Scope of real estate trading conducted by Vietnamese organizations, individuals

Scope of real estate trading conducted by Vietnamese organizations, individuals (Internet image)

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

1. Scope of real estate trading conducted by Vietnamese organizations, individuals

According to Clause 1, Article 11 of the Law on Real Estate Trading 2014, any Vietnamese organizations and individuals may conduct real estate trading under following forms:

- Purchase buildings for sale, for lease, or for lease purchase;

- Rent buildings for sublease;

- Build houses on land which is allocated by the State for sale, for lease, or for lease purchase; transfer the land which is divided into smaller lots for sale as prescribed in law on land; build technical infrastructures of cemetery on that land for transfer of both the land and the technical infrastructures;

- Build houses on the land which is leased by the State for lease; build houses or constructions other than houses on such land for sale, for lease, or for lease purchase;

- Build houses on land which is recognized by the State for sale, for lease, or for lease purchase;

- Build buildings on land which is transferred from organizations, households or individuals for sale, for lease, or for lease purchase;

- Build buildings on land which is leased from organizations, households or individuals for lease according to proper land use.

- Receive total or a part of real estate project from investors to build buildings on it for sale, for lease, or for lease purchase;

- Receive or rent land from organizations, households or individuals to build technical infrastructures on it for transfer or lease of both the land and the infrastructure.

2. Requirements in terms of real estate to be put on the market in Vietnam

Requirements in terms of real estate to be put on the market in Vietnam ccording to Article 9 of the Law on Real Estate Trading 2014 are as follows:

- A building to be put on the market shall satisfy the following requirements:

+ The ownership of the building on land is registered in the Certificate of land use right (hereinafter referred to as Certificate of land). Regarding an off-the-plan building in the real estate project, it is only required to have the Certificate of land as prescribed in regulations of law on land.

+ There is no dispute about the land and ownership of the building on land.

+ The building is not distrained.

- Types of land permitted to be put on the market shall satisfy the following requirements:

+ There are Certificates of land as prescribed in regulations of law on land.

+ There is no dispute about the land.

+ The land is not distrained;

+ The land use term is still unexpired.

3. Responsibility of investors of real estate projects in Vietnam

Responsibility of investors of real estate projects in Vietnam under Article 13 of the Law on Real Estate Trading 2014 are as follows:

- Invest in construction, trading, management and operation of real estate projects as prescribed.

- Ensure financial resources to run the projects on approved schedule.

- A house or a building is only transferred to clients if that building or other infrastructure is finished on schedule as specified in the approved project and they are connected to general infrastructure in such area; in case a house or an unfinished building is transferred, whole outside of such house or construction must be completed.

- Apply for Certificate of land, ownership of houses and property on land granted to the buyer or the renter and issued by competent agencies within 50 days from the day on which the house or the building is transferred to the buyer or from the deadline of lease purchase, except that the buyer or the renter requests in writing that they shall apply themselves for the Certificate.

- Do not authorize any organization to participate in investment cooperation, joint venture, association, business cooperation or capital contribution to sign the agreement on real estate sale, transfer, or lease purchase.

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