AN INTERNATIONAL GUIDE FOR BUYING AND SELLING REAL ESTATE BY INTERNATIONAL LAWYERS NETWORK

An international guide for buying and selling Real Estate. This guide offers an overview of legal aspects of buying and selling real estate in the requisite jurisdiction like Argentina, Bahamas, Brazil, Chile, Czech Republic, Germany, Greece, India, Latvia, Netherlands, Portugal, Russia, scotland, Turkey and United States.

The International Lawyers Network's Real Estate Specialty Group is pleased to announce the release of the second edition of their guide, "Buying & Selling Real Estate: An International Guide." https://lnkd.in/gZJtqnY

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.

HIERARCHY ON APPLYING LAW RELATED TO REAL ESTATE BUSINESS IN VIETNAM

The Civil Code has always been identified as the Code is located, as a background laws, common law private legal system, especially in the implementation of three functions: (i) provision of the most basic problems, the most common related to all areas of civic life; (ii) orientation for the development of legal documents regulate specific civil relations, and (iii) when the special law contains no provision for a civil relationship, the provisions of the Civil Code the adjustments are applied to.

Therefore, specialized laws relating to land, properties, and real estate transactions must also not be contrary to the fundamental principles of the Civil Code. The order of application shall be as follow:

1. Where the provision in such laws are regulated or not regulated, but contrary to the provisions of the Civil Code, provisions of Civil code shall be applied.

2. Where there is a difference between the provisions of the Civil Code and international treaties which the Socialist Republic of Vietnam is a member of the same issues, then apply the provisions of international treaties. Land and properties are unique products so no international treaties is eligible to regulate it.

3. Where the parties do not agree and the law does not specify the possible application, practices shall be applied. The Vietnam Civil Code 2015 stipulates: Practices mean rules of conduct obvious to define rights and obligations of persons in specific civil relations, forming and repeating in a long time, recognized and applying generally in a region, race, or a community or a field of civil. However, the practice is not contrary to the fundamental principles.

4. Where an issue rises under scope of civil code which it is neither provided for by law nor agreed upon by the parties nor, nor applied by practices, analogy of law (quasi transaction is a form of analogy of law) shall apply.