Conclusion of HCMC People’s Committee helps settle “the jam” in issuing certificates of ownership for condo projects

Conclusion of HCMC People’s Committee helps settle “the jam” in issuing certificates of ownership for condo projects

The Office of HCMC People’s Committee has recently issued the Conclusion No. 855/TB-VP on the command of Vice Chairman of HCMC People’s Committee, Vo Van Hoan. Accordingly, the Conclusion provides guidelines for specifying residential land area, issuing certificates of land use right, ownership of houses and other assets attached to land (“Certificate”), and management responsibility for public works in condo construction projects with 02 highlighted contents as follows:

Categorizing projects to propose specific solutions

Condo construction projects in Ho Chi Minh City can be divided into 02 categories:

  • Type 1 contains condo projects which are isolated and have only some closed works. These projects’ entire areas are identified as residential land to collect land use fees and issue the Certificate according to laws.
  • Type 2 contains large projects with many public work items in addition to the construction area of apartment buildings. The land area of condo construction is specified according to the project’s approved land use structure to collect land use fees and issue the Certificate. This type can be divided into 03 groups:
    1. Group 1 is land for housing construction, that the land use fees must be collected 100% for the residential land area and issued the Certificate to the investor for the whole area which is fully paid. The State does not manage this area;
    2. Group 2 is land for construction of public works, the state must establish management procedures and then decide investment policies (including the leasing solutions); and
    3. Group 3 is land for construction of technical infrastructure works, which shall be handed over to the State for management after the construction completion. There shall be no land use fees and no Certificate issued for this area.
Methods of settling “the jam”

For projects which have been implemented previously, HCMC Department of Natural Resources and Environment (“DONRE”) is assigned to be in charged and coordinate with other Departments and related agencies to review and inspect the actual construction to categorize projects as mentioned above.

For newly started projects, advisory agencies must identify from the very beginning each type of land for construction of apartment buildings and other works for the basis to collect residential land use fees and issue the Certificate.

DONRE will codify relevant regulations and complete the proposal to submit to HCMC People’s Committee to unify the policy applicable to the whole city. The term to complete the report is 01 month.

To sum up, the conclusion document of the Office of HCMC People’s Committee has provided detailed guidelines to settle “the jam” in issuing the Certificate for condominium projects in the locality. In which, there is an order to focus on settling and solving the key projects which many households and investors being frustrated about. This can be the good news for investors of condominium projects in the HCMC in the upcoming time.

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