Housing formed in the future appears more and more in society. A series of sales and mortgage transactions related to this real estate product. So have you understood them correctly? Let’s find out more with AequitasAudit.com in the article below!
What is housing in the future?
Future housing is a product of the real estate industry. They are an asset class that is formed in the future.
In Clause 4, Article 3 of the Law on Real Estate Business 2014, the definition is concise, concise and easy to understand. Specifically as follows: “Houses, construction works to be formed in the future are houses and construction works that are in the process of being built and have not yet been accepted and put into use”.
Conditions for selling houses formed in the future
Real estate products formed in the near future that are put into business, sale and transaction must fully satisfy the conditions in the Law on Real Estate Business, the Law on Housing and guiding documents. Specifically, the conditions for buying and selling houses formed in the future are as follows:
- There are documents on land use rights.
- Full project file available.
- Having a construction drawing design approved by a competent State agency.
- Have a building permit.
- For apartments and mixed-use buildings, there is a need to have a record of acceptance and completion of the foundation of the building.
- For low-rise and adjacent houses, it is necessary to have a acceptance report on the completion of the corresponding infrastructure construction according to the project schedule.
- There is a document from the Department of Construction confirming they are allowed to be sold.
- Having a commercial bank with sufficient capacity to guarantee financial obligations.
- The project is not subject to dispute, distraint or mortgage.
Should buy a house in the future?
This is a difficult question. Whether to buy this house or not is up to each person. There are many factors affecting this decision such as: investment preference, investment potential, liquidity of investment, calculated profitability, etc.
If you buy to invest, you need to pay attention to carefully consider the possibility of eating more or less difference? When it changes hands, profit or loss or break even? You can easily calculate according to your feelings and evaluation. However, reality is multifaceted. Just a little mistake will also make you lose a large amount of investment.
If you are buying to live and use, choose reputable investors. What are the highlights of the project? As well as calculating whether it will meet the family’s life needs in the long run? And of course, you must not forget your financial capacity.
In addition, no matter what purpose you buy, you also need to check that they fully meet the above delivery conditions. If you haven’t, don’t be impatient to cash in.
Contracts for the sale of houses formed in the future
What is a contract for the sale of a house formed in the future?
This is a contract that represents the agreement and agreement between the parties in writing on the purchase and sale of real estate products to be formed in the future. Accordingly, the seller will hand over the house and land use rights to the buyer when the construction is completed. The buyer must pay the house purchase price to the seller in accordance with the contents agreed upon by the two parties in accordance with current provisions of law.
This contract must be in writing. They are not necessarily notarized or authenticated. But the drafted content must comply with the law on form and content.
Contents of the contract
According to Article 18 of the Law on Real Estate Business 2014, the form of a house sale and purchase contract formed in the future must ensure the basic contents. Specifically include:
Housing Information Terms
Because the project will be formed in the future, at the time of signing the contract it has not yet formed. Therefore, investors need to provide specific, clear and detailed housing information. This will avoid confusion and limit unnecessary disputes later.
Terms of sale price
The parties must agree on the purchase and sale price right at the time of signing the contract. The price charged at any time is subject to agreement between the parties. However, if the buyer chooses the price at the time of signing the contract, the seller must comply. Because this is a right that the law gives the buyer of this product.
Rights and obligations of the parties in the contract
As a type of bilateral contract, the right of the obligor is the corresponding obligation of the other party. These rights and obligations comply with articles 21 to 24 of the Law on Real Estate Business 2014. In addition, it is subject to a number of other regulations.
These include some important rights and obligations such as:
- For the seller: is obliged to provide information according to article 442 of the Civil Code 2005, to use the advance for the right purpose, to hand over the property and to transfer the ownership according to Clause 4, Article 22 of the Law on Real Estate Business 2014 .
- For the buyer: has the right to transfer the sale and purchase contract and fulfill the payment obligation under Clause 1, Article 57 of the Law on Real Estate Business 2014.
Can residential mortgages form in the future?
According to the provisions of Clause 2, Article 147 of the Law on Housing 2014, houses to be formed in the near future on legal land or in the investor’s housing construction investment project are mortgaged. However, they are only mortgaged at credit institutions operating in Vietnam. The purpose is to get capital for housing construction or to buy the house itself, but not for any other purpose.
In order to mortgage, these real estate products need to satisfy the provisions of Point b, Clause 3, Article 7 of Circular 26/2015/TT-NHNN. Specifically, the conditions are as follows:
- There is a house sale and purchase contract signed with the investor.
- There is a written transfer of the house purchase and sale contract if the transferee receives the house purchase and sale contract in accordance with regulations.
- There are documents proving the payment to buy the house for the investor.
- Not in the category of complaints, lawsuits, disputes about this house sale and purchase contract, transfer of this house purchase and sale contract.
- Not to be distrained for judgment enforcement or to execute legally effective administrative decisions of competent State agencies.
- Not subject to a decision on land recovery, a notice of clearance or demolition from a competent State agency.
Compared to the house that has been handed over, the mortgage application for this housing product is much more complicated. Accordingly, when you want to borrow money by mortgaging this property, the following documents are required:
- Contract of sale of housing.
- Mortgage contracts.
- Minutes of acceptance of houses with completed foundation construction.
- Investment certificate or Decision on land allocation or land lease.
- Certificate of transaction via real estate trading floor.
Thus, above, the article has helped you better understand houses and constructions that will be formed in the near future. Hopefully, through that, readers will have more legal knowledge about this real estate product. From there make wise, sober and successful investment decisions.
-Thuy An – Real Estate Information Analyst-
>>> See more: Procedures for transferring houses formed in the future