Procedures for transfer of entire or partial real estate project in Vietnam

Procedures for transfer of entire or partial real estate project in Vietnam (Image from Internet)

1. Procedures for transfer of entire or partial real estate project in Vietnam

The procedures for transfer of entire or partial real estate project in Vietnam under Article 42 of the Law on Real Estate Business 2023 are as follows:

- Procedures for transferring an entire or part of a real estate project under the authority of the Prime Minister's decision to allow transfer are stipulated in clause 2, Article 41 of the Law on Real Estate Business 2023 as follows:

+ The project investor submits an application for permission to transfer the entire or part of the real estate project to the provincial People's Committee where the project is located or the provincial-level state management agency in charge of real estate business as authorized by the provincial People's Committee;

+ Within 45 days from the date of receiving a complete and valid application, the provincial People's Committee is responsible for consulting with the Ministry of Construction and relevant ministries, sectors and agencies, organizing appraisals and submitting to the Prime Minister for consideration and decision to permit the transfer; in cases where the real estate project does not meet the transfer conditions, the receiving authority must issue a document clearly stating the reasons to the project investor;

+ After obtaining the Prime Minister's decision to allow the transfer, the transferor and transferee of the project must sign the transfer contract and hand over the project.

- Procedures for transferring an entire or part of a real estate project under the authority of the provincial People's Committee's decision to allow transfer are stipulated in clause 2, Article 41 of the Law on Real Estate Business 2023 as follows:

+ The investor submits an application for permission to transfer the entire or part of the real estate project to the provincial People's Committee where the project is located or the provincial-level state management agency in charge of real estate business as authorized by the provincial People's Committee;

+ Within 30 days from the date of receiving a complete and valid application, the provincial People's Committee is responsible for consulting with relevant agencies, organizing appraisals, and issuing a decision to permit the transfer; if the project or part of the project does not meet the transfer conditions, the receiving authority must issue a document clearly stating the reasons to the project investor;

+ After obtaining the provincial People's Committee's decision to allow the transfer, the transferor and transferee of the project must sign the transfer contract and hand over the project.

- In cases where the transferee receiving the entire or part of the project as stipulated in clause 2, Article 41 of the Law on Real Estate Business 2023 is an economic organization with foreign invested capital as stipulated in clause 4, Article 10 of the Law on Real Estate Business 2023, after obtaining the permission decision from the competent state authority and the parties have signed the transfer contract, land-related procedures shall be implemented according to land law.

2. Rights and obligations of parties in transfer of entire or partial real estate project in Vietnam

The rights and obligations of parties in transfer of entire or partial real estate project in Vietnam according to Article 43 of the Law on Real Estate Business 2023 are as follows:

- The investor transferring the entire or part of a real estate project has the following rights and obligations:

+ Transfer its rights and obligations related to the entire or part of the project to the transferee to continue investing in construction of real estate for business, excluding rights and obligations that have been fulfilled and are not related to the transferee and the continued project or part of that project;

+ Transfer related documents to the transferee; promptly, fully, and openly notify and satisfactorily resolve the legal rights and interests of parties related to the transferred project or part of the project;

+ Coordinate with the transferee to carry out land-related procedures according to land law for the transferee;

+ In case of transferring part of a real estate project, the transferor has the right to request the transferee to continue investing in housing, construction works in the transferred part of the project following the approved project content, construction permit (for cases requiring a construction permit) and approved detailed planning according to construction law and urban planning law; monitor and report promptly to competent state authorities on violations in land use, construction investment of the transferee;

+ Fulfill financial obligations to the State in accordance with the law;

+ Other rights and obligations as per the contract.

- The transferee of the entire or part of a real estate project has the following rights and obligations:

+ Inherit and perform the rights and obligations transferred by the investor;

+ Continue to implement investment and business activities of the project according to the approved project content; in case of changes, comply with regulations in clause 3, Article 39 of the Law on Real Estate Business 2023;

+ In cases of receiving part of a real estate project transfer, the transferee must comply with the transferor's requirements to ensure adherence to the project planning during construction investment;

+ Fulfill financial obligations to the State in accordance with the law;

+ Other rights and obligations as per the contract.

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