CONDITIONS APPLICABLE TO THE BUSINESS OF FUTURE BUILDING

Future Building means any buildings which is under construction and has not been permitted to put into operation. According to  Vietnam Real Estate Law 2014, a future buildings can be sold, leased or lease purchased prior the comletion of construction. However, such future buildings must meet the following conditions to be put on the markets:

1. Conditions on paperworks: the following documents must be avaiable prior putting the future building on the markets

- Documents on land, project documents or construction drawing approved by competent agencies;

- License for construction;

- Documents on certification of completion of technical infrastructure in equivalent to project progress; or it is required to gain the certification of completion of the foundation of the building regarding future apartment buildings or mix-used buildings.

2. Conditions on notifications to State Agency: The investor must send written notification to the  agency in charge of housing of province for the future building permitted to be put on the market.

3. Bank Guarantee condition: The investor’s financial obligations must be guaranteed by a competent commercial bank in case the investor fails to transfer the building on schedule as commitment to clients before the investor sell or lease purchase future buildings.

- The State bank of Vietnam shall issue the list of competent commercial banks which may give guarantee in the future real estate trading.

- The scope, requirements, content and guarantee fee shall be agreed by contracting parties and concluded in an agreement

- The investor shall send the copy of guarantee agreement to the buyer or lessee when the agreement on sale or lease purchase is signed.

- The guarantee agreement will stay unexpired until the building is transferred to the buyer or lessee.

- If the investor fails to transfer the building on schedule as committed and at the request of the buyer or lessee, the guarantor shall make a refund of the option fee and other payments to clients under agreement on housing sale or lease purchase and signed guarantee agreement.