On 26 March 2021, the Government issued Decree No. 30/2021/ND-CP to amend and supplement some articles of Decree No. 99/2015/ND-CP detailing regulations and guiding implementation of some article of Law on Housing 2014. Of which, some notable points are:
I. Amendment, supplement to regulations relating to the house ownership of foreign entities
About identifying areas in which foreign entities may own houses
- According to the new regulation, the Ministry of National Defense and the Ministry of Public Security have the responsibility to specify the areas having national defense and security requirements in each province and send a written notification to the Provincial People’s Committee as the basis for directing the Department of Construction to compile a list of local commercial housing construction projects in which houses may be owned by foreign entities.
About the extension of time limit for foreign entities’ ownership of houses in Vietnam
- When requesting extension of time limit for owning houses, foreign entities may choose to submit copies and present the originals for comparison or to submit notarized copies of document required by the law.
II. Amendment of the approval of investment policies in housing construction projects
- The approval of investment policies in housing construction projects must comply with the investment law.
- During the appraisal process to approve investment policies for housing construction project, the Ministry of Planning and Investment consults with the Ministry of Construction if the project under the delegated authority of the Prime Minister to grant investment policy decision; The investment registration authority consults with the Department of Construction if the project under the delegated authority of the Provincial People’s Committee or the zones and Management Board of the industrial parks, export – processing zones, hi-tech zone, or the economic zones to grant investment policy decision.
III. Amendments to investor selection in commercial housing construction projects, residential housing projects
- An investor wins a bid or an auction of land use rights to execute the housing construction project, in case of meeting all conditions to act as project investor under the Law on Housing, Law on Land, and Law on real estate business, this investor can act as an investor in the commercial housing project;
- Investors who have the land use rights and meets all conditions as project investors under the Law on Housing, Law on Land and Law on real estate business, and other relevant laws, the investor is identifiable as an investor in the commercial housing project in the decision of approval the investment policy:
- Having the legal right to use residential land;
- Having legal rights to use residential land and other types of land allowed by a competent authority to be repurposed as residential land;
- Receiving transfer of residential land use rights in accordance with the law on land for commercial housing construction.
- In case of having more than one investor of the commercial housing project get the approval decisions on investment policies in accordance with the investment law, these investors may authorize a qualified investor or establish an enterprise, cooperative that fully meet the prescribed conditions to carry out the procedures for recognition of investors in housing construction projects. The authorization to be the investor in a housing construction project is implemented via an authorization contract, which specifies the rights and responsibilities of the parties.
- The profit distribution agreement between the parties is in accordance with Decree No. 99/2015/ND-CP. In case the parties have an agreement on the distribution of profits by the housing product, the party which receives the distributed product (not the investor) shall only sign a house purchase, sale, or lease purchase contract with the customer after obtaining a Certificate for that house.
IV. Amendments related to procedures for investment in housing construction and real estate business
For the application procedure for the transfer of all or a part of a project, that the Provincial People’s Committee or the District People’s Committee or the Prime Minister decided, when submitting the transfer request, the investor may choose to submit copies and present the originals for comparison or to submit notarized or authenticated copies when performing these procedures.
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