Transfer is an activity in the real estate business. Therefore, the principle of real estate project transfer must also comply with the principle of real estate business. At the same time, project transfer also has its own principles that make a difference to other real estate business activities.
Pursuant to the provisions of the Law on Real Estate Business 2014, the principles when transferring real estate investment projects include:
The principle of equality before the law. Real Estate Business Law 2014 in Clause 1, Article 4 has stated that the principle in real estate trading is “Equality before the law. This principle shows that the investor when participating in the transfer, but the project has an equal position before the law and is entitled to the right to be approved.
Firstly, the investor is equal in participating in the transfer, the opportunity between the investors participating in the transfer of the project is the same, without any bias, the investor in one condition. With the same environment, they will be able to participate in the project transfer. When the investors meet the specific conditions prescribed by the Law, they will all be able to participate in the project transfer.
Second, investors are equal in terms of rights and obligations. Investors have the same rights and obligations without discrimination. When transferring a project, other than enjoying equality before the law, all have the right to freely negotiate the base money respecting the rights and interests of the parties through the contract to express their will, within the scope of the contract permitted by law.
Third, the investor is equal in the performance of financial obligations when participating in the transfer, any investor must fulfill the financial obligation to the competent authority to collect into the state budget, not who has the right to evade this obligation.
Fourth, the investor is equal in the process of applying for approval from the competent authority to transfer the project, all investors must follow a certain order of transfer procedures.
Principles of openness and transparency. Clause 3, Article 4 of the Law on Real Estate Business 2014 clearly stipulates that “real estate business must be honest, public and transparent”. That is, when participating in real estate business activities, they must comply with the principle of publicity and transparency.
This principle is expressed as follows: Investors must disclose information about real estate when putting in the transfer of public real estate information, business entities must provide sufficient information to customers in the transactions. real estate transactions in general and in the transfer of floating projects in accordance with the provisions of Article 6 of the Law on Real Estate Business 2014.
The above-mentioned principles will be the premise for the transfer of real estate investment projects to be carried out in a healthy manner, in compliance with the provisions of law and fully ensuring the interests of the State, the interests of the State and investors and customers.
Due to the diversity and complexity of the real estate sector, it is essential to adhere to the principle of openness and transparency Currently, there are many underground transactions taking place or investors circumventing the law to illegally transfer measurements. publicity and transparency is an essential principle to solve this situation. Publicity and transparency in project transfer in order to protect the legitimate interests of organizations and individuals involved in real estate transactions, because publicized real estate information is limited to the lowest possible dispute occurs.
When the investor transfers the project, the investor is responsible for disclosing the information. Information about the transfer project is disclosed on the websites of enterprises, the Department of Construction and on the mass media so that everyone can access Information that needs to be disclosed when The transfer includes: project type, project location, area size, characteristics, properties, functions, quality, legal status of the project, transfer price of rights and interests of the parties and other information. but depending on the different type of project that the investor chooses.
Principles of legal compliance. Compliance with the law is the obligation of all Vietnamese citizens, in all social fields that are governed by the law, not just limited to the scope of the law on real estate investment project transfer contracts. Law always plays the role of regulating relations in society. When transferring a real estate project to be transferred, it must also comply with the provisions of the Law on Real Estate Business 2014 and other relevant laws and must comply with the provisions of the law on project transfer.
In addition, when transferring a project, it is necessary to comply with Japanese legal regulations on project transfer such as the object of the project being transferred, the order and procedures for the transfer to handle violations, the conditions of the transferred project investor.
The principle of project transfer in compliance with the law makes it easy for the state to manage the transfer, creating conditions for the parties involved in the project transfer to feel secure when protected by the law.
The principle that the transferee is entitled to inherit the rights and obligations when transferring a real estate business project. This principle shows that the transferee has the right to inherit all rights and obligations of the transferor and does not need to redo the project’s documents and procedures if there is no change in the content of the approval and investment decision.
Firstly, the transferee must follow the schedule of the project as well as the transferor, the transferee must ensure that the project is built on schedule to promptly hand over to the customer and not disrupt the project. project.
Secondly, the transferee needs to strictly comply with the commitments in the transfer contract to ensure that it does not change the original goal of the project, must comply with the implemented plan, build according to the schedule of the project. The project must fulfill its obligations to customers and related parties.
Third, the transferee is not required to redo the construction planning project dossier and the project’s construction permit if there is no change in the approved content of the investment policy or investment decision of the project: The transferee will inherit the files and papers of the transferor but must comply with the contract signed with the transferor, comply with the approved planning, architecture, and progress of the project. and investment content that the competent state agency allows for the transferor.
Principle that the transferor is responsible for notifying customers and related parties. Point b, Clause 1, Article 52 of the Law on Real Estate Business 2014 stipulates that the former investor is responsible for timely, complete, public notice and satisfactorily settlement of customers’ legitimate rights and interests and The responsibility for notifying customers belongs to the former investor. This notice must be made in writing to all customers and announced on the mass media 15 days before the project handover procedure.
This regulation is in place to protect the interests of customers. Normally, the assignee of a project can change its commitment to the client. Although the Law still stipulates that the transferee must comply with commitments, the current Law has not yet provided for the conditions for binding the responsibilities of the transferee investor to the customer as well as the regulations on violations against investors.
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