Newest guidance on purchase of commercial housing properties for relocation in Vietnam ​

Newest guidance on purchase of commercial housing properties for relocation in Vietnam ​ (Image from Internet)

On July 24, 2024, the Government of Vietnam issued Decree 95/2024/ND-CP detailing a number of articles of the Housing Law 2023.

Newest guidance on purchase of commercial housing properties for relocation in Vietnam ​

Article 37 of Decree 95/2024/ND-CP guides the purchase of commercial housing for relocation in Vietnam as follows:

* The purchase of commercial housing for relocation shall be carried out in areas where resettlement housing projects are not planned to be developed according to Clause 2, Article 49 of the Housing Law 2023 and shall apply in cases where the housing formed in the future meets the conditions for sale as prescribed by the real estate business law or the purchase of available housing.

* The procedure for purchase of commercial housing properties for relocation in Vietnam is as follows:

- The unit assigned by the provincial People's Committee to arrange resettlement housing is responsible for identifying the commercial housing investment project in the area to purchase commercial housing as resettlement housing and preparing a purchase plan in accordance with Point a, Clause 2, Article 36 of Decree 95/2024/ND-CP to report to the provincial housing management authority for evaluation;

- Within a maximum of 30 days from the date of receiving the proposal from the unit assigned to arrange resettlement accompanied by the housing purchase plan, the provincial housing management authority is responsible for presiding over and cooperating with the provincial finance and natural resources and environment authorities to evaluate and submit the purchase plan to the provincial People's Committee for approval;

- Within a maximum of 15 days from the date the provincial People's Committee approves the housing purchase plan, the unit assigned to arrange resettlement housing must sign a purchase contract with the commercial housing project developer; in case of purchasing future-formed housing, the housing must meet the conditions for sale according to the real estate business law. The signing of housing purchase contracts with the commercial housing project developer shall be carried out in accordance with the real estate business law;

- When the conditions for housing handover according to the housing law are met, the unit assigned to arrange resettlement housing must receive the handover from the developer for management;

- After receiving the handover of housing, based on the progress and time required to arrange housing for the resettled people according to the approved compensation plan, the unit assigned to arrange resettlement housing must notify individuals and households eligible for resettlement to sign purchase, rent, or rent-purchase contracts with the unit assigned to arrange resettlement according to the form prescribed by the Ministry of Construction.

Based on the signed contracts as per Point dd, Clause 2, Article 37 of Decree 95/2024/ND-CP, the unit assigned to arrange resettlement housing will hand over housing to the purchasers, tenants, or rent-purchasers. In case the resettled people fail to receive the housing handover on time, they must provide a written explanation to the unit assigned to arrange resettlement for consideration and resolution.

* The purchase price of commercial housing for resettlement is determined based on market prices at the time of purchase and includes construction investment costs, land levies, condominium maintenance costs if purchasing condominiums, and other reasonable costs as prescribed. In case of disagreement on the purchase price between the presiding and cooperating agencies, a price appraisal enterprise can be hired to advise on determining the asset value as one of the bases for deciding the commercial housing purchase price as prescribed in Clause 2, Article 37 of Decree 95/2024/ND-CP; the cost of hiring the price appraisal enterprise is included in the commercial housing purchase cost.

The selling price, rent-purchase price for the resettled people is equal to the price paid to the developer. If the resettlement compensation is lower than the purchase, rent-purchase price, the resettled people must pay the difference to the unit assigned to arrange resettlement. The rent price for resettled people is implemented according to the approved compensation plan.

More details can be found in Decree 95/2024/ND-CP which comes into force in Vietnam from August 1, 2024.

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