Content of agreement on transfer of all or a portion of real estate project in Vietnam

Content of agreement on transfer of all or a portion of real estate project in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Content of agreement on transfer of all or a portion of real estate project in Vietnam

According to Article 53 of the Law on Real Estate Business 2014, content of agreement on transfer of all or a portion of real estate project:

- Names and addresses of contracting parties;

- Basic information about approved project;

- Specific information about all or a portion of transferred project;

- Transfer price;

- Payment method and deadline;

- All or a portion of transfer deadline and enclosed documents;

- Rights and obligations of contracting parties;

- Liability of contracting parties in the completion of administrative procedures relating to the land;

- Liability for breaches of agreement;

- Penalties for breaches of agreement;

- Dispute settlement;

- Cases in which the agreement is terminated and solutions;

- Effective date of the agreement.

2. Rights and obligations of contracting parties in agreement on transfer of all or a portion of real estate project in Vietnam

Rights and obligations of contracting parties in agreement on transfer of all or a portion of real estate project in Vietnam according to Article 52 of the Law on Real Estate Business 2014 are as follows:

- Rights and obligations of the transferor:

+ Transfer their rights and obligations regarding all or a portion of the project to the transferee for real estate trading, excluding rights and obligations which are completely fulfilled not related to the transferee and progress of such project or the portion of project;

+ Transfer the related documents to the transferee; notify clients and entities related to the project or the portion of transferred project promptly, sufficiently, publicly and handle with their lawful rights and benefits.

+ Cooperate with the transferee in completion of procedures for land transfer to the transferor as prescribed in law on land.

+ Regarding transfer of a portion of real estate project, the transferor may request the transferee to keep constructing the building in the transferred project on schedule and specific planning 1/500 or general ground planning; observe and promptly notify competent agencies of violations of the transferee against land use or construction.

+ Fulfill financial obligations to the State as prescribed in regulations of law.

+ Exercise other rights and obligations specified in the agreement.

- Rights and obligations of the transferee:

+ Retain and exercise rights or fulfill obligations transferred from the transferor;

+ Keep conducting the construction and business on schedule and under approved plan;

+ Regarding receiving a portion of real estate project, the transferee must meet requirements of the transferor for conformity to progress and planning of the project;

+ Fulfill financial obligations to the State as prescribed in regulations of law.

+ Exercise other rights and obligations specified in the agreement

3. Requirements in terms of transfer of all or a portion of real estate project in Vietnam

Requirements in terms of transfer of all or a portion of real estate project according to Article 49 of the Law on Real Estate Business 2014 are as follows:

- The transferred real estate project shall meet the following requirements:

+ The project is approved by competent agencies; there is a specific planning 1/500 or general ground planning which is approved;

+ 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;

+ The land in the project is not disputed or distrained by a competent agency

+ 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.

- The transferor has a Certificate of land regarding all or a portion of the transferred project.

- 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.

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