Currently, the demand for buying commercial condominiums is increasing day by day. Followed by the increase are risks in real estate law that occur frequently. Then what should people pay attention to when buying commercial condominiums?
To learn more about this issue, let’s find out in the following article of PL & Partners Law Firm.
1. LEARN INFORMATION ABOUT THE INVESTOR / SELLER AND THE PROJECT WHEN BUYING COMMERCIAL CONDOMINIUMS.
For purchasers, this is the first and the most important job because, when entering into a contract, the investor is responsible for the legality, quality and problems with the condominium. Therefore, the buyer needs to carefully learn the necessary information about the investor such as:
- Investment registration certificate, Enterprise registration certificate, the planning, project drawings and related legal papers;
- Whether the project is truly a commercial condominium project or not;
- Capacity, prestige, partners of the investor;
- Disputes of the investor against purchasers, residents, etc. as well as how to resolve such disputes;
- Operating, financial or, taxes obligations;
- Has there been any violation of the law;
2. NOTE THE PAYMENT PROGRESS FOR OFF-PLAN CONDOMINIUMS.
Unlike existing condominiums, the law allows sellers and purchasers to agree on the payment schedule for off-plan condominiums. With the current real estate law, the law has a limit on the maximum amount of money collected according to the project progress to avoid risks for purchasers.
Article 57 of the Law on Real Estate Business 2014 specified that:
Therefore, when buying an off-plan condominium, the buyer needs to negotiate the payment schedule in the contract, avoid signing the forms prepared by the seller having a payment schedule of more than 95% of the value of the condo without being granted a Certificate and handed over the condo.
3. NOTE THE OWNERSHIP TERM WHEN BUYING COMMERCIAL CONDOMINIUMS.
Purchasers need to distinguish between the term for using the condos and the term for using the land of the condominium building.
Pursuant to Article 126.3 of the Land Law 2013, for housing projects for sale, or for both sale and lease, the term for the investor to use the allocated land is determined according to the term of the project. For purchasers of condos attached to land use rights in those projects, they will be able to use the land stably for a long time, not just limited to 50 years.
The term of using the condos is determined based on the grade of construction works and the conclusions on quality inspection of the provincial-level land administration agencies. This term is usually 50 years and the condo can continue to be used based on the inspection result.
4. REVIEW THE COMMERCIAL CONDOMINIUM SELL AND PURCHASE CONTRACT.
The commercial condominium sale and purchase contract is subject to template contract registration. The investor must register the template of the contract with the competent authorities and obtain their approval. This requirement is aimed to protect the interests and limit risks for the purchaser.
The contract is an essential factor as it will bind the seller’s responsibility, protect the interests of the purchaser. Therefore, if not carefully considered, the purchaser may suffer unforeseen losses.
Thus, before signing the contract, the purchaser needs to consider some basic contents as follows:
- The conditions for the condo to be sold are met or not;
- The template of the contract has been registered or not;
- Is your target condo a commercial condominium or not;
- The price, conditions and schedule for payment, discounts, promotions, etc.
- The quality of the construction work, the time of handover, the attached appendix should fully describe the completion level of the condo and the accompanying utilities.
- Rights and obligations of the parties, parking space, management fees, public utilities, electronic services, warranty, repair rights, etc.
5. NOTE THE TIME FOR HANDOVER WHEN BUYING COMMERCIAL CONDOMINIUMS.
Before the handover, the purchaser needs to check the actual status of the condo building carefully to avoid disadvantages later on. In case there is any problem or error, write it in the handover record and request for repair as in many cases, there were unexpected cases occurred such as the interior system missing or not matching the description, cracked walls, damaged drainage system, lack of fire prevention equipment, weak wifi connection, poor electricity and water system, out of order elevators, etc. In addition, when buying a commercial condominium, the purchaser needs to pay attention to the fees to ensure the use of the condo.
Above is the information about real estate law when buying a commercial condominium people should pay attention to.
If you need further legal assistance, please contact us via:
PL AND PARTNERS LAW FIRM
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