What is real estate business? What forms and activities are included? Features of real estate business. LSX Lawfirm will give you an article about: “Forms of real estate business in Vietnam”, as follows:
Legal grounds
Real estate business law 2014
Law on land 2013
Real estate business concept
So, Real estate business means the investment of capital to carry out activities of construction, purchase, receipt of transfer for sale, transfer, lease, sublease or lease purchase of real estate; real estate brokerage services, real estate transaction services; real estate consulting services or real estate management for profit purposes (Clause 1, Article 3, Law on Real Estate Business 2014).
The basic feature to distinguish land transactions or real estate transactions in the market that is considered real estate business is profit. Therefore, land transactions such as conversion, inheritance, mortgage are not considered as real estate business.
So Real estate transactions related to real estate business are the purchase, sale, transfer, lease, lease purchase of real estate between organizations and individuals not doing real estate business and organizations and individuals doing business. real estate.
So, Real estate business in Vietnam is understood as real estate business and real estate service business. Real estate service business is activities that support real estate business and real estate market.
Transactions related to real estate business include
- Firstly Buying and selling houses attached to residential land use books;
- Secondly Buying and selling houses without the right to use residential land,
- Thirdly Transfer of land use rights;
- Then Sub-lease the land use right;
- Housing for rent;
- House rental transactions;
- Transaction of house ownership conversion.
Transactions related to real estate service business include
- Real estate brokerage,
- Real estate valuation;
- So Real estate consulting;
- Real estate auction
- Real estate advertising,
- Finally Real estate management.
Real estate business is available
Firstly, Real estate business is houses, construction works
Forms of investment to create houses and construction works
The business of investing in the creation of houses and construction works for business is regulated by organizations and individuals doing real estate business when investing in the creation of houses and construction works for business in the following forms:
- Firstly Investment in building new houses and construction works;
- Secondly Investment in renovation and repair of existing houses and construction works.
- Thirdly Organizations and individuals investing in the creation of houses and construction works for business must conform to the construction plannings already approved by competent state agencies.
- Finally Organizations and individuals investing in the construction of new urban areas, residential areas and technical infrastructure of industrial parks must have investment projects. The selection of an investor in a new urban area project, a housing project project, or an industrial park technical infrastructure project must comply with the law on construction and the law on bidding. The project investor must have the financial capacity to implement the project.
Principles of buying copies of houses and construction works
Trading in real estate is the right to own houses and construction works to be purchased and sold, and must ensure the following principles:
So Houses, construction works to be purchased and sold include existing houses and construction works; under construction or to be formed in the future according to approved projects, designs and schedules.
Organizations and individuals doing real estate business must sell houses and construction works through the real estate trading floor. 3. The sale of houses and construction works must be accompanied by the transfer of land use rights as follows:
a. For villas and separate houses in urban areas, the land use right transferred at the same time;
b. For houses and other construction works; the transfer of land use rights shall comply with the provisions of the land law. In case of sale of an apartment building or a part of an apartment building; it associated with the land use right, the shared use parts and the equipment and facilities in the house under common ownership.
So The copy of the house or construction work enclosed with the dossier on the house and construction work. House and construction documents include documents about the creation, ownership, change process and legal status of the house and construction.
So the purchase of a copy of a house or construction work made into a contract; in accordance with the Law on Real Estate Business and other relevant laws; so in case the house or construction work formed during the period. In the future, the parties must agree in the contract on the purchase and sale price at the time of signing the contract; regardless of the time of handing over the house or construction work.
Real estate business is the right to use land
Organizations and individuals trading real estate may invest in the creation of a land fund with infrastructure for transfer or lease in the following forms:
a. So Invest in land reclamation and construction of infrastructure works to transfer and lease land with infrastructure;
b. So Invest in infrastructure works on the transferred land for transfer.
leasing land with infrastructure: c. Investing in infrastructure on leased land to lease land with infrastructure.
The investment and creation of a land fund with infrastructure for transfer or lease must be consistent with master plans, plans on land use, construction planning and relevant laws.
Land use rights may only transferred or leased when the conditions specified in Clause 1, Article 9 of the Law on Real Estate Business satisfied. The transfer or lease of land use rights carried out in the following forms:
– Agreement between the parties;
- Auction of land use rights.
The transfer and lease of land use rights made into a contract in accordance with the Law on Real Estate Business and other relevant laws.
