Conditions for investors to enter into contracts for sale of houses to be formed in the future

Real estate business transactions formed in the future are significant and popular transactions in real estate business transactions because they have capital advantages for investors and customers. To ensure the legal rights of future home buyers as customers of real estate businesses, what requirements does the current Real Estate Business Law have for homeowners Invest before opening for sale?

Concept of asset purchase and sale contract formed in the future

In Article 430 of the 2015 Civil Code, the definition of a property purchase and sale contract is given: A property purchase and sale contract is an agreement between the parties, whereby the seller transfers ownership of the property to the buyer and the buyer pay the seller. In the spirit of the law on asset purchase and sale contracts, it can be understood that a contract for the purchase and sale of assets formed in the future is an agreement between the parties in writing on the purchase and sale of assets formed in the future aims to make a profit. Accordingly, the seller will hand over the assets and ownership of the assets to the buyer and the buyer must pay for the purchase of future assets to the seller according to the content agreed upon by both parties in accordance with regulations. under the law.

Housing formed in the future can only become the subject of a housing purchase contract when it satisfies the following conditions: (i) There are documents on land use rights, project documents, and blueprints construction drawings approved by competent authorities, construction permit in cases where a construction permit is required, documents on acceptance of completion of corresponding technical infrastructure construction according to project schedule; (ii) In case of an apartment building or a mixed-use building with residential purposes formed in the future, there must be a record of acceptance of the completed foundation of that building (according to Clause 1, Article 55 of the Real estate business law 2014).

Regarding the conditions for investors to enter into contracts to sell houses formed in the future

Pursuant to Point b, Clause 2, Article 19 of Decree No. 99/2015/ND-CP, within 15 days from the date of receiving the investor’s application, the Department of Construction must check the dossier; If the application has enough documents as prescribed in this Point, the Department of Construction must send a written notice to the investor to notify the investor that the house is eligible for sale; If the application does not have all the required documents, there must be a document stating the reason. In case the investor has submitted the dossier but the deadline specified in this point has passed but the Department of Construction does not have a written notice and the house is eligible to be sold, the investor has the right to sign a house purchase and sale contract to be formed in the future but must be responsible for the sale of this house; The Department of Construction must be responsible for whether or not there is a written notice of the house being eligible to be sold after receiving the investor’s application.

Also regulating the conditions of investors, Clause 2, Article 55 of the Law on Real Estate Business 2014 stipulates that the provincial housing management agency is responsible for responding in writing to the investor about adequate housing conditions for sale within 15 days; In case of ineligibility, the reason must be clearly stated. It can be seen that the Law on Real Estate Business empowers state agencies to evaluate the conditions of investors when participating in contracts to buy and sell assets formed in the future, to limit risks in practice for home buyers. However, according to the provisions of Decree No. 99/2015/ND-CP, it gives the investor the right to sell the house still when the Department of Construction does not have a written response and must take responsibility. This regulation shows that the investor’s responsibility mechanism is still influenced by many factors, causing many great risks for home buyers.

From the above regulations, it can be seen that the Department of Construction is the competent authority to decide whether the housing project investor is eligible to sell houses formed in the future or not. The decision of the Department of Construction is based on the conditions for the project specified in Clause 1, Article 55 of the Law on Real Estate Sales 2014. Therefore, the investor must meet the conditions for selling houses formed in the future to protect profits legitimate interests of customers, while also being flexible enough for investors to mobilize capital in case the Department of Construction does not respond within the time limit prescribed by law.

Recommendations of LS Law Firm

Above are the basic contents of the conditions for investors to enter into contracts to sell houses formed in the future based on the provisions of law at the time of writing. If you need advice on the above issue or are interested in other legal services, please contact LS Law Firm immediately via Email: lslawfirm2014@gmail.com for timely support.

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