Real estate business is the investment of capital to carry out construction activities, purchase, receive assignment for sale or transfer; lease, sublease, lease purchase real estate, perform real estate brokerage services; real estate trading floor services; real estate consulting or real estate management services for profit. In the following article, DHPLAW will help customers better understand the conditions for investing in selling houses and land in real estate projects.
- Concept of real estate business
- What is a real estate business project?
A real estate business project is understood as an investment by an investor in order to establish a business model on a land plot to provide real estate services, including:
+ Business investment project of office buildings;
+ Project of apartments for rent;
+ Commercial center project;
+ Hotel and restaurant projects;
+ Project on housing services;
+ Industrial park infrastructure projects;
+ The combined project provides the above service types and other types of models.
- Conditions to become a real estate project investor
The investor must establish an enterprise or a cooperative that registers the real estate business with a legal capital of not less than VND 20 billion, except for cases where organizations and individuals sell, transfer, lease-purchase real estate. small real estate.
- Legal profile of a real estate business project
For real estate project investors, one of the first things to pay attention to is the legality of the project. Legal documents are considered as certificates, commitments about the authenticity of a real estate project. If a real estate project does not have legal documents to support the project, it is very likely that the project is virtual, not viable, investors should avoid projects that are not legally clear. to avoid being exposed to risks. A real estate project includes the following legal documents and documents:
– Business license of the investor,
– Decision on investment policy at the investment registration agency of a competent state agency
+ Building permit
+ Detailed planning map of 1/500 scale.
– Bank guarantee
In addition, the legal documents for project land that are eligible to sign a purchase and sale contract should pay attention to the accompanying issues such as: The approved 1/500 detailed plan; The investor has invested in traffic technical infrastructure; The investor has paid the land use tax in full…
III. The time when the investor is entitled to sell and transfer products (house, land) in the project.
- For residential real estate projects
Pursuant to Article 9 of the Law on Real Estate Business, requirements for real estate put into business are prescribed as follows:
– For real estate being houses and construction works:
+ Having registered ownership of houses and construction works attached to land in the certificate of land use right. For houses and construction works available in real estate investment and business projects, only a certificate of land use rights is required in accordance with the provisions of the law on land;
+ There is no dispute over land use rights, ownership of houses and construction works attached to the land;
+ Not being distrained to ensure judgment enforcement.
– For land permitted to trade in land use rights
+ Having a certificate of land use right in accordance with the law on land;
+ There is no dispute over land use rights;
+ The land use right is not distrained to secure judgment enforcement;
During the land use period.
– For a project to sell real estate as housing in the future, under an investment project to build an urban area or an investment project to build a house, the investor must comply with the provisions of Article 55 of the Law on Business. Real estate 2014.
Accordingly, before selling residential real estate, the investor must send a written notice to the Department of Construction that the house is sold, lease-purchased, and eligible to be sold as prescribed in Clause 1, Article 55 of the Law on Business. Real estate in 2014 and sold only after a written notice of eligibility for sale from the Department of Construction.
+ Pursuant to the provisions of Article 54 of the Law on Real Estate Business, “the real estate project investor has the right to sell, rent, lease-purchase houses and construction works to be formed in the future.” when fully meeting the conditions specified in Article 55 of the Law on Real Estate Business, specifically:
- Having papers on land use rights, project dossiers, construction drawing designs approved by competent authorities,
- Construction Permit, for cases where a Construction Permit is required,
- Papers on acceptance of the completion of the corresponding technical infrastructure construction according to the project schedule.
- Before selling or leasing-purchase houses to be formed in the future, the investor must notify in writing the provincial housing management agency that the house is eligible for sale or lease-purchase.
- For real estate projects in subdivision and ground sale
Pursuant to the provisions of Article 41 of Decree 43/ND-CP, conditions for investment projects to build and trade houses for sale or for sale in combination with lease to transfer land use rights in the form of subdivision , background sale is regulated as follows:
– Consistent with the annual land use plan of the district level;
– The project investor must complete the investment in the construction of infrastructure including service works, technical and social infrastructure works according to the approved 1/500 detailed construction planning. ; ensure connection with the common infrastructure system of the area before transferring land use rights to people to build their own houses; ensure the provision of essential services including electricity supply, water supply, water drainage, waste collection;
– The investor must fulfill the financial obligations related to the project’s land, including land use levy and land rent; taxes, fees and charges related to land (if any);
– Projects in urban areas or urban areas may have land use rights transferred in the form of subdivision or land sale.
Currently, society is developing, the demand for housing and residential land is also increasing, so real estate projects also become more exciting and get more attention from investors and customers. However, in practice, many investors still open for sale and mobilize capital from customers when the project does not meet all legal conditions and has not been approved by the authorities. For customers, when approaching to find out and intend to buy real estate formed in the future, it is necessary to clearly understand the law and conduct information search to avoid risks.
real estate support and advice In the best way, customers please contact us with the following information:
DHP LAW LAW – DHP LAW
Address: L4-09.OT06 Landmark 4 Building, Vinhomes Central Park, 720A Dien Bien Phu, Ward 22, Binh Thanh District, Ho Chi Minh City.
Email: lawyer_duchung@yahoo.com
Website: www. .dhplaw.vn
Phone: 0986.938.627
