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HoREA opposed to propose land use regime for condotel, officetel of Ministry of Natural Resources and Environment

Unfinished legal is the weakness of condotel

HoREA suggested that both options for multi-functional use land use schemes combined with functionalities such as officetel, condotel, serviced apartment, shophouse, resort … of the Ministry of Natural Resources and Environment inadequate, unreasonable

Two solutions of the Ministry of Natural Resources and Environment

The Ministry of Natural Resources and Environment has recently submitted to the Government amendments to some articles of the Land Law 2013, including many contents clarifying the legality of condotel and officetel.

Accordingly, the Ministry raised two solutions. Solution 1 is the same as that defined in the Land Law as land for commercial services. The land use duration of the project is 50-70 years as regulated. Investors may transfer land use rights during the operation duration of projects and the franchisees shall be granted certificates of land use right and house and other land-attached assets for the duration of the projects. .

Solution 2 is that if these works are functional, they are defined as residential land and the land use duration of the project owner is 50-70 years as prescribed. Investors may transfer their land use rights during the operation duration of the projects and the transferees shall be granted the land use right certificates, house ownership certificates and other land-attached assets for stable and long-term purposes.

Ministry of Natural Resources and Environment selects plans for condotel buyers to receive long-term land use certificates
Ministry of Natural Resources and Environment selects plans for condotel buyers to receive long-term land use certificates

The Ministry of Natural Resources and Environment (MONRE) has chosen option 2 because it specifies that the condotel and officetel combination of land use rules will break the standard for standard types of flats to stay or to do business office work.

However, this solution will solve problems arising in practice.

Both solutions are unreasonable

Evaluation of these two solutions by the Ministry of Natural Resources and Environment, HoREA said that “both solutions mentioned above are inadequate and unreasonable”.

Specifically, solution 1 essentially retains the current provisions of the Land Law 2013, because Decree 43/2014 / ND-CP and Government Decree 01/2017 / ND-CP solved the problem. Grant of land use certificates (red book) for these products.

Even if the officetel is located in the same apartment building as a normal apartment, it has been granted a permanent land use right certificate.

“Solution 1 failed to address the reality of the need to set up a state management mechanism for land use rights in an effective and transparent manner, and not to lose budget revenues. The state of the new type of real estate is officetel, serviced apartment, shophouse; condotel, townhouse, villa in resort “, HoREA emphasized.

For Solution 2, HoREA found that this solution has not been standardized because if officetel, serviced apartment, shophouse; condotel, townhouse, villa in the resort “function to stay is defined as residential land” is not quite right. According to the Land Law, residential land is different from commercial land.

“In fact, the problem that has to be solved now is that for officetel, serviced apartment, shophouse built on functional commercial land, condotel, townhouse, resort villa built on land The function of tourism, which many investors are ‘advertising’ will be issued red book “residential land does not form the unit,” HoREA stated.

HoREA recommends solutions “land tourism”

Because both solutions are unreasonable, HoREA recommends Solution 3 (new).

Specifically, HoREA recommends adding “Land used for tourism” to “Article 153. Land for trade, services, tourism, land for non-agricultural production” Land Law 2013 for unified management.

“Land used for tourism” is used only for the purposes of tourism, convalescence and not to be transformed into a residential area of ​​the household to avoid overloading the system of technical infrastructure, social infrastructure of the area.

In addition, HoREA also recommends that buyers of condotel products in resort projects will be issued with a long-term stable land use right and land use right certificate, similar to those provided for in paragraph 3 Article 126 of the Land Law 2013 allows homebuyers in housing projects to be issued with a certificate of ownership of land and stable land use rights.

Unfinished legal is the weakness of condotel
Unfinished legal is the weakness of condotel

In addition, HoREA recommends land use regimes for agricultural land; commercial land, services, tourism; non-agricultural production base.

Accordingly, the Association agrees with the draft Land Law (amended), Clause 2 of Article 125 regulates long-term land use regimes for “Agricultural land used by communities as stipulated in Clause 3, Article 131 of this Law. “

The Association recommends that households and individuals be entitled to use agricultural land in accordance with the regime of stable land use. As the Land Law of 2013 has increased the term of agricultural land use to 50 years and can be extended, the allocation of agricultural land to “households and individuals” for long-term use is very necessary. , in accordance with the tradition of the nation

The Association also proposed amending and supplementing the Land Law 2013 to implement the regime of stable land use for “commercial, service, tourism land, non-agricultural production land”.

Thus, investors of projects using “commercial land, services, tourism, land for non-agricultural production establishments” shall be obliged to pay land use levy at market prices. State books, similar to the policy of collecting land use fees. This will contribute to increasing the transparency of the real estate market, generating more revenue for the state budget.

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HoREA opposed to propose land use regime for condotel, officetel of Ministry of Natural Resources and Environment
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