Obligations of developers in commercial housing property development projects in Vietnam

Obligations of developers in commercial housing property development projects in Vietnam (Image from the Internet)

1. Obligations of developers in commercial housing property development projects in Vietnam

The obligations of developers in commercial housing property development projects in Vietnam according to Article 39 of the Housing Law 2023 are as follows:

- Formulate, approve, and implement the project in accordance with the investment policy approval, the approved project contents, the provisions of the Housing Law 2023, construction law, and other relevant legal regulations.

- Deposit or provide a bank guarantee for the obligation to deposit in order to implement the project as per the investment law; pay housing transaction guarantee fees according to real estate business law; ensure financial capacity to execute the project as per the law.

- Construct housing and technical infrastructure, social infrastructure in the project assigned for construction in accordance with the detailed planning, investment policy content, comply with design, housing area standards and project content as approved.

- In cases eligible for land use rights transfer for individuals to build housing themselves as per the law, the housing construction project investor can only transfer after completing and putting into use the technical infrastructure system as per construction law and real estate business law for the transferable area.

- Report on the project implementation situation, results periodically and upon project completion as per housing law and real estate business law.

- Enter into contracts, documents related to capital mobilization to execute housing construction projects as per the Housing Law 2023, real estate business law, and other relevant legal regulations. Do not authorize or delegate to partners, joint ventures, business cooperations, capital contributions, or other organizations or individuals to sign contracts for renting, lease-purchasing, buying housing, or placing deposits for housing transactions or conduct transactions of land use rights within the project.

- Fulfill commitments in business contracts for project products; ensure construction quality as per construction law; deliver housing along with related documents to the buyer and proceed with sale, lease-purchase, rental of housing, business of land use rights in conformity with the Housing Law 2023, real estate business law, and other relevant legal regulations.

- Within 50 days from the date of handing over the house to the buyer or from the date the lease-purchase party has fully paid as agreed, submit the application requesting the competent state authority to issue the Certificate to the buyer, lease-purchase party unless the buyer, lease-purchase party voluntarily undertakes procedures for Certificate issuance.

- Provide housing warranty according to the Housing Law 2023 and construction laws; fulfill financial obligations to the State as per the law.

- Comply with legally effective decisions of the competent authority regarding the handling of legal violations in housing development, capital mobilization, upfront payment from customers, conducting housing transactions, and other activities as stipulated in the Housing Law 2023.

- Compensate for damages in case of harming customers or organizations/individuals involved in housing construction investment.

- Obligations stipulated in clauses 2 and 3 of Article 83 Housing Law 2023.

- Other obligations as prescribed by law.

2. Rights of developers in commercial housing property development projects in Vietnam

The rights of developers in commercial housing property development projects in Vietnam according to Article 38 of the Housing Law 2023 are as follows:

- Request relevant agencies, organizations to carry out procedures according to legal conformity during investment policy approval, formulation, approval, and implementation of the project.

- Sell, lease-purchase, rent housing; mobilize capital, collect money from sales, lease-purchase, rent of housing as prescribed by the Housing Law 2023, real estate business law, and according to signed contract terms.

- Exercise the rights of land users and trade project products according to the approved investment policy and project content.

- Transfer part or entire project as per the provisions of real estate business law, land law, investment law.

- Manage and exploit the technical and social infrastructure within the project scope that is not required to be handed over to the State following the approved investment policy content and project content.

- Request competent state agencies to issue Certificates for housing built in the project, as stated in Article 9 of the Housing Law 2023 and land law.

- Enjoy state preferential policies during project implementation as per legal regulations.

- Other rights as prescribed by law.

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