Conditions attached to off-plan housing and building to be put on market​ from August 1, 2024

Conditions attached to off-plan housing and building to be put on market​ from August 1, 2024 (Image from Internet)

Conditions attached to off-plan housing to be put on market in Vietnam from August 1, 2024

Based on the provisions of Article 24 Real Estate Business Law 2023 regarding the conditions attached to off-plan housing and building to be put on market in Vietnam:

- Houses and construction works have been commenced in accordance with the law on construction.

- Have one of the following documents regarding land use rights:

+ Land allocation decision;

+ Land lease decision and land lease agreement according to the law on land management;

+ Decision permitting the change of land use purpose;

+ Land use right certificate;

+ Certificate of house ownership and homestead land use right;

+ Certificate of land use rights, house ownership, and other assets attached to the land;

+ Other certificates of land use rights and ownership of assets attached to the land according to the law on land management.

- Have the following documents:

+ Construction permit and the application for a construction permit in cases where a construction permit is required according to the law on construction;

+ Notification of construction commencement and construction design dossier in cases where a construction permit is not required according to the law on construction;

+ Acceptance document of infrastructure completion according to the corresponding project progress law; in the case of apartment buildings and mixed-use buildings with houses, there must be a document proving the completion of the foundation construction according to the law on construction.

- Before selling or leasing future-formed housing, the project investor must notify the provincial real estate business management agency that the housing is eligible for sale or lease-purchase.

Within 15 days from the date of receiving the notice, the provincial real estate business management agency is responsible for checking the conditions of the houses put into business and replying in writing to the investor about the housing eligibility for sale or lease-purchase; in cases where conditions are not met, reasons must be clearly stated.

The Government of Vietnam specifies the details of Clause 4, Article 24 Real Estate Business Law 2023.

- Houses and construction works must be within real estate projects approved by competent state agencies according to the law and the project content must include the purpose of investment in housing or construction work for sale or lease purchase.

- Meet the conditions specified in Points b, c, d, dd, Clause 1, Points a, and c, Clause 2, Article 14 of the Real Estate Business Law 2023.

- Have been publicly disclosed according to regulations on real estate and real estate projects put into business as stipulated in Article 6 of the Real Estate Business Law 2023.

- The floor area in the construction works formed in the future put into business, in addition to meeting the conditions specified in Clauses 1, 2, 3, 4, 5, 6, and 7, Article 24, also needs to ensure the conditions stipulated in Clause 3, Article 14 of the Real Estate Business Law 2023.

Regulations on payment in purchase and lease-purchase of off-plan housing and building in Vietnam

- Payment in the purchase of houses and construction works, the area of floor construction formed in the future is made in several installments; the first payment must not exceed 30% of the contract value, including deposits; subsequent payments must be in line with construction progress but the total should not exceed 70% of the contract value before handing over houses and construction works, the area of floor construction. In case the seller is an economic organization with foreign investment capital as provided in Clause 4, Article 10 of the Real Estate Business Law 2023, the total should not exceed 50% of the contract value.

- Payment in lease-purchase of houses and construction works, the area of floor construction formed in the future is made in several installments; the first payment must not exceed 30% of the contract value, including deposits; subsequent payments must be in line with construction progress until handing over houses and construction works, the area of floor construction to the lessee but the total upfront payment to the lessor must not exceed 50% of the lease-purchase contract value. The remaining amount is calculated as rent and paid within a certain period according to the lease-purchase contract.

- In cases where the buyer or lessee has not been granted a land use right certificate and ownership rights of assets attached to the land according to the law on land management, the seller or lessor is not allowed to collect more than 95% of the contract value; the remaining contract value is paid when the competent state agency has granted the land use right certificate and ownership rights of assets attached to the land for the buyer or lessee according to the law on land management.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE