What is Real Estate Project Transfer? What are the Conditions for Real Estate Project Transfer as Stipulated?
What is the Assignment of Real Estate Projects?
Based on Article 3 of the Law on Real Estate Business 2023, the regulations are as follows:
Article 3. Interpretation of Terms
In this Law, the following terms are understood as follows:
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- Lease purchase of housing and construction works is when the lease purchaser makes an advance payment to the lessor of a certain percentage of the value of the housing or construction works to be lease purchased as agreed, but not exceeding 50% of the contract value of the lease purchase of the housing or construction works; the remaining amount is calculated as rent to be paid monthly to the lessor for a certain period, except for cases where the parties have other agreements; after the lease purchase period of the housing or construction works, and after the full remaining amount has been paid, the lease purchaser has ownership rights to the housing or construction works.
7. The assignment of a real estate project is the investor transferring entirely or a part of the real estate project, along with the legal rights, obligations, responsibilities, and interests of the investor and the investor's obligations towards related parties (if any) regarding the assigned project or part of the project to the assignee through a contract.
- A real estate business contract is a written agreement between a real estate business entity meeting the conditions set by this Law and another organization or individual to: buy, sell, lease, lease purchase housing or construction works; transfer, lease, sublease land use rights with technical infrastructure in real estate projects; transfer in whole or in part real estate projects.
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Thus, the assignment of a real estate project is the investor transferring entirely or a part of the real estate project, along with their legal rights, obligations, responsibilities, and interests towards related parties (if any) regarding the assigned project or part of the project to the assignee through a contract.
Assignment of Real Estate Projects - What Are the Conditions for Assigning Real Estate Projects? (Image from the Internet)
What Are the Conditions for Assigning Real Estate Projects?
Based on Clause 1, Article 40 of the Law on Real Estate Business 2023, a real estate project to be assigned must meet the following conditions:
- The project has been approved for investment policy, accepted for investment policy, or approved for investment by competent state agencies; the investor has been selected or recognized if the project requires investor recognition procedures.
- The project has an approved detailed planning according to the provisions of construction law and urban planning law.
- The project, or part of the project assigned, has completed compensation, support, and resettlement. For complete infrastructure construction projects, technical infrastructure works must correspond to the progress, design, and detailed planning approved according to construction law, urban planning law, and the content of the project approved under construction law.
- The land use rights of the project or the assigned part of the project are not subject to any disputes being handled, or have been resolved by competent authorities through legally effective judgments, decisions, or rulings; not subject to seizure for enforcement; not under transaction prohibition by law; not within the period of transaction suspension or temporary suspension as stipulated by law.
- The project is not suspended, terminated, or has no decision to recover land from competent state agencies; if the project or part of the project assigned has been administratively penalized, the investor must comply with the administrative penalty decision of the competent state agency in accordance with the law on administrative violations.
- If the project is mortgaged to secure the performance of obligations as stipulated by law, mortgage release must be executed.
- The project is still within the implementation period.
- For projects assigning part of the project, the construction works or the usage, business purposes of the construction works of the assigned part must be independent of other parts of the project.
What Types of Real Estate and Real Estate Projects Can Be Put into Business?
Based on Article 5 of the Law on Real Estate Business 2023, the types of real estate and real estate projects that can be put into business include:
[1] Existing housing and housing formed in the future.
[2] Existing construction works and construction works formed in the future, including construction works for purposes such as education, healthcare, sports, culture, offices, commerce, services, tourism, accommodation, industry, and mixed-use construction works.
[3] Floor area in construction works as specified in Section [2].
[4] Land use rights with technical infrastructure in real estate projects.
[5] Real estate projects.
