What Must Investors Meet Before Trading Future-Formed Housing?

What must investors meet before trading future-formed housing is a question of great interest in the real estate sector. Before signing contracts and mobilizing capital, investors must fulfill conditions regarding land, investment, construction, and financial guarantees. Long Phan Consulting Company outlines these requirements below to help minimize risks and ensure compliance.

The concept of future housing

Based on Clause 5, Article 3 of the Law on Real Estate Business 2023, future-formed housing/construction is housing/construction that is in the process of construction or has not yet been accepted for use.

• Key Factor: Even if physically complete, an asset is still considered “future-formed” if it lacks the written acceptance approval from the competent state authority.

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Conditions for putting housing projects under construction into business.

According to Article 24 of the Law on Real Estate Business 2023, investors must meet the following conditions:

1. Construction Commencement: Construction has commenced according to construction laws.
2. Land Use Rights Documents: Must have one of the following: Land allocation decision, Land lease decision/contract, Decision permitting land use purpose change, or Certificates (LURC/Pink Book).
3. Construction Documents:
   • Construction permit and application dossier (if required).
   • Notice of construction commencement and design dossier (if exempt from permit).
   • Acceptance Documents: Documents on acceptance of technical infrastructure corresponding to project progress.
   • For apartment/mixed-use buildings: Must have documents proving acceptance of the foundation.
4. Notification to Authority: Before selling/lease-purchasing, the investor must notify the provincial state management agency (Department of Construction). Within 15 days, the agency checks and responds in writing regarding eligibility.
5. Project Approval: Must be within a real estate project approved by competent authorities, with the approved purpose of building housing for sale/lease-purchase.
6. Dispute & Financial Status:
   • Not under dispute, distraint, or transaction suspension.
   • Financial Obligations: The investor must have completed financial obligations regarding land (land use levy, rent, taxes, fees).
7. Information Disclosure: Information about the real estate/project has been publicly disclosed.
8. Floor Areas: Trading specific floor areas must also meet conditions under Clause 3, Article 14.

Handover of houses and construction projects that are yet to be completed.

According to Article 27 of the Law on Real Estate Business 2023:

1. Handover follows housing laws.
2. Principles:
   • The construction has been accepted for operation/use.
   • Handover must be recorded in writing.
   • Follows conditions and procedures under construction laws.
3. Recipient: The buyer directly receives the handover or authorizes a representative in writing.

>>> See more: How to pay for housing purchase contracts formed in the future?

Long Phan Consulting provides business consulting services for properties under construction.

Long Phan Consulting Company provides comprehensive solutions for investors and buyers in the complex real estate market:

1. For Project Investors:

• Reviewing project dossiers to ensuring full compliance with conditions.
• Drafting and appraising sales/lease-purchase contracts.
• Representing the investor in notifying eligibility for sale.

2. For Individual Clients & Secondary Investors:

• conducting project due diligence.
• Advising and negotiating key contract terms.
• Representing clients in negotiations and administrative procedures.

Frequently Asked Questions

Below are some frequently asked questions about the conditions that must be met before putting housing under construction into business. Please refer to them:

Can contracts be signed if the foundation is not finished?

No. For apartment/mixed-use buildings, having an acceptance report for the completion of the foundation is mandatory to be eligible for business. (Legal Basis: Point c, Clause 3, Article 24, Law on Real Estate Business 2023).

Which agency confirms eligibility for sale?

The Department of Construction (Provincial state management agency regarding real estate business). (Legal Basis: Clause 4 Article 24 Law on Real Estate Business 2023; Clause 1 Article 26 Decree 144/2025/ND-CP).

Can mortgaged projects be traded?

Yes, provided the project is released from mortgage or the mortgagee agrees and the buyer consents. However, generally, assets under distraint for judgment enforcement cannot be traded. (Legal Basis: Article 320/321 Civil Code 2015; Point c Clause 1 Article 14 Law on Real Estate Business 2023).

Is a written handover record required?

Yes. Handover of construction/floor areas must be recorded in writing between the investor and the buyer. (Legal Basis: Point b, Clause 2, Article 27, Law on Real Estate Business 2023).

What proves completion of financial obligations?

Documents such as: Confirmation of financial obligations, Notice of land use levy/rent payment, Payment receipts, or Note of financial obligation determination transfer. (Legal Basis: Point c Clause 2 Article 14 and Clause 6 Article 24, Law on Real Estate Business 2023).

Conclusion

Clearly identifying What Investors Must Meet Before Trading Future-Formed Housing ensures market transparency and transaction safety. Clients should check the foundation acceptance report before investing. For in-depth dossier review, please contact Long Phan Consulting Company via Hotline  1900636389 for timely advice.

>>> See more: Documents informing that future housing is eligible for purchase and sale