Conditions for putting existing construction projects into business

Putting existing construction projects into business is a common activity in the Vietnamese real estate market. The Law on Real Estate Business 2023 details the legal, technical and financial conditions that owners need to meet when carrying out this activity. This article will analyze specific requirements when putting existing construction projects into business. Please refer!

What is the available construction business?

Trading in existing construction works is the activity of buying, selling, leasing, and leasing construction works that have completed construction and have been accepted and put into use according to the provisions of construction law. According to the Law on Real Estate Business 2023, available construction works include construction works with functions serving the purposes of education, health, sports, culture, offices, commerce, services, and tourism. tourism, accommodation, industrial and construction works with mixed service functions.

Subjects participating in the business of existing construction works include individuals and organizations that are the legal owners of the works. They can directly conduct business activities or authorize real estate brokerage and management units. The target customers of this type of business are businesses that need to rent offices, business premises or individuals that want to buy housing.

Legal basis: Clause 4, Article 3, Clause 2, Article 5 of the Law on Real Estate Business 2023.

Conditions for putting existing construction projects into business

Putting existing construction projects into business must meet all of the following conditions:

• Have a Certificate of house ownership and land use rights or a Certificate of land use rights, ownership of houses and other assets attached to land or other certificates of land use rights and ownership rights own assets attached to land according to the provisions of land law, including recording ownership of houses, construction works or Certificate of house ownership or Certificate of ownership of construction works construction, except for houses, construction works, construction floor areas in construction works in real estate projects specified in Clauses 2 and 3, Article 14 of the Law on Real Estate Business 2023;
• Not in cases where there is a dispute over land use rights associated with houses or construction works, disputes over ownership of houses or construction works put into business are being notified by the competent authority, accept and resolve; In case of a dispute, it has been resolved by a competent authority with a legally effective judgment, decision or ruling;
• Not subject to distraint to ensure execution of judgment;
• Not subject to the law prohibiting transactions;
• Not in the case of being suspended or temporarily suspended from trading according to the provisions of law;
• Information has been disclosed according to the provisions of Article 6 of the Law on Real Estate Business 2023.

Legal basis: Clause 1, Article 14 of the Law on Real Estate Business 2023.

The process of putting existing construction projects into business

Prepare documents and evaluate business conditions

The first step in the process of putting existing construction projects into business is to prepare full legal documents and evaluate business conditions. The owner needs to collect and carefully review documents on project ownership, land use rights, construction permits, design documents and other related documents. This helps ensure the legality of the project and avoid risks of future disputes.

Next, it is necessary to conduct an assessment of the current status of the project to determine whether it meets the technical and safety conditions as prescribed. If items need to be repaired or upgraded, the owner needs to do so before putting them into business. At the same time, it is necessary to consider market factors such as location, surrounding amenities, and customer needs to determine a suitable business plan.

Owners should consult legal experts and real estate brokers for advice on legal issues, valuation and construction business strategies. This helps optimize business efficiency and minimize the risk of violating legal regulations.

Business registration procedures with authorities

After completing the preparation of documents and assessing conditions, the owner needs to carry out real estate business registration procedures with the authorities. For individuals, business registration is required at the tax authority. For organizations, it is necessary to add real estate business to the Business Registration Certificate at the Department of Planning and Investment.

Next, the owner needs to send project documents to the local Department of Construction to confirm eligibility for business. The Department of Construction will inspect and issue a document confirming that the project is eligible for business.

For some specific types of projects such as hotels, restaurants, and shopping centers, owners need to apply for additional specialized licenses from competent state management agencies. For example, tourist accommodation business license for hotels, food safety eligibility certificate for restaurants. Full compliance with specialized legal regulations will help business operations run smoothly and avoid administrative sanctions.

Information disclosure and project marketing

After completing the legal procedures, the owner needs to publish information about the project according to the provisions of the Law on Real Estate Business. Information required to be disclosed includes: project type, location, scale, technical specifications, attached equipment, legal status, selling price or rental price, payment method. Information disclosure helps ensure transparency in the real estate market.

Owners can choose appropriate marketing channels to promote the project such as websites, social networks, newspapers, and organizing project introduction events. Using the services of reputable real estate brokerage companies is also an effective way to reach potential customers. However, it should be noted that advertising and marketing information must be accurate, truthful, and not misleading to customers.

During the marketing process, owners should develop flexible sales and rental policies to attract customers. Incentives and promotions can be applied but must comply with legal regulations on promotions. At the same time, it is necessary to prepare a team of professional sales and consulting staff to support customers during the transaction process.

Sign the contract and hand over the project

When a customer agrees to the transaction, the owner will sign a contract to buy, sell, or lease the project. The contract must be drawn up according to the form prescribed by the Ministry of Construction, fully showing basic contents such as characteristics of real estate, price, payment method, time of property delivery, rights and obligations. of the parties. The contract needs to be notarized or authenticated according to the provisions of law.

The owner is responsible for handing over the project to the customer on time and in the condition agreed upon in the contract. When handing over, it is necessary to make a detailed handover record, fully recording the current status of the project and accompanying equipment. At the same time, the owner must hand over to the customer all legal and technical documents of the project to serve future management and use.

After completing the handover, the owner needs to assist customers in carrying out procedures to change ownership and issue a new Certificate of Ownership (if it is a sale transaction). For rental transactions, it is necessary to guide customers to register for temporary residence or temporary absence according to the provisions of law on residence. Supporting customers in administrative procedures will contribute to enhancing the owner’s reputation in the market.

Consulting services on construction business are available at Long Phan

Long Phan provides comprehensive consulting services on putting existing construction projects into business, helping owners comply with legal regulations and optimize business efficiency. Long Phan’s team of experts has extensive experience in the field of real estate, and a deep understanding of real estate business laws and related regulations. Long Phan’s consulting services include:

• Review project legal documents, evaluate the completeness and validity of documents;
• Consulting on conditions for putting projects into business according to the Law on Real Estate Business 2023;
• Support in carrying out business registration procedures and licensing with authorities;
• Consulting on building business strategies, pricing and project marketing plans;
• Drafting sales and rental contracts in accordance with the law;
• Consulting to resolve problems that arise during the business process.

To be able to put existing construction works into business such as housing and construction projects, related entities must meet a series of conditions according to the provisions of Vietnamese law. With consulting experience for many large real estate projects, Long Phan provides customers with high quality services, helping the business process of existing construction projects take place smoothly and safely. Please contact Long Phan’s hotline 0906735386 for detailed advice.