Requirements for business in rights to use land that already has infrastructure within real estate projects in Vietnam

Requirements for business in rights to use land that already has infrastructure within real estate projects in Vietnam (Image from the Internet)

1. Requirements for business in rights to use land that already has infrastructure within real estate projects in Vietnam

The requirements for business in rights to use land that already has infrastructure within real estate projects in Vietnam according to Article 29 of The Law on Real Estate Business 2023 are as follows:

- Real estate projects with usable land that has technical infrastructure brought into business must satisfy the following requirements:

+ The requirements stipulated in Article 11 of The Law on Real Estate Business 2023:

++ A real estate project must be conformable with the land use plan or planning.

++ It must be conformable with the planning approved in accordance with regulations of the Construction Law and the Law on Urban Planning.

++ Procedures for investment in and construction of the real estate project shall comply with regulations of laws on planning, investment, land, construction, housing and other relevant laws.

++ The real estate project has been granted the building permit, if required.

++ The investment in and construction of the real estate project must ensure the schedule, planning, design and implementation duration approved by competent authorities.

++ In addition to the provisions of clauses 1 through 5 of Article 11 of The Law on Real Estate Business 2023, a housing construction investment project shall also be required to meet relevant conditions set out in the Housing Law.

+ The construction of infrastructure facilities have been completed according to the approved detailed planning and the schedule approved by a competent authority in accordance with regulations of the Construction Law, the Law on Urban Planning and the Investment Law;

+ The provision of electric supply, water supply and drainage, waste collection and wastewater treatment services; connection to the shared infrastructure system of the region before the LURs are transferred, leased or subleased must be ensured;

+ Transfer, lease or sublease of rights to use land that already has infrastructure must be conformable with investment objectives and the investment project approved by competent authorities.

- Transfer, lease or sublease of rights to use land that already has infrastructure within real estate projects must meet the conditions set out in Articles 31 and 35 of The Law on Real Estate Business 2023 and be bound by provisions on forms, purposes and duration of land use, and land registration set out in the Land Law.

2. Obligations of parties in transactions involving transfer, lease or sublease of rights to use land that already has infrastructure within real estate projects in Vietnam

The obligations of parties in transactions involving transfer, lease or sublease of rights to use land that already has infrastructure within real estate projects in Vietnam according to Article 30 of The Law on Real Estate Business 2023 are as follows:

- Obligations of the transferor, lessor, or sublessor of land use rights with technical infrastructure in real estate projects are stipulated as follows:

+ Provide complete and truthful information about land use rights and be responsible for the information provided;

+ Hand over the land with the correct area, on time, with the correct location and boundary parcel as agreed in the contract;

+ Compensate for losses caused by their fault;

+ Fulfill financial obligations to the State as per law;

+ Complete land registration procedures following land laws and deliver the certificate of land use rights, ownership of assets attached to the land as per land laws to the transferee, except where the transferee voluntarily completes the certification procedures;

+ Register for leasing or subleasing land use rights as stipulated by law; instruct and remind the lessee or sublessee to protect and maintain the land and use it according to purpose; inform the lessee or sublessee about the rights of third parties concerning the leased land;

+ In case state enterprises transfer, lease, or sublease land use rights with technical infrastructure in real estate projects, they must also comply with laws on the management and use of state capital invested in production and business at enterprises;

+ Other obligations as per the contract.

- Obligations of the transferee, lessee, or sublessee of land use rights with technical infrastructure in real estate projects are stipulated as follows:

+ Pay the transferor, lessor, or sublessor for land use rights as per the timeline and method agreed in the contract;

+ Ensure the rights of third parties concerning the transferred, leased, or subleased land;

+ Compensate for losses caused by their fault;

+ Fulfill financial obligations to the State as per law;

+ Receive the land with the correct area, on time, with the correct location and boundary parcel agreed in the contract;

+ Use the land according to the right purpose and boundaries; do not destroy the land; do not infringe upon the lawful rights and interests of surrounding land users;

+ Return the leased land on time and as agreed in the contract;

+ Other obligations as per the contract.

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