Payment progress in buying and selling real estate formed in the future

It is no longer strange for investors to conduct transactions to buy and sell real estate to be formed to raise capital. However, performing such real estate transactions carries many potential customer risks, especially in payment issues. So how will payments be made when purchasing real estate formed in the future?

Real estate business conditions will form in the future

Conditions of real estate formed in the future put into business according to Article 55 of the Law on Real Estate Business 2014 (Law on Real Estate Business 2014) are as follows:

– Have documents on land use rights, project documents, construction drawing designs approved by competent authorities, Construction Permit in cases where a Construction Permit is required, documents on acceptance Completion of construction of corresponding technical infrastructure according to project progress;

In the case of an apartment building or mixed-use building with residential purposes formed in the future, there must be a record of acceptance of the completed foundation of that building.

– Before selling or leasing future housing, the investor must notify the provincial housing management agency in writing that the housing is eligible to be sold or leased.

Within 15 days from receipt of the notice, the provincial housing management agency is responsible for responding in writing to the investor regarding housing eligible for sale or lease-purchase; In case of ineligibility, the reason must be clearly stated.

Payment progress in real estate purchases and sales formed in the future

The purchase and sale of real estate formed in the future takes place over a long period, so payments are made in many installments. To ensure safety and risk prevention for buyers of real estate formed in the future, Article 57 of the Law on Real Estate Sales 2014 specifically stipulates payment in the purchase and sale of real estate formed in the future. Accordingly:

– Payment in the purchase and sale of real estate formed in the future is regulated to be made in many times, the first time must not exceed 30% of the contract value, subsequent times must be consistent with the real estate construction progress but The total amount must not exceed 70% of the contract value before handing over the house or construction project to the customer; In case the seller or lessor is a foreign-invested enterprise, the total amount must not exceed 50% of the contract value.

– In case the buyer or lessor has not been granted a Certificate of land use rights, ownership of housing and other assets attached to the land, the seller or lessor must not collect more than 95% of the contract value.

The remaining value of the contract is paid when the competent state agency has issued a Certificate of land use rights, ownership of houses and other assets attached to land to the buyer or lessee.

In addition, the investor must use the customer’s advance payment for the committed purpose.

According to the above regulations, payment for houses built in the future can be made in many installments, the first payment must not exceed 30% of the contract value. In case the house has not yet been handed over, the payment amount must not exceed 70% of the value contract. In case the Certificate of land use rights, ownership of houses and other assets attached to the land has not been issued, the seller is not allowed to collect more than 95% of the contract value. The regulation requiring payment in installments is reasonable and does not violate the parties’ right to self-determination in the contract because the buyer’s payment obligation in this relationship arises when the object of sale has not yet been physically formed. In fact, if a one-time payment is made, the problem of misappropriating the investor’s capital can easily arise.

Thus, the law also has regulations on payments for real estate purchases formed in the future in many installments to ensure safety for customers and avoid profiteering by investors.

Recommendations of LS Law Firm

Above are the basic contents about payment progress in buying and selling real estate 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.

Note: The above article is for reference only, any copying or use of the article as personal evidence in any case or matter is considered unauthorized./.