Can off-the-plan real estate be put on the market in Vietnam?

 Can off-the-plan real estate be put on the market in Vietnam? (Internet image) 

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

1. Can off-the-plan real estate be put on the market in Vietnam?

According to Article 5 of the Law on real estate trading 2014, types of real estate to be put on the market include:

- Existing buildings of organizations or individuals;

- Off-the-plan buildings of organizations or individuals;

- Buildings which are public properties to be put on the market permitted by competent agencies;

- Types of lands whose land-use rights are permitted to be transferred (hereinafter referred to as land), leased, sublet as prescribed in law on land.

Thus, according to regulations, off-the-plan buildings is allowed to be put on the market, but must meet the prescribed conditions.

2. 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 are specified in Article 55 of the Law on real estate trading 2014 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.

Thus, off-the-plan real estate will be put on the market when it meets the above conditions.

3. Is it possible to transfer off-the-plan building sale or lease purchase agreement in Vietnam?

Article 59 of the Law on real estate trading 2014 stipulates the transfer of off-the-plan building sale or lease purchase agreement as follows:

- The buyer or the lessee may transfer the off-the-plan building sale or lease purchase agreement if the application for the Certificate of land, ownership of land and property on land granted to the buyer or the lessee has been not sent to competent agencies. The transfer of off-the-plan building sale or lease purchase agreement must be made in writing and certified by the investor.

- The agreement transferee may retain rights and obligations of the buyer or the lessee. The investor must enable contracting parties to transfer the agreement and collect no remuneration related to the agreement transfer.

- The last agreement transferee shall be granted the Certificate of rights to use land, ownership of land property on land as prescribed in law on land.

- The agreement transfer prescribed above shall not apply to social house sale or lease purchase agreements.

Nguyen Ngoc Que Anh

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