Information about buying a condominium that will be lost after 50 years is causing confusion for many people. However, according to the law, this is very unlikely.
Many real estate experts claim that the loss of the apartment after buying 50 years is being pushed too far from nature. All legal elements when implementing apartment projects are guaranteed for long-term home owners, although the duration of land lease of the investor is limited.
The 50-year-old home loss information comes from the fact that customers reflect on a home purchase contract of a project in Ho Chi Minh City. In this contract, the investor provided information on the project was allocated 50 years by the state, while being granted a certificate of ownership.
The misunderstanding of the legal nature of the customer makes the public panic when spending billions to own the apartment.
Buyers of condominiums are still entitled to benefits when the project expires.
Le Hoang Chau, Chairman of the HCM City Real Estate Association, explained that investors were allocated land for 50 years as the time for implementing the project. When moving to residential land, the area of land is under the common use rights of the owners of apartments, granted pink book for long-term use.
This regulation is intended to prevent the investor from receiving land for too long, not yet implementing the project, but still be used for a long time, thus wasting the land fund and failing to promote the added value of the land.
Mr. Phan Cong Chanh, a real estate expert, noted that ordinary people when buying a home, you should seek legal advice to avoid misunderstandings.
“Even investors need to have sufficient information to help them understand their rights,” Chanh said, “which can mislead customers about the nature of the matter.”
Clause 1, Article 99 of the Housing Law of 2014 states: ” The term of use of condominiums shall be determined on the basis of the construction work level and quality inspection conclusions of the provincial-level house management of localities where exists the condominiums.
The way of calculating duration according to the level of construction works is clearly defined, with four levels for condominiums.
Specifically, level 4 works (1 simple structure layer) has a useful life of less than 20 years. Level 3 buildings (2-7 floors) have a useful life of from 20 years to less than 50 years. Level 2 (8-20 floors) has a useful life of 50 years to 100 years. Level 1 works (over 20 stories) and special projects have a useful life of more than 100 years.
According to Mr.Le Hoang Chau, the works do not exist eternally without repairs.
If 50 years later the apartment degradation, the homeowners have the right to spend money on upgrades, renovations. If conditions do not work, the same will apply as the plan to relocate and renovate the old apartment today.
“The option offered also guarantees the property rights of home buyers, and ensure the planning of that period,” Mr.Chau emphasized.
Paying land still property
Experts emphasize that buyers of condominiums are completely assured of their rights when owning apartments.
According to lawyer Pham Dinh Bac (HCMC Bar Association), the purchase of apartments and possession of clear legal documents such as pink book means that the value of the property is guaranteed in the long run. Although the term of the lease or use of the apartment has expired, the functional units or investors will convert the value of a property (compensation, resettlement …) reasonable for the owner.
The Housing Act 2014 stipulates that owners of demolished condominiums will be rehabilitated and rebuilt.
The arrangement of resettlement by housing is done through contracts of lease, lease, purchase and sale of houses signed between the persons arranged resettlement and the units assigned to resettlement if the State invest. Or the buyer signed with the project investor if built by the business enterprise.
In cases where the owner needs to be relocated on-the-spot, he/she will be allowed to arrange a new dwelling with an area equal to or larger than the area of the former dwelling house.
Where the State invests in renovating or rebuilding condominiums, project investors shall have to arrange for temporary accommodation or pay money so that the displaced persons can arrange their accommodation for themselves during the renovation and construction period.
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In cases where enterprises and owners agree to invest in renovating and rebuilding condominiums, the parties shall agree on the temporary residence of their owners during the renovation or rebuilding.
When the state invests in renovating and rebuilding condominiums, there is a difference in value between the old and new dwellings, the payment of the difference value shall be made according to the resettlement arrangement already approved.
If enterprises and owners agree to invest in renovating or rebuilding condominiums, the difference shall be paid according to the agreement between the parties.
According to Mr.Pham Dinh Bac (lawyer) said: “In all cases apartment buyers can be proactive in their interests. People can choose to resettle in place, resettle in that ward or self-sufficient. All costs involved are guaranteed on a market and agreement basis. “
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