Forms of business in rights to use land that already has infrastructure within real estate projects in Vietnam from August 01, 2024

Forms of business in rights to use land that already has infrastructure within real estate projects from August 1, 2024 (Image from the Internet)

On November 28, 2024, the National Assembly of Vietnam passed the Law on Real Estate Business 2023.

Forms of business in rights to use land that already has infrastructure within real estate projects in Vietnam from August 1, 2024

According to Article 28 of the Law on Real Estate Business 2023, the forms of trading land use rights with technical infrastructure in real estate projects in Vietnam are as follows:

* The investor carries out the business of land use rights with technical infrastructure in real estate projects in the following forms:

- Transfer of land use rights with technical infrastructure in real estate projects to individuals to build their own houses is the form of plot selling for individuals to build their own houses;

- Transfer of land use rights with technical infrastructure in real estate projects to organizations for housing and construction investment;

- Lease, sub-lease of land use rights with technical infrastructure in real estate projects to organizations and individuals to use in accordance with the land use purpose and the contents of the investment project approved by a competent state agency.

* The transactions of trading land use rights with technical infrastructure in real estate projects are carried out as follows:

- Land use rights with technical infrastructure in real estate projects brought into business must meet the conditions specified in Article 31 and Article 35 of the Law on Real Estate Business 2023;

- Organizations and individuals doing real estate business establish transactions for transfer, lease, and sub-lease of land use rights through contracts as prescribed in Chapter VI of the Law on Real Estate Business 2023;

- The parties involved in the transaction are responsible for preparing sufficient information and valid documents to ensure they have the legal capacity to establish transactions and sign contracts in accordance with civil law; meet the conditions for organizations and individuals doing real estate business as prescribed by Law on Real Estate Business;

- Before signing the contract, the transferor, lessor, sub-lessor of land use rights shall provide full information and documents as prescribed in Clause 5, Article 6 of the Law on Real Estate Business 2023 to the customer;

- After signing the contract, the parties involved in the contract signing are responsible for strictly implementing the contents of the signed contract and fully fulfilling tax, fee, and charge obligations (if any) to the State as prescribed by law;

- The transferor of land use rights with technical infrastructure in real estate projects is responsible for completing the procedures for a competent state agency to issue certificates of land use rights and ownership of assets attached to land for the transferee as prescribed by land law, unless otherwise agreed in the transfer contract for the transferee to voluntarily complete the procedures for certificate issuance;

- The competent state agency is responsible for issuing certificates of land use rights and ownership of assets attached to land as prescribed by land law to the transferee.

Refer to the Law on Real Estate Business 2023, which comes into force in Vietnam from August 1, 2024.

The Law on Real Estate Business 2014, as amended by the Investment Law 2020, will cease to be effective from the date the Law on Real Estate Business 2023 takes effect in Vietnam, except as stipulated in Clauses 2, 3, 5, 6, 7, 9, 12, and 13 of Article 83 of the Law on Real Estate Business 2023.

To Quoc Trinh

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