What conditions do individuals doing real estate business need to meet?

The real estate business is quite an exciting activity in the market today. To do business effectively, in addition to the business strategy, it is necessary to meet the conditions of real estate business – this is a necessary factor. In the article below, we inform customers about the conditions that individuals need to have when doing real estate business.

What does real estate business include?

Real estate business includes activities of buying, selling, transferring, leasing, or subleasing real estate such as houses, construction works, and land use rights with technical infrastructure in the area of real estate projects. In addition, the real estate business also includes providing related services such as trading floors, brokerage, consulting, and real estate management.

Conditions for real estate to be put into business include existing houses and buildings

According to the provisions of Article 14 of the Law on Real Estate Business 2023, conditions for available houses and buildings to be put into business include:

• 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;
• 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, accepted and resolved; 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 made public.

Housing and construction works in real estate projects put into business by investors must also meet the following conditions:

• The project must meet the requirements specified in Article 11 of the Law on Real Estate Business 2023
• Have documents confirming that the house or construction project has been accepted and put into operation and use in accordance with the law on construction;
• The project investor has fulfilled its financial obligations regarding land, including land use fees, land rents, and taxes, fees, and charges related to land (if any) to the State in accordance with the law for land attached to houses and construction works put into business;
• Have a certificate of land use rights according to the provisions of land law for land attached to houses and construction works.

The construction floor area of ​​a construction project sold or leased to purchase by the investor must also ensure the following conditions:

• Construction works are created under investment projects according to the provisions of Law on Investment and Law on Construction; meet the conditions prescribed by law on property registration to be granted property ownership registration by a competent state agency to the buyer or hire-purchaser;
• The construction floor area in a construction project that is sold or leased must have a specific use function and be separated from other areas in the construction project according to a project approved by a competent authority accepted, approved and clearly shown in the design documents of the project or construction work so that the owner can independently manage and use the construction floor area in that construction work;
• Construction works and construction floor areas in construction works in the project must be designed properly and in accordance with specialized regulations and standards applicable to the type of construction work and its functions that construction process;
• The construction floor area of ​​a construction project that is sold or leased must determine the land use rights associated with that construction floor area in terms of form, land use term, and a land area of ​​use jointly or separately with other construction project owners and other land users according to the provisions of land law;
• The construction floor area of ​​the construction project must clearly identify financial obligations regarding land including land use fees, land rent and taxes, fees and charges related to land (if any). For the State, the seller, lease-purchase or buyer, lease-purchase of the construction floor area in the construction project is obliged to pay and record in the sale, lease-purchase contract;
• Construction works must be built on land with a form of land use that is allocated by the State with land use fees or leased with a one-time land rent for the entire lease period.

Conditions for individuals to do real estate business

Pursuant to Article 9 of the Law on Real Estate Business 2023, conditions for individuals doing real estate business include:

Must establish an enterprise according to the provisions of the law on enterprises or establish a cooperative or cooperative union according to the provisions of the law on cooperatives and have a real estate business; except in the following cases:

• Individuals doing small-scale real estate business do not have to establish a real estate business but must declare and pay taxes according to the provisions of the law.
• Individuals selling houses, construction projects, construction floor areas in construction projects for non-business purposes or selling, leasing, or lease-purchasing houses, construction projects, construction floor areas construction in small-scale construction projects.

In-depth real estate business conditions consulting service in Long Phan

At Long Phan, we provide in-depth legal consulting services on real estate business, including:

• Consulting on real estate business conditions for organizations and individuals
• Consulting on conditions for real estate to be put into business
• Consulting and guidance on document preparation and real estate business registration procedures
• Support drafting documents and contracts in the business process to achieve efficiency
• Consulting on risks in real estate business and orienting corrective measures for businesses and individuals
• Consulting on other issues that arise during the business process.

With a team of many years of experience, Long Phan brings the most comprehensive and effective solutions for your real estate business. Real estate business requires meeting certain conditions to ensure legality and safety in transactions. If customers need more specific advice on procedures, conditions, and related regulations, please contact Long Phan via the hotline: 0906735386.