Decree No. 02/2022/ND-CP was issued and applied from March 1.3.2022, XNUMX, all individuals and organizations dealing in real estate are required to meet a number of new regulatory conditions.
4 conditions to comply with when doing real estate business in 2022 #
Organizations and individuals that want to conduct real estate business from March 1.3.2022, 4 must ensure that all four conditions are met under the new decree.
Establish a business #
Organizations and individuals who want to do real estate business must first do the following:
- Establishing a business with a business line of real estate
- Comply with the provisions of the law on establishment of enterprises or cooperatives.
Must disclose information #
Disclose the following information:
- Information about the business: Business name, address, phone number, legal representative.
- Information on real estate (according to Clause 2, Article 6 of the Law on Real Estate Business 2014): information about the mortgage of real estate projects, houses, construction works to be put into business (if any), quantity, types of real estate products put into business; quantity and type of real estate sold, transferred, lease-purchased and the remaining quantity and types of products.
Address of information declaration:
- Website, headquarters of the Management Board for real estate investment and business projects.
- Real estate trading floor with business case through trading floor.
Note: In case the information has been made public but then there is a change, it must be updated immediately after the change.
Regulations on real estate that can be put into business #
Housing and construction works need:
- Register ownership of construction works, houses attached to land in the certificate of land use right. If there are houses and constructions in the real estate investment project, only a certificate of land use right is required.
- There is no dispute about the right to use, own land, construction works.
- The right to use is not subject to distraint for judgment enforcement.
Land that is permitted to trade in land use rights must have:
- There are red books and pink books.
- There is no dispute about land use rights.
- Not being distrained for judgment enforcement with land use rights.
- The land use right is still within the term of use.
The type of real estate to be formed in the future should have:
– Have land use right documents, project construction design documents and drawings approved by competent authorities at all levels, construction permits, corresponding acceptance documents according to the project schedule.
– If it is a building or apartment building with the purpose of living, there must be a record of acceptance and completion of the foundation.
– The investor must submit a written notice to the provincial housing management agency that the house is eligible for sale, lease-purchase before selling or leasing the house in the future.
Capital conditions #
According to the Ministry of Construction, Decree 02/2022/ND-CP replaces Decree 76/2015/ND-CP, which removes the legal capital requirement of 20 billion VND to ensure compliance with Point a, Clause 2, Article 75 of the Law on Investment. Investment 2020. In case the investor is selected as the investor of a real estate project, it is necessary to meet the capital requirements as prescribed by law.
- For projects with a scale of less than 20 hectares, the owner's equity must not be less than 20% of the total investment capital
- For projects with an area of over 20 hectares, the equity capital must not be lower than 15% of the total investment capital.
Based on the results of the most recent audited financial statement or the results of the independent audit report of the enterprise made in the year or the preceding year to determine the equity. If the enterprise is newly established, the owner's equity is determined according to the actual contributed charter capital.
Conditions for small-scale real estate business #
In case households, organizations and individuals sell, transfer, lease, lease-purchase real estate on a small and irregular scale, it is not required to meet the above 4 conditions. Specifically:
- In case of bankruptcy, dissolution or separation, the organization or agency sells houses or construction works or transfers land use rights in accordance with law.
- In case real estate is a public property that an organization or agency sells, transfers, leases to buy in accordance with law.
- Credit institutions, foreign bank branches, asset management companies of credit institutions (AMCs), asset management companies of Vietnamese credit institutions (VAMC) Sale of houses and works construction, transfer of land use rights, real estate projects being used as guarantees or mortgages for debt recovery in accordance with law.
- Organizations, households and individuals selling houses, construction works, transferring land use rights under decisions of competent state agencies when settling disputes, complaints and denunciations.
- Households, organizations and individuals that sell, lease, lease-purchase houses and construction works, and transfer land use rights under their lawful use rights.
- Households, organizations and individuals that sell, lease, lease-purchase or transfer real estate they invest in and construct but are not part of real estate construction investment projects for business in accordance with law.
4 mandatory conditions when transferring a sales contract #
The transfer of contracts for purchase, sale, and lease-purchase of future houses and existing houses and construction works is not applicable to the purchase and sale of lease-purchase or lease-purchase contracts for social housing.
The transfer of the sale and purchase contract must satisfy 4 conditions as prescribed.
- There is a contract of sale, purchase and lease purchase according to regulations. If the parties signed a contract before the effective date of this Decree, the signed contract must be signed.
- An area that has not yet submitted an application to a competent state agency for a certificate of land use rights, ownership of property and houses on land.
- Contract of sale, purchase, lease purchase of houses, construction works without disputes or complaints.
- To ensure the performance of obligations as prescribed by law, houses and construction works shall not be subject to distraint for mortgage, unless otherwise agreed by the mortgagee.
