In recent years, people’s demands for housing are increasing rapidly, especially for condos, because of their modernity, convenience, and reasonable price. However, many investors take advantage of buyers’ lack of understanding of real estate law and legal loopholes to raise capital and put housing up for sale when they are not eligible to do so. This behavior is considered illegal, leading to the result that the buyers become “broke”, both losing money and having no house to live in.
Therefore, in the article below, PL & Partners Law Firm would like to present to readers the conditions for investors to put condos up for sale according to applicable laws, please read for reference.
1. WHAT IS A CONDO?
The concept of a condominium or condo is specified in Article 3.3 of the Law on Housing 2014, specifically:
A condominium is housing with 2 floors or more, consists of many condos, with common walkways and stairs, having areas with private ownership, shared ownership and a system of infrastructure works for common use of households, individuals, and organizations, including condos for residential purposes only and mix-used condos for both residential and business purposes.
2. CONDITIONS FOR INVESTORS TO PUT CONDO UP FOR SALE?
Pursuant to the Law on Housing 2014, the Law on Real Estate Business 2014, and Decree 99/2015/ND-CP, the investor is only allowed to sell condos when fully meeting the following conditions:
- Having papers on land use rights, project dossiers, construction drawing designs approved by competent authorities;
- Having a Construction Permit if required;
- Having documents on the acceptance of the completion of the technical infrastructure corresponding to the project schedule;
- Having acceptance minutes on the completion of the foundation of that building.
- Having a writing notice sent to the provincial housing authority which states that the condo is eligible to be sold.
- Having documents proving that an adequate commercial bank has guaranteed the investor’s financial obligations to the buyer when the investor fails to hand over the housing on time as committed to the buyer.
Thus, only when the investors meet the above conditions, the condos are allowed to be up for sale. Therefore, the buyers are entitled to request the investors to provide the above-mentioned documents to know whether the condos they intend to buy are eligible for sale or not. Besides, in order to be allowed to purchase and sell condos, both the seller and the buyer must meet the conditions for being allowed to trade housing as prescribed by laws.
PL AND PARTNERS LAW FIRM
Headquarters: 46th Floor, Bitexco Financial Tower, No. 2 Hai Trieu, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Office: M Floor, Dai Thanh Binh Building, 911 Nguyen Trai, Ward 14, District 5, Ho Chi Minh City, Vietnam
The article is based on the current legal regulations at the time of writing, and it may no longer be valid or relevant at the time you are reading it due to changes of the law. The article, therefore, is seen as reference only.