Conditions for transferring real estate investment and business projects in Vietnam
Conditions for transferring real estate investment projects? Dossier to transfer the whole or part of the project? The transfer of real estate projects will help improve the feasibility of the project. If the project for some reason can no longer be carried out, it will make the previous investor’s efforts go to waste, affecting the interests of many other stakeholders whose success will bring. So what are the conditions to transfer the project? To better understand this, today, LSX Lawfirm will give you an article about “Conditions for transferring real estate investment and business projects in Vietnam“, as follows:
Legal grounds
- Law on real estate business 2014
What is real estate investment project transfer?
Transfer of real estate business investment project (real estate) means the transfer of all or part of capital by the old real estate investor; and the power to implement real estate projects for new real estate investors. The new real estate business investor is responsible for continuing the project implementation; inherits the rights and obligations of the previous investor with the project (or part of the project); for projects transferred for business investment then.
Transfer conditions
Pursuant Article 49 of the Law on Real Estate Business 2014 clearly stipulates the conditions for transferring part or all of real estate investment projects then. The specific conditions are as follows:
Conditions of the project to be transferred
The project has been approved by a competent state agency; detailed planning 1/500 or master plan has been approved.
This condition ensures that this project considered and approved by the State to transfer the project; serves as an important basis for accurately determining the boundaries of construction works; the location of the project – is an important basis for the competent authority to issue a construction investment license for the project, or preparatory work done. At the same time, from the master plan, the transferee knows what their rights and interests are after the assignment; along with that is the obligation they have to perform towards state agencies and customers.
The project, part of the project transferred has completed the compensation and site clearance.
To avoid disputes and conflicts after the transfer. If the transferred project not yet completed the compensation; clearance is not eligible to allowed to transfer.
In case of transfer of the entire infrastructure construction investment project, the corresponding technical infrastructure works must be completed according to the schedule stated in the approved project.
These works and infrastructure must ensure a connection with the general infrastructure system of the area and ensure the provision of essential services including electricity supply, water supply, water drainage, and waste collection. As a basis for the transferee to know the address, location of the land, and the general infrastructure of the project recorded in the legal file so that they not deceived into buying land from ghost projects or non-proprietary projects. Preventing speculation, avoiding the situation that many investors are unable to implement, only speculating on land and then transferring it for profit, delaying and raising investment costs in projects.
– The project has no dispute over land use rights; not be distrained to ensure judgment enforcement; or to comply with an administrative decision of a competent state agency.
If the project still has unresolved disputes that transferred, it is very difficult to determine who will responsible. Failing to guarantee the full benefits to the new transferee; at the same time can lead to more complex conflicts. In case the investor has a distrained project, in order to secure the judgment enforcement, the investor determined to be the judgment debtor. The execution of the judgment intended to fulfill the obligations of the investor towards other subjects according to the executed judgment. When the project has a decision on distraint to secure the judgment enforcement; investors not allowed to transfer these projects.
– There is no decision on a project or land acquisition by a competent state agency.
According to Clause 11 Article 3 of the 2013 Land Law, which stipulates land recovery by the State: “The State’s land recovery is the State’s decision to recover the land use rights of the person to whom the State grants the land use right or recovers the land. of land users violating the law on land”. Accordingly, when there is a decision on land recovery, the land use right no longer exists; The State will revoke the land use right certificate and not transfer the land use right. Therefore, the conditions for transferring land use rights not met.
In case of violations during project implementation; the investor must complete the sanctioning decision. Ensure that the violations of the former investor have resolved; do not cause disadvantage to the new investor when receiving the transfer.
Investor’s conditions
Transferred by the investor
There is a certificate of land use right for the whole or part of the project to transferred. The land use right certificate is a legal document for the State to certify the land use rights and ownership of houses and other land-attached assets; is a sufficient legal basis to settle the land relationship; It is also the legal basis for the state to recognize and protect land use rights. Therefore, when transferring a real estate investment project, this document required for the State to protect legal assets; create a premise to form a public real estate market; healthy avoid manipulation or illegal speculation in real estate.
The investor receives the transfer
Being a real estate business; have sufficient financial capacity and commit to continue the implementation of construction investment. And business in accordance with the provisions of law; ensure the progress and content of the project. The real estate project investor is the project developer; fully responsible for the quality and schedule. As well as investment efficiency of real estate projects. Therefore, the investor must have enough financial capacity to continue completing the project; fulfill its financial obligations to the state.
Project file, a proposed project for transfer
Pursuant to Clause 2, Article 12 of Decree 76/2015/ND-CP. Records include:
Proposal
An application form for permission to transfer the whole or part of the project by the transferor made according to Forms 08a and 08b specified in the Appendix to this Decree then.
The project dossier, the proposed part of the project for the transfer includes:
Investment permit or investment approval document issued by a competent state agency (certified copy);
– Decision approving the project, detailed planning 1/500; or master plan (certified copy);
– Certificate of land use right of the whole; or part of the project proposed for transfer (certified copy).
The dossier of the transferee investor includes:
– An application for transfer of a project or part of a project, made according to Forms No. 10a and 10b specified in the Appendix to this Decree;
- Firstly, Certificate of business registration with real estate business lines; or Certificate of enterprise registration with charter capital, satisfying the requirements specified in Article 3 of this Decree (certified copy); except for cases where the foreign investor has not yet established an economic organization in accordance with the law on investment;
- Secondly, Documents proving that there is capital under their ownership; to implement the project in accordance with the law on investment and land.
In case there is no document proving the above; must be certified in writing by an independent auditing organization. Or audited financial statements of the enterprise’s equity at the latest time. (the year of transfer or the year preceding the year of transfer) for an operating enterprise;
For newly established enterprises, if the capital is Vietnamese dong or foreign currency, they must be certified by the commercial bank where such enterprise opens an account of the enterprise’s deposit balance; if the capital is an asset, there must be a certificate from an organization with valuation or valuation function operating in Vietnam about the results of valuation and appraisal of the enterprise’s assets,
Report on the project implementation process of the transferring investor up to the time of transfer
Report according to Forms 09a and 09b specified in the Appendix issued with this Decree.
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Related questions
– Firstly, Projects approved by the People’s Committee of the province for investment shall be considered and handled by the People’s Committee of the province.
– Secondly, For projects approved by the Prime Minister for investment, the provincial People’s Committees shall consult relevant agencies to report to the Prime Minister for decision.
Within 45 days from the date of receipt of a complete and valid dossier, the People’s Committee of the province shall consider and reply in writing to the investor on whether or not to permit the transfer of the project then.
Application for registration of changes in land and properties attached to land (made according to the form). Original Certificate issued. Contract on the transfer of land use rights and ownership of land-attached assets made at a notary organization where the land is located. (according to the form above) then.
Conclusion: So the above is Conditions for transferring real estate investment and business projects in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
