Regulations on use of land for construction of condominiums in Vietnam

Regulations on use of land for construction of condominiums in Vietnam (Internet image)

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

1. Regulations on use of land for construction of condominiums in Vietnam

Regulations on use of land for construction of condominiums in Vietnam under Article 49 of Decree 43/2014/ND-CP are as follows:

- Land for construction of condominiums or condominiums for combined residence and use as offices or trade and service establishments (below referred to as condominiums) includes land for construction of condominiums, land for use as yards and for planting flowers and trees around condominiums, and land for construction of infrastructure facilities.

- Investors of condominium construction projects shall be allocated or leased land and granted certificates of land use rights and ownership of houses and other land-attached assets for the land area under these projects according to the following provisions:

= For the area of land for construction of condominiums and land for construction of infrastructure facilities used by investors for commercial purposes under the projects and approved detailed master plans: 

The investors shall be allocated or leased such land by the State and shall pay land use levy or land rental; they shall also be granted certificates of land use rights and ownership of houses and other land-attached assets;

= For the area of land used for roads and other infrastructure facilities serving people living in and outside the condominiums which is not used by investors for the provision of services under the investment projects, the investors shall be allocated or leased such land by the State for management and construction of facilities and do not have to pay land use levy or land rental;

They shall not be granted certificates of land use rights and ownership of houses and other land-attached assets; the investors shall hand over such land to localities for management after completing the construction under the investment projects, detailed construction master plans and land allocation or lease decisions of competent agencies.

- Land use rights and the grant of certificates of land use rights and ownership of houses and other land-attached assets under projects on construction of condominiums for sale or for combined sale and lease must comply with the following provisions:

= Investors shall hand over the land area under common use rights of owners of apartments, offices and trade and service establishments in the condominiums (below referred to as apartments), covering the area of land for construction of condominiums, land for use as yards and for planting flowers and trees around the condominiums and land for construction of infrastructure facilities outside the condominiums which directly serve the condominiums, to apartment owners for management and use under the investment projects.

Investors shall clearly determine the locations, boundaries and land areas under common use rights under the investment projects, detailed construction master plans and layout designs for submission to competent agencies for approval; and in house purchase and sale contracts and as-built drawings for carrying out the procedures for grant of certificates of land use rights and ownership of houses and other land-attached assets to the purchasers.

= Land use rights mentioned at Point a of Clause 3 Article 49 of Decree 43/2014/ND-CP are common use rights which cannot be divided. The ratio of land use rights shall be the ratio of the area of an apartment to the total floor area of all apartments in a condominium.

The use and disposition of land use rights in a condominium shall be decided by the majority of persons representing the ratio of land use rights but must serve the common interests of the community and comply with law;

= Apartment owners shall be granted certificates of land use rights and ownership of houses and other land-attached assets for the land area under common use as prescribed at Point a of Clause 3 Article 49 of Decree 43/2014/ND-CP for a long and stable term; the area of apartments shall be determined based on apartment purchase and sale contracts;

= Upon grant of certificates of land use rights and ownership of houses and other land- attached assets to apartment purchasers, the certificates already granted to investors prescribed in Clause 2 of Article 49 of Decree 43/2014/ND-CP shall be adjusted to the form of common use for the land area specified at Point a of this Clause.

The land area under housing development projects outside the areas specified at Point b of Clause 2 and Point a of Clause 3 Article 49 of Decree 43/2014/ND-CP shall come under the use rights of investors, for which investors shall be granted certificates of land use rights and ownership of houses and other land-attached assets.

2. What is apartment building?

According to Clause 3, Article 3 of the Law on Housing 2014, apartment building means any multi-storey building which has multiple apartments, public stairs, hall ways, private areas, common areas and common infrastructural works for organizations, households or individuals, including apartment buildings for residential use and mixed-use buildings for both business and residential purposes.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE