Vietnam’s law pertaining to Real Estate Trading permits investors to transfer all or a portion of real estate projects that comform to requirements of the law.
This is an effective solution to help investors avoid challenging funding situations or an inability to retain projects. Concurrently, this is an opportunity for investors to obtain inequitable value after investing to construct the initial infrastructure.
Nevertheless, legal problems inhibiting the transfer and receipt of real estate projects are inevitable and should be expected and investors, realtors, and business entities are encouraged to take an interest in navigating through the legal dilemmas that transpire.
This post, prepared by CNC’s Lawers clarifies the following:
- What is the legal transfer of real estate projects?
- Conditions for transferring real estate projects
- The process of transferring of real estate projects
- Procedures for transferring real estate projects
- Rights and obligations of investors transferring real estate projects
What is the legal transfer of real estate projects?
Transfering projects is the right of investors to transfer all or a portion of projects to other investors to ensure they can keep trading under conditions of law.
The legal transfer of real estate projects must meet certain requirements:
Requirements in terms of transfer of real estate projects
Transfered real estate projects must meet the following requirements:
Competence in transfer of all or a portion of real estate project:
Transfering approved projects by Provincial People’s Committees
The Provincial People’s Committee of the province where the project is located or the body authorized by the Provincial People’s Committee, specifically:
Procedures for transfer:
Document of Transfering real estate project include:
|No||Name of document||Note|
|1||Application form for transfer||Form No. 08a and 08b prescribed in the Appendix of Decree 76/2015/NĐ-CP|
|2||Investment permit or an investment acceptance certificate||Certified true copy|
|Documents pertaining to the entire project or portion of the project to be transferred||A decision on approval for the project, a 1/500 detailed planning or a master plan||Certified true copy|
|Entire project certification or certification the portion to be transferred||Certified true copy|
|Project progress report from execution until the the time of transfer by the transferor||Form No. 9a and 9b prescribed in Appendix issued of Decree 76/2015/NĐ-CP|
|4||Investor (transferee) documentation||Application for receipt of transfer||Form No. 10a and 10b prescribed in Appendix issued of Decree 76/2015/NĐ-CP|
|Business registration certification containing the real estate business line or enterprise registration certification||Amount of legal capital of no less than 20-billion VND, excluding foreign investment not yet established as a business organization which will be executed in accordance with the Investment Law
Certified true copy.
|Proof of owner’s equity
Without proof of owner’s equity as prescribed in the law on investment and land, required certification of equity must be issued by an independent auditor, or the most recent (withint the last year) financial statement which demonstrations the owner’s equity has been legally and officially audited.;
With respect to new enterprises, if the capital is in the form of VND or foreign currency, the commercial bank where such enterprise opened its account must certify the amount of the deposit balance, if its capital is in the form of assets, a certificate of valuation of the value of the enterprise’s assets must be issued by a competent assessor.
Transfer of land use rights of the project or the portion thereof, must comply with the law on land.
Procedures for the transfer of the entire real estate project, or a portion thereof, is decided by the Prime Minister
The investor transferor must submit an application to the provincial People’s Committee where the project is located.
Within 45-days from the day on which the satisfactory application is received, the Provincial People’s Committee will consult with the Ministry of Planning and Investment, Ministry of Finance, Ministry of Natural Resources and Environment, Ministry of Construction, specialized ministries, and the assessor as prescribed in Article 14 of this Decree and request the decision of the Prime Minister to grant a transfer permit.
Miscellaneous content of the transfer, in whole or in part, will also be decided by the Prime Minister.
Assessment and opinions about transfer (in whole or in part of a project) documentation
Content of assessment and opinions about documents on transfer of the whole or a part of the project include:
CONTRACT FOR TRANSFER OF THE WHOLE OR A PART OF PROJECT
Contract for transfer of projects – either in whole or in part – must include the following content:
Rights and obligations of parties