Learn about the legality of apartment projects in Vietnam

For these types of projects, current law has specified conditions for investors to be allowed to sell future housing or sign capital mobilization contracts with buyers, specifically as follows:

Article 39, Housing Law 2005 stipulates that leasing and buying and selling commercial housing is carried out through installment payments, deferred payments or one-time payments. In case the housing design has been approved and the foundation has been completed, the investor mobilizes capital from advances from people wishing to rent or buy housing. Accordingly, the total amount mobilized before handing over the house to the customer must not exceed 70% of the value of the house stated in the contract.

According to Point dd, Clause 3, Article 9, Decree No. 71/2010/ND-CP dated June 23, 2010, investors are only allowed to sign contracts to buy and sell houses to be formed in the future after having a copy of the contract. The housing technical design has been approved, the foundation has been completed and the purchase and sale procedures through the real estate trading floor have been completed in accordance with regulations on real estate business in the law and have been notified to the Department of Construction. Build where there is a housing construction project 15 days in advance.

Specifically, the completion of the construction of the foundation of the house (including residential buildings with mixed use purposes) specified in this point is determined as the stage of completion of the foundation bracing (including the treatment part). ground level (if any) or to the floor height of the lowest floor of this housing project and is technically accepted in accordance with the provisions of construction law;

Point b, Clause 3, Article 9, Decree No. 71/2010/ND-CP dated June 23, 2010 stipulates as follows: Investors are only allowed to sign contracts, investment cooperation documents or contracts, Capital contribution document with an individual to invest in construction and division of housing after the housing development project has been approved, the housing construction has started and the Department of Construction has been notified. where there is a housing construction project 15 days in advance.

At the same time, according to the provisions of Clause 4, Article 9, Decree No. 71/2010/ND-CP dated June 23, 2010, cases of capital mobilization that do not meet all conditions and do not comply with the prescribed forms defined in this article, the signed contract has no legal value. In this case, the party raising capital will be handled in accordance with current regulations.

On that basis, when buying apartments in projects, you should check to see if the project is eligible for the investor to sign a capital mobilization contract or investment cooperation contract. or whether or not there are enough conditions to sign a contract to buy and sell houses to be formed in the future according to the above regulations.