When buying a house that forms in the future, buyers pay most of their attention to the payment schedule. Buyers as well as sellers need to understand the regulations on payment for houses formed in the future in order to ensure their legitimate interests. Therefore, when buying an off-plan house, parties should know how the payment schedule carried out. In this article, LSX legal firm provides: “Payment schedule for off-the-plan house in Vietnam”
Legal grounds
- Law on Housing 2014
- Law on Real Estate Trade 2014
The concept of “Off-the-plan house”
Off-the-plan housing is a type of property formed in the future and transactions on off-the-plan housing are subject to the general regulation of the law on off-the-plan properties and the law on housing.
Housing approached from the perspective of legal science subjects to regulation by many branches of law and each branch of law has its interpretation from different aspects:
- From a civil perspective, a house belongs to types of real estate property – the object of a number of civil transactions such as transactions on housing purchase and sale, housing donation, housing lease, housing mortgage,…
- From the perspective of construction, the law recognizes a house as a type of construction work, which is a product made up of human labor, construction materials, and equipment installed in the work, positioned with the land, may include the below ground, above ground, built according to the design.
According to Clause 1, Article 3, the Law on Housing 2014, a house means a work built for the purpose of living and serving the daily-life needs of households and individuals.
Clause 4, Article 3 of the Law on Real Estate Trading 2014 stipulates off-plan houses as:
“Off-the-plan building means any building which is under construction and has not been permitted to be put into operation”.
When it comes to house to be formed in the future, you can understand it as a house, at the present time, has not been formed and has certain conditions and bases to see that such house will be built in the future.
Conditions to put off-plan housing into business
In order to go into business, a house formed in the future must meet the conditions specified in Article 55 of the Law on Real Estate Trading 2014, specifically as follows:
Article 55. Requirements in terms of off-the-plan real estate to be put on the market
There are documents on land, project documents, or construction drawings approved by competent agencies, License for construction if it is required, documents on certification of completion of technical infrastructure in equivalent to project progress; or it is required to gain the certification of completion of the foundation of the building regarding off-the-plan apartment buildings or mix-used buildings.
Before entering an agreement on the sale or lease purchase of an off-the-plan building
Within 15 days from the day on which the notification is received, the agency in charge of housing of the province shall respond in writing to the investor with the building permitted to be sold or leased purchase; if the building does not meet the requirements, they must provide an explanation.
Payment schedule for off-the-plan house
Under Article 57 of the Law on Real Estate Trading 2014, the payment for the purchase and sale of houses formed in the future:
“Article 57. Payment for an off-the-plan real estate sale or lease purchase
1. The off-the-plan real estate sale or lease purchase shall be paid by installments, the initial installment does not exceed 30% of the agreement value, and the next installments shall be conformable with real estate construction progress provided that the total installment does not exceed 70% of the agreement value if the building has been not transferred to clients; if the seller or the lessor is a foreign-invested enterprise, the total installment does not exceed 50% of the agreement value.
If the buyer or the lessee has been not granted the Certificate of land, ownership of land, and property on land, the seller or the lessor shall not collect payment not exceeding 95% of the agreement value from the buyer or the lessee; the remaining value shall be paid when the buyer or the lessee is granted the Certificate of land, ownership of land and property on land by competent agencies.
2. The investor must use the option fee given by clients for the proper purpose as committed.”
Accordingly:
- Payment made in installments;
- The first time does not exceed 30% of the contract value
- Subsequent payments are subject to the agreement of the two parties and the construction progress, but must not exceed:
- 70% before handing over the apartment
- 95% before obtaining the Certificate of land use rights, ownership of houses, and assets attached to land (Certificate)
- The remaining 5% paid when the investor hands over the certificate to the buyer.
The rights of the parties
Rights of the seller under Article 21 of the Law on Real Estate Trading 2014:
- Request the buyer to receive the building by the deadline specified in the agreement.
- Request the buyer to pay off the total amount by the deadline and method specified in the agreement; in case there is no agreement, the buyer may only pay not exceeding 95% of the amount of agreement value if he has not been granted Certificate of land, ownership of land and property on land.
- Request the buyer to cooperate in the completion of procedures for sale by the agreed deadline.
- Do not transfer the building if the total amount is not paid off unless otherwise agreed
- Request the buyer to compensate for damage caused by the buyer’s fault.
- Exercise other rights specified in the agreement.
Rights of the buyer under Article 23 of the Law on Real Estate Trading 2014:
- Request the seller to complete procedures for building sales by the deadline specified in the agreement.
- Request the seller to transfer the building by the deadline with quality and other conditions specified in the agreement; transfer the Certificate of land, ownership of land, and property on land and related documents under the agreement.
- Request the seller to provide a warranty on the sold buildings as prescribed in Article 20 of this Law.
- Request the seller to Pay compensation for damage caused by the building are not transferred on schedule with quality and other commitments specified in the agreement.
- Exercise other rights specified in the agreement.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
Contact LSX
The above content details information regarding “Payment schedule for off-the-plan house in Vietnam”. LSX Legal Firm has provided effective legal guidance to businesses and individuals with reasonable prices as well as efficient outcomes in recent years. Following legal principles, we always update and keep our operations and services on track with the law. If you need any further information from the firm’s solicitors, please contact LSX Law firm: +84846175333 or Email: [email protected]
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Frequently asked questions
According to clause 1, article 54 of the Law on Real Estate Trading 2014, a real estate investor is entitled to sell, lease or lease purchase off-the-plan buildings.
Clause 2, Article 17 of the Law on Real Estate Trading 2014 stipulates that:
“A real estate trading agreement must be made in writing. The agreement notarizing or authenticating shall be agreed by contracting parties, excluding building sale or lease purchase agreements or land transfer agreements concluded by households and individuals prescribed in Clause 2 Article 10 of this Law”
Firstly, the buyer or the lessee may request the seller or the lessor to provide information about construction progress, option fee use and physical verification at the work.
Secondly, the seller or the lessor must provide information about construction progress, option fee use and enable the buyer to conduct physical verification at the work.
Conclusion: So the above is Payment schedule for off-the-plan house in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
