What is project land?
Project land is land plots within the investor's planning, with an infrastructure development plan. These projects must be licensed by competent authorities. These are often planning areas for the construction of residential areas, new urban areas, commercial centers or industrial parks.
Conditions for selling project land
According to the law, project land is only allowed to be opened for sale when it fully meets the following conditions
+ licensed land projects: Must have a detailed plan at a scale of 1/500 and be approved by a competent authority. The investor must have legal land use rights, no disputes and have been granted a land use right certificate.
+ Complete financial obligations: The investor must pay land use fees, taxes and related fees. Land cannot be sold when there are still debts of land use fees or other financial obligations to the State.
+ Infrastructure must be completed on schedule: Ensure technical infrastructure items such as roads, water supply and drainage, electricity... according to commitments.
+ Permitted by the Department of Construction to sell land: The investor must have a document confirming that he/she is eligible to open for sale.
+ Clear legal documents: Land must have a Certificate of Land Use Rights or be eligible for a red book for the buyer. Not subject to revocation, dispute, or unclear planning.
+ Selling to the right subjects and in the right form according to regulations: The purchase and sale must comply with the provisions of the law on real estate business.
How to check the legality before buying project land
To ensure the rights when buying project land, buyers need to carry out the following important legal checks:
1. Checking land use planning
Look up planning information: Buyers can go to the People's Committee of the district/county or the Department of Natural Resources and Environment where the project is located to request an extract of planning information
2. Checking the legality of the project
- Request the investor to provide legal documents including: Decision approving the 1/500 planning. Land use right certificate (project red book). Construction permit (if any). Investment approval document of the People's Committee of the province/city. Capital mobilization license if sold in the form of capital contribution.
- Verify investor information: Check the investor on the information portal of the Department of Planning and Investment. See the history of previous projects of investors to assess their reputation.
3. Checking infrastructure construction progress
Go directly to the project to check: whether the traffic roads, electricity, water, and drainage are complete or not; if there is no infrastructure but it is still for sale, it needs to be carefully considered. Check the license is eligible for sale.
4. Check the sales contract
- Determine the type of contract (land use rights transfer contract or capital contribution contract).
- Provisions on payment progress, land handover, and benefits when behind schedule.
- Clearly understand the tax and fee payment obligations of the buyer and seller.
- Read the terms of the contract violation penalty carefully.
- The land transfer contract must be notarized at the notary office.
- Carry out the registration procedure for transferring the name at the Land Registration Office.