Real estate business formed in the future
Real estate business rights formed in the future
In Article 54 – Law on Real Estate Business 2014 stipulates that the right to trade in real estate formed in the future is as follows: The investor of a real estate project has the right to sell, rent, lease-purchase houses and works. construction in the future.
The sale, lease, lease-purchase of houses and construction works formed in the future must comply with the Law on Real Estate Business 2014.
Conditions of real estate formed in the future put into business
Real estate formed in the future put into business must meet the following conditions (Article 55 – Law on Real Estate Business 2014):
Having papers on land use rights, project dossiers, construction drawing designs already approved by competent authorities; construction permits, for cases requiring construction permits, papers on testing collect the completion of the corresponding technical infrastructure construction; according to the project schedule; In the case of an apartment building or a mixed-use building; built in the future, there must be a record of acceptance and completion of the foundation of that building.
Before selling or leasing-purchase houses formed in the future; the investor must notify in writing the provincial-level housing management agency that the house is eligible for sale or lease-purchase.
Within 15 days from the day on which the notice received, the housing authority of the province shall reply in writing to the investor about the house that eligible for sale or lease-purchase; In case of ineligibility, the reason clearly stated.
Guarantee in the sale, lease-purchase of houses formed in the future
The implementation of guarantees in the sale, lease-purchase of houses formed in the future specified in Article 56 – Law on Real Estate Business 2014 as follows:
Before selling, leasing or buying future houses, the investor of a real estate project; must receive a guarantee from a qualified commercial bank for the investor’s financial obligations to the customer. The investor does not hand over the house according to the schedule committed to the customer.
The State Bank of Vietnam shall announce a list of commercial banks capable of providing guarantees; in the future real estate business.
- The scope, conditions, content and guarantee fee agreed upon by the parties but must ensure the fulfillment of responsibilities of the guarantor. In case the investor fails to hand over the house according to the committed schedule ; and the buyer or the lessee requests, the guarantor is responsible for refunding the advance amount; and other amounts to the customer according to the agreed schedule. signed housing purchase and sale contract; lease purchase agreement and signed guarantee contract.
The investor is responsible for sending a copy of the guarantee contract to the purchaser; and the lessee when signing the purchase or hire-purchase contract.
The guarantee contract has a term until the house handed over to the buyer or the lessee.
The guarantee in the sale, lease-purchase of houses formed in the future shall comply with the provisions of Article 56 of the Law on Real Estate Business; and the provisions of the law on guarantees.
Payment in purchase, sale, lease purchase of real estate formed in the future
The payment in purchase, sale, lease purchase of real estate formed in the future made many times; the first time must not exceed 30% of the contract value; the subsequent times must be consistent with the progress of real estate construction but the total amount does not exceed 70% of the contract value; before handing over the house or construction work to the customer; In case the seller or the lessor is a foreign-invested enterprise; the total amount shall not exceed 50% of the contract value.
In case the purchaser or lessee has not granted a certificate of land use rights and ownership of houses; and other land-attached assets, the seller or lessor may not collect more than 95% of the contract value. ; The remaining value of the contract paid; when the competent state agency has granted the certificate of land use rights; and ownership of houses and other land-attached assets to the purchaser or the lessee.
The investor must use the customer’s advance money; according to the committed purpose (Article 57 – Law on Real Estate Business 2014).
Related questions
In addition to the rights and obligations of the parties in real estate purchase, sale and lease-purchase specified in Chapter II of the Law on Real Estate Business 2014, the parties also have the following rights and obligations:
– The buyer, the lessee has the right to request the seller, the lessor to provide information on the construction investment progress, the use of the advance payment and the actual inspection at the construction site;
– The seller, the lessor is obliged to provide information on the construction investment progress, the use of the advance, and create conditions for the purchaser and the lessee to inspect the actual work at the construction site.
The purchaser and the lessee have the right to transfer the future house purchase or lease purchase contract when the application for a certificate of land use rights and ownership of houses and other assets is granted. For land for the purchaser, the lessee has not yet submitted it to the competent state agency. The transfer of contracts for purchase, sale, and lease-purchase of houses to be formed in the future must be made in writing and certified by the investor in the transfer document.
The transferee of the contract may continue to perform the rights and obligations of the buyer and the lessee to the investor. The investor is responsible for creating favorable conditions for the parties to transfer the contract and must not collect any costs related to the contract assignment.
You can refer to the article related to Procedures to establish a real estate brokerage company in Vietnam; or Prohibited acts in real estate business in Vietnam or General regulations on real estate business activities in Vietnam; Conditions for establishing a real estate brokerage company in Vietnam.
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