Requirements in terms of off-the-plan real estate for tourist apartments

Requirements in terms of off-the-plan real estate for tourist apartments (Internet image)

1. Regulations on conditions for off-the-plan buildings in Vietnam

1.1 Off-the-plan buildings in Vietnam

According to Clause 2, Article 5 of the Law on Real Estate Trading 2014, off-the-plan buildings of organizations or individuals is one of the types of real estate to be put on the market in accordance with the Law on Business. Real estate business in 2014.

Article 54 of the Law on Real Estate Trading 2014 stipulates that a real estate investor is entitled to sell, lease or lease purchase off-the-plan buildings.

The off-the-plan building sale, lease or lease purchase shall be complied with regulations of this Chapter, equivalent regulations of Chapter II and other relevant regulations of the Law on Real Estate Trading 2014.

1.2 Conditions of organizations and individuals conducting real estate trading in Vietnam

Pursuant to Article 10 of the Law on Real Estate Trading 2014 (amended by the Law on Investment 2020), Article 4 of Decree 02/2022/ND-CP, organizations and individuals shall meet the following criteria to conduct real estate trading:

- They must establish an enterprise in accordance with the law on enterprises or a cooperative in accordance with the law on cooperatives, with a line of business in relation to real estate trading (hereinafter referred to as enterprise);

- They must publicize on the enterprise's website, at the head office of the project management board (for projects on real estate trading and investment), at the real estate exchange (for the case of business through the real estate exchange):

+ Information about the enterprise (including name, address of head office, contact phone number, name of the legal representative);

+ Information about real estate to be put on market as prescribed in Clause 2, Article 6 of the Law on Real Estate Trading 2014;

+ Information on mortgage of houses, construction works, real estate projects to be put on market (if any),

+ Information on the number, type of real estate products being traded, quantity and types of real estate products sold, transferred, lease-purchased and the quantity and types of remaining products that are still being traded.

If any information that has been publicly at this point changes later, it must be promptly updated upon the change;

-  Trading of eligible real estate as prescribed in Article 9, Article 55 of the Law on Real Estate Trading 2014.

In case an investor is selected as the investor of a real estate project according to law, such investor must have an equity of not less than 20% of the total investment capital for the project with a land use scale of less than 20 hectares, not less than 15% of the total investment capital, for the project with a land use scale of 20 hectares or more.

In performing real estate trading, the project investor must meet the eligibility criteria above.

* Note: Any organizations, households and individuals who conduct small-scale or irregular transactions of real estate sale, transfer, lease-out, and lease purchase shall not be required to set up enterprises, but they shall make tax declaration as prescribed.

1.3 Requirements in terms of off-the-plan real estate to be put on the market in Vietnam

Requirements in terms of off-the-plan real estate to be put on the market according to the provisions of Article 55 of the Law on Real Estate Trading 2014 are as follows:

- There are documents on land, project documents or construction drawing approved by competent agencies, License for construction if it is required, documents on certification of completion of technical infrastructure in equivalent to project progress;

Or it is required to gain the certification of completion of the foundation of the building regarding off-the-plan apartment buildings or mix-used buildings.

- Before entering an agreement on sale or lease purchase of an off-the-plan building

Within 15 days from the day on which the notification is received, the agency in charge of housing of province shall respond in writing to the investor with the building permitted to be sold or leased purchase;

If the building do not meet the requirements, they must provide explanation.

2. Guidance on conditions for off-the-plan buildings for tourist apartments in Vietnam

In Official Dispatch 5409/BXD-QLN dated November 29, 2022, the Ministry of Construction of Vietnam commented on the conditions for a real estate business to be formed in the future for tourist apartments as follows:

- Pursuant to Clause 2, Article 5, and Article 54 of the Law on Real Estate Business 2014, the investor in a real estate project has the right to sell, rent, or lease-purchase future houses and construction works if the corresponding conditions prescribed by the law on real estate business are met.

Conditions for organizations and individuals trading in real estate are specified in Article 10 of the Law on Real Estate Business 2014 and Article 4 of Decree 02/2022/ND-CP.

Article 55 of the Law on Real Estate Business 2014 specifies the conditions for future real estate formation to be put into business.

The Law on Real Estate Business 2014 does not require investors to submit a dossier before selling, leasing, or buying future construction works that are not houses; they must submit a dossier to request that the Department of Construction send a document to the investor about the houses that are eligible for sale or lease. buying.

Van Trong

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