments; to organizations for implementing investment projects; to overseas Vietnamese and foreign-invested enterprises for implementing investment projects in Vietnam, shall be considered and decided on the basis of the investment projects or applications for land allocation or land lease, but must not exceed 50 years.

For large investment projects with slow recovery of capital, projects in areas with difficult socio-economic conditions or with especially difficult socio-economic conditions which require a longer term, the term of land allocation or land lease must not exceed 70 years.

For projects on construction of houses for sale or for a combination of sale and rent or for lease- purchase, the land use term shall be determined in accordance with the duration of the project. Those who buy houses associated with land use rights may use land for a long and stable term.

At the expiry of the term, if the land users still have land use needs, the State shall consider an extension which must not exceed the term prescribed in this Clause.

As regulations above, when you buy a condotel and have been issued a book, this is a project that is allocated or leased land by the state, the term of use is 50 years.

However, for projects with large investment capital with slow capital recovery or areas with difficult or extremely difficult socio-economic conditions that require a longer term, the time limit for land allocation or land lease shall not exceed 70 years.

Which cases shall provincial-level People’s Committees grant the Certificate of land use rights and ownership of houses and other land-attached assets in Vietnam?

Pursuant to Clause 1 Article 105 of the Law on Land in 2013 stipulating as follows:

1. Provincial-level People’s Committees shall grant certificates of land use rights and ownership of houses and other land-attached assets to organizations, religious institutions, overseas Vietnamese, foreign-invested enterprises which implement investment projects, and foreign organizations with diplomatic functions.

Provincial-level People’s Committees may authorize the agency in charge of natural resources and environment of the same level to grant the certificates of land use rights and ownership of houses and other land-attached assets.

Above are cases in which provincial-level People’s Committees grant the Certificate of land use rights and ownership of houses and other land-attached assets in Vietnam.

Best regards!