New regulations have been formulated for the transfer of real-estate projects under a new “Law on Real-Estate Business,” which will take effect from July 1.
Project investors will now be required to meet certain conditions set for real-estate projects, fulfil conditions for investors and also requirements for project transferees, according to the HCM City-based PLF Law Firm.
Real-estate projects, which are going to be transferred, must be approved by competent state agencies and should have detailed planning with a scale of 1/500 approved by authorised agencies.
These projects also need to complete land clearance and compensation tasks, as well as have no disputes related to land use rights before transfers.
Meanwhile, the projects’ owners are required to get a land use rights certificate if they want to transfer the projects.
As far as transferees are concerned, they must be businesses dealing in real estate, with a qualified financial capacity and must commit to continue implementing the construction of the projects in line with current regulations.
Besides, the transfer of real-estate projects must follow several principles, including not changing the target and content of the projects and ensuring interests of projects’ customers and related parties.
Under the new regulations, transferees that are foreign-invested enterprises will have to complete procedures to return the projects’ land to the State after the projects get transfer permission and will then have to register with the authorised agencies for hiring the land.