Things to note when making payments for real estate purchases in the future

Buying and selling real estate in the future brings many investment opportunities, but also has potential risks if not careful attention is paid to the payment process. Payment must comply with legal regulations, ensuring transparency and safety for both parties. In addition, carefully checking the contract, committing payment schedule, and ensuring assets are guaranteed by the bank are necessary factors to limit risks.

Conditions for real estate to be formed in the future to be put into business

According to Article 24 of the Law on Real Estate Business 2023, in order for real estate that is housing or construction projects formed in the future to be put into business, the parties need to clearly note the following conditions that must be met:

1. Housing and construction projects have started construction according to the provisions of the Law on Construction.
2. Must have one of the following documents on land use rights:

• Decision on land allocation;
• Decision on land lease and contract on lease of land use rights according to the provisions of land law;
• Decision allowing change of land use purpose;
• Certificate of land use rights;
• Certificate of housing ownership and residential land use rights;
• Certificate of land use rights, ownership of houses and other assets attached to land;
• Other certificates of land use rights and ownership of assets attached to land according to the provisions of land law.

3. Must have the following documents:

• House construction permit, construction project and application dossier for construction permit in cases where a construction permit is required;
• Notice of commencement of construction of houses and construction works and design documents for construction of houses and construction works in cases where a construction permit is not required;
• Documents on acceptance of completed construction of technical infrastructure according to project progress; In case of an apartment building or mixed-use building with houses, there must be documents proving that the foundation construction has been accepted and completed.

4. Before selling or leasing future housing, the project investor must notify in writing the state management agency on real estate business at the provincial level about the housing’s eligibility to be sold, lease purchase.
5. Housing and construction works must be part of a real estate project that has been approved by a competent state agency according to the provisions of the law and within the content of the approved project has the purpose of investing in housing construction, construction works for sale, and lease purchase.
6. Meet the conditions specified in Points b, c, d, đ, Clause 1, Points a and c, Clause 2, Article 14 of the Law on Real Estate Business 2023.
7. Information about real estate and real estate projects put into business has been made public according to the provisions of Article 6 of the Law on Real Estate Business 2023.
8. The construction floor area of ​​a future construction project put into business in addition to meeting the conditions specified in Clauses 1, 2, 3, 4, 5, 6 and 7, Article 24 of the Law on Real Estate Business must also ensure the conditions specified in Clause 3, Article 14 of the Law on Real Estate Business 2023.

Some things to note when paying for real estate to be formed in the future

Pursuant to Article 25 of the Law on Real Estate Business 2023, regulations on payment in buying, selling, renting and purchasing houses and construction works formed in the future. Accordingly:

1. For payments in housing and construction projects, the construction floor area of ​​future construction projects will be made many times. Specifically:

• The first time must not exceed 30% of the contract value including the deposit, the next time must be consistent with the construction progress but the total must not exceed 70% of the contract value when the house, construction work, and construction floor area in the construction work have not been handed over to the buyer;
• In case the seller is an economic organization with foreign investment capital, the total amount must not exceed 50% of the contract value.

2. For payments for lease-purchase of houses, construction projects, and construction floor area in future construction projects:

• The first payment must not exceed 30% of the contract value including the deposit. The following payments must be consistent with the construction progress until the handover of the house, construction work, and construction floor area in the construction work to the lessee, but the total amount of advance payment to the lessor must not exceed 50% of the contract value for the lease purchase of the house, construction work, and construction floor area in the construction work;
• The remaining amount is calculated as rent to pay to the lessor for a certain period of time as agreed in the contract.

In cases where the buyer or lease-purchase party has not been granted a certificate of land use rights and ownership of assets attached to the land, the seller or lease-purchase party may not collect more than 95% of the contract value.

Real estate project investors are only allowed to collect a deposit of no more than 5% of the selling price, lease-purchase price of houses, construction works, and construction floor area.

Rights and obligations of parties in buying and selling real estate formed in the future

Rights and obligations of the seller:

1. The rights of the seller of houses, construction projects, and construction floor areas in future construction projects shall comply with the provisions of Clause 1, Article 18 of the Law on Real Estate Business 2023. Specifically:

• Require the buyer of the house, construction project, and construction floor area in the construction project to follow the deadline agreed in the contract;
• Require the buyer to pay in full according to the time and method agreed in the contract;
• Require the buyer to coordinate in carrying out purchase and sale procedures within the time limit agreed in the contract;
• Do not hand over houses, construction projects, or construction floor areas in construction projects without receiving full payment according to the payment agreement in the contract, unless the parties have otherwise agreed;
• Request the buyer to compensate for damage or repair damage caused by the buyer or hire-purchase’s fault;
• Other rights under contract.

2. Obligations of the seller of houses, construction works, and construction floor areas in future construction projects will be implemented according to the provisions of Points a, b, c, d, đ, h, i, k, l, m, n, o, p, q Clause 1 and Clause 2 Article 19 Law on Real Estate Business 2023.

Rights and obligations of the buyer:

1. The rights of buyers of houses, construction projects, and construction floor areas in future construction projects shall comply with the provisions of Clause 1 and Clause 2, Article 20 of the Law on Real Estate Business 2023. Specifically, Can:

• Require the seller to complete the procedures for buying and selling houses, construction projects, and the construction floor area in the construction project according to the deadline agreed in the contract;
• Require the seller to deliver the house, construction work, and construction floor area in the construction work on time, with quality and other conditions agreed in the contract; hand over the certificate of land use rights, ownership of assets attached to land according to the provisions of land law and related documents as agreed in the contract;
• Require the seller to purchase and warranty the house, construction work, and construction floor area in construction work according to agreements in the contract and provisions of the law;
• Request the seller to compensate for damage caused by the delivery of houses, construction works, construction floor area in construction works not on time, with quality and other commitments in the contract;
• Other rights under contract.

2. Obligations of the buyer, lease-purchaser of housing, construction works, and the construction floor area of ​​future construction projects shall comply with the provisions of Clauses 1, 2, 3 and 5, Article 21 of the Law on Real Estate Business 2023.

Real estate buying and selling consulting services formed in the future

To support customers in the process of buying and selling real estate in the future, Long Phan provides professional consulting and support services to ensure safe transactions and compliance with the law. Services at Long Phan include:

• Consulting on necessary conditions when real estate transactions are formed in the future, current legal regulations and paperwork.
• Drafting sales contracts and related legal documents, ensuring the legal rights of both parties.
• Project legal inspection includes verifying the legal status of the real estate project and the legality of related documents.
• Support negotiations and contract terms to ensure the best benefits for customers.
• Support for dispute resolution if problems arise during the transaction process, helping customers protect their rights.

Buying and selling real estate in the future brings many attractive opportunities for buyers. With extensive experience in the real estate field, Long Phan is ready to bring optimal solutions that protect maximum benefits for customers. Contact Long Phan immediately via the hotline: 0906735386 for detailed advice and support in conducting safe and effective transactions.