Offering real estate to be formed in the future is a popular form of business in the Vietnamese real estate market. The latest Law on Real Estate Business has detailed conditions for investors to be allowed to offer this type of real estate for sale. This article will analyze the legal, financial requirements and commitments that investors need to meet when offering real estate to be formed in the future according to new regulations.

Characteristics of real estate formed in the future

Real estate formed in the future is a specific type of asset in the real estate business. Housing and construction projects formed in the future are defined as assets that are in the process of investment and construction or have not been accepted and put into use according to the provisions of construction law.

The outstanding feature of this type of real estate is that it does not actually exist at the time of transaction. The investor offers the project through design drawings, 3D perspective and commitment to construction progress. Buyers make transactions based on confidence in the investor’s reputation and capacity.

Popular types of real estate formed in the future on the market include apartments, townhouses, villas, and shophouses in ongoing projects. This is a segment that attracts many investors due to the potential for price increases when the project is completed.

Legal basis: Clause 5, Article 3 of the Law on Real Estate Business 2023.

Conditions for offering real estate to be formed in the future according to the new law

Legal requirements and project licenses

The Law on Real Estate Business 2023 strictly regulates the legal conditions for investors to be allowed to offer for sale real estate formed in the future. The project must have a detailed planning approval decision of 1/500 or a construction planning permit. The investor needs to complete procedures for land allocation, land lease or change of land use purpose.

Construction permit is a mandatory requirement for projects that require a permit. In case the project has investment phases, the investor is only allowed to sell real estate in the phase that has a construction permit. Construction drawing design documents must be evaluated and approved by a competent authority.

The investor needs to disclose information about the project according to regulations, including detailed planning, architectural plans, list of construction materials and expected progress. This information must be publicly posted at the headquarters of the Project Management Board and the real estate trading floor.

Financial conditions and investor capacity

The financial capacity of the investor is an important factor determining the ability to implement the project. The new law requires investors to have equity not less than 20% of the total investment for projects with land use scale of less than 20 hectares, 15% for projects of 20 hectares or more.

The investor needs to prove the legal source of capital mobilized to implement the project. Credit loans and corporate bond issuance must comply with the provisions of law on credit and securities. Mobilizing capital from customers can only be done after completing the foundation of the project.

Project management capacity is also a criterion for evaluating investors. Enterprises need to have a management apparatus and personnel with appropriate expertise. Previous experience implementing similar projects will be an advantage when applying for approval of investment policies for new projects.

Regulations on guarantees and handover commitments

A bank guarantee is a measure to protect the interests of future real estate buyers. The new law stipulates that investors must have a guarantee from a credit institution for the completion and handover of housing and construction works according to the schedule committed to customers.

The purchase contract must clearly state the investor’s commitment to the construction progress and real estate handover deadline. In case of delayed handover, the investor must compensate the customer for damage according to the agreement in the contract or according to the provisions of law.

The investor is responsible for warranting the project according to the provisions of construction law. The minimum warranty period is 24 months for apartments and 36 months for individual houses. Commitments regarding the quality of the project and materials used must be clearly stated in the sales contract.

Legal basis: Article 24 of the Law on Real Estate Business 2023.

Note when buying and selling real estate formed in the future

When buying and selling real estate in the future, there are many important factors to keep in mind to ensure benefits and minimize risks. Below are the main notes that customers should consider:

• Check the legality of the project: Check if the project has a legal construction permit. This license needs to be issued by a competent state agency and made public.
• Make sure that the investor has a legal land use right certificate and that the project is not in dispute.
• Read the sales contract carefully, paying attention to the terms of price, payment method, delivery time, and the rights and obligations of the parties.
• Research the investor’s reputation, check their previous projects and feedback from customers.
• Assess potential risks such as schedule delays, poor construction quality, or legal disputes.
• Consult a lawyer or legal expert to ensure all legal procedures are carried out properly.

Buying and selling real estate formed in the future requires caution and careful preparation. Therefore, customers need to consider these factors to minimize risks and protect their rights during real estate transactions.

Consulting services on offering real estate to be formed in the future

Long Phan provides professional consulting services on offering real estate to be formed in the future. The company’s team of experienced experts supports investors and customers throughout the entire transaction process. Long Phan provides optimal solutions, ensuring compliance with legal regulations and protecting the rights of all parties.

Long Phan’s consulting services include reviewing project legal documents, supporting procedures for approval of investment policies and construction permits. The company also specializes in drafting sales contracts, terms in accordance with the Law on Real Estate Business 2023. With a deep understanding of real estate law, Long Phan is ready to answer all customers’ questions. .

Long Phan supports investors in developing effective capital mobilization plans, meeting financial capacity requirements according to new regulations. With reputation and long-term experience in the real estate field, Long Phan is a reliable partner for all real estate transactions formed in the future.

Offering real estate to be formed in the future is a complex business activity, requiring compliance with many legal regulations. Customers need to carefully study project information, investor capacity and potential risks before deciding to transact. For detailed advice on conditions for offering real estate in the future, please contact Long Phan via hotline. 0906735386 Get support from experts in this field.