Rules for transfer of all or a portion of real estate project in Vietnam

Rules for transfer of all or a portion of real estate project in Vietnam (Internet image)

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

1. Rules for transfer of all or a portion of real estate project in Vietnam

Specifically, Article 48 of the Law on real estate trading 2014 stipulates the rules for transfer of all or a portion of real estate project in Vietnam as follows:

- The real estate project investor may transfer all or a portion of a project to another investor for business.

- The transfer of all or a portion of real estate project shall meet the following requirements:

+ Do not change objectives of the project;

+ Do not change objectives of the project's plan;

+ Ensure the rights of clients and related contracting parties.

- The transfer of all or a portion of real estate project shall be approved in writing by competent agencies. The investor (transferee) may be granted the Certificate of land, ownership of land and property on land or may register the adjustments in the Certificated granted to the transferor as prescribed in law on land.

- The transferee is not required to complete the project documents, construction planning and license for construction again if the approval for investment policies and investment decision is not changed.

2. Requirements in terms of transfer of all or a portion of real estate project in Vietnam

Pursuant to Article 49 of the Law on real estate trading 2014, requirements in terms of transfer of all or a portion of real estate project are specified as follows:

- The transferred real estate project shall meet the following requirements:

+ The project is approved by competent agencies; there is a specific planning 1/500 or general ground planning which is approved;

+ The compensation or site clearance of the transferred project or a portion of the transferred project has been finished. Regarding transfer of all infrastructure construction projects, the technical infrastructure must be completed equivalent to schedule as specified in the approved project;

+ The land in the project is not disputed or distrained by a competent agency

+ There is no decision on project or land revocation conducted by a competent agency; in case there is any violation during the progress of the project, the investor must abide by the decision on penalty.

- The transferor has a Certificate of land regarding all or a portion of the transferred project.

- The transferee must be a real estate enterprise, acquire financial competence and commit to keep conducting the business as prescribed in regulations of law and ensure that the project is conducted under proper progress and plan.

3. Procedures for transfer of all or a portion of real estate project in Vietnam

According to Article 51 of the Law on real estate trading 2014, procedures for transfer of all or a portion of real estate project are prescribed as follows:

- The investor shall apply for transfer of all or a portion of the project to The People’s Committee of the province where the project or the body which is authorized by The People’s Committee of the province is located.

- Within 30 days from the day on which the satisfactory application is received, The People’s Committee of the province shall make a decision on permission for the transfer, if the application is rejected, the investor shall be informed in writing.

Regarding the project approved by the Prime Minister, the People’s Committee of the province shall confer with the Ministries in charge and the Ministry of Construction then send a report to the Prime Minister for consideration within 45 days from the day on which the satisfactory application is received.

- Within 30 days from the day on which the decision on permission for project transfer made by competent agencies, contracting parties must finish the transfer agreement conclusion and project transfer.

If the transferee who receive the real estate project is a foreign-invested enterprise, the transferor shall return the land to the State after the decision on permission for project transfer made by competent agencies;

Then the competent agencies shall allocate or lease out the land to the transferee within 30 days from the day on which the satisfactory application is received.

Ho Quoc Tuan

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