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What Is Legal Basis For Condotel?

Condotel

Currently many condotel projects have developed aggressively in coastal cities, however, the investment, construction and sale of condotel apartments have not regulated, specifical adjustment in the legal documents. According to the Ministry of Construction, this unit will soon study and promulgate specific standards according to its competence to recognize the type of works.

Businesses still “swim” by themselves

Many experts in the field of real estate say that the rapid development of the type of resort that legal framework for this type has not kept up. It seems that businesses still have to find their own guides and build their own models.

Nguyen Quang Hung, general director of Quang Hung Company, which is constructing the condotel project in Vung Tau, said that during the construction of the project, he and the licensing agency were embarrassed many times by the Business Law of real estate does not mention much of the content involved. For example, condotel apartment when sold to customers, the deal is the sale of apartments, but the apartment in the law has not named and not granted the title to the customer.

According to real estate expert Tran Duc Phuong, land law still lacks regulations on the classification and the mechanism of mixed land use. For example, condotel is a type of apartment that used as residential land, as well as land for commercial services. This type of apartment also needs to be issued certificates of land use rights, ownership of houses and other assets associated with land for this type of real estate.

Another real estate expert said that now the type of resort called under different names with the common name: villa, apartment as resort real estate, tourism real estate…Or a separate name for a room in a high-rise building such as a tourist apartment or apartment only.

Condotel
The condotel project is very much developed but still not legally clear.

The legal framework for this type of real estate is now almost empty. Businesses build such projects must be touted under the Real Estate Business Law, and must basis on relevant laws like the Law on Tourism and the Housing Law, even the text of the Urban Planning Law 2009 and the guiding documents only regulate the “urban area” in general. Although in the policy and planning of each area, there are plans and plans for tourism development

Localities are building “urban tourism” but based on the “urban area” with the standard of the unit should be both wasteful in investment and difficult to build a travel model to attract tourists.

In addition, due to not yet promulgated legal framework, so also the problem of investment procedures, land allocation, planning, construction design … also after the handover to the buyer put into use. ..

Based on land characteristics of the condotel type, there are some models such as land allocation (residential unit formation) and buyers will grant long-term ownership certificates, including the Flamingo Dai Lai Tourist Area. Or they can be allocated residential land (without forming housing units) and buyers are granted permanent ownership certificates such as in Khanh Hoa province and land is allocated as in Phu Quoc.

It can be seen that all condotel projects now want buyers to be certified must match the type of residential land. Therefore, not condotel any buyer is also certified.

Condotel
The condotel project is a mere hotel project under the Tourism Law, investors are not allowed to sell

Talking to reporters, lawyer Pham Van Hung, Ho Chi Minh City Bar Association said that currently, the certification implemented in accordance with Circular 23/2014 / TT-BTNMT dated 19/05/2014 of the Ministry Resources – Environment. However, not all condotel sold to the buyer, so the buyer only granted a certificate for the project content (the whole project or part of the project) investors allowed to do business under the Law Real estate business.

The condotel project is a mere hotel project under the Tourism Law, investors cannot sell, if the buyer still signs the contract cannot issue certificates. Although the type of resort real estate currently has no legal name according to Circular 23/2014 / TT-BTNMT, the approval decision will write the name of the project, the only problem is the certificate cannot use the foreign name “villa” or “condotel”. It may be necessary to use the name in the way specific features not mentioned in Circular 23/2014 / TT-BTNMT such as resort (apartment) resort … , But cannot be the villa (apartment) tourist to mistake for hotel projects, tourism projects (not divided and sold).

Mr. Hung also said that according to the current law, real estate business enterprises resort still sell the villas, apartments on commercial land and not necessarily move to residential land. The confusion of this type is also a part of the responsibility of the owner and too heavy a sense of ownership of long-term stability or ownership of the term (not more than 50 years) of the customer.

Ministry of Construction wants to “recognize”

At the end of April, the Vietnam Real Estate Association (VNREA) has proposed to the Ministry of Construction on the type of coastal condotel real estate. In the written proposal, VNREA said that the Ministry of Construction should adjust, propose amendments to the law and related legal documents on condotel planning.

There are proposals for the granting of land use rights and hotel ownership certificates (certificates) to customers who purchase condotel along the seashore towards individuals or organizations. They may purchase condotel (not in the form of transfer whole or part of the project) and be issued a certificate, whether the coastal condotel project is built on commercial land or residential land without forming housing units.

In addition, the Association also proposed the addition of Clause 2, Article 10 of the Land Law on non-agricultural land residential land does not form residential units. Article 55 of the Land Law regarding land allocation with collection of land use fees for residential real estate projects planned on residential land does not form residential units.

In Document No. 67 / BXD-QL, responding to VNREA’s recommendations on these recommendations, the Ministry of Construction said that it would soon study and promulgate legal documents on specific standards for this type of work.

Condotel
All condotel projects now require certified buyers to be suitable for the type of residential land.

The Ministry of Construction also asked the Government to assign the Ministry of Natural Resources and Environment (MOI) to lead the study on land legislation and to amend and supplement the regulations on the classification and the mechanism for using the mixed land. Both residential land and service land and the granting of land use right certificates, ownership of houses and other assets attached to land for this type of real estate.

It is proposed that the Ministry of Finance and the Ministry of Natural Resources and Environment be assigned to preside over the study on land finance and should supplement the regulations on collection of land use fees for mixed land to suit the real estate sector.

Other proposals of VNREA such as duration of ownership, assignment of contracts, ownership of foreigners, infrastructure investment …, the Ministry of Construction said that they have recorded and coordinated with the relevant agencies to study and submit to competent authorities for early consideration and settlement.

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What Is Legal Basis For Condotel?
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