Legal documents for condotel (Condo & Hotel): How to solve problems?

VCN- Booming in the past period, but so far condotel has not been recorded in the legal documents related to housing and real estate.
phap ly cho condotel nghen o dau va thao nhu the nao FLC Chairman: "Investors of condotel want a recognized property and long-term ownership
phap ly cho condotel nghen o dau va thao nhu the nao Difficulty in granting certificate for condotels due to lack of clear mechanism
phap ly cho condotel nghen o dau va thao nhu the nao The condotels section continues to heat up real estate
phap ly cho condotel nghen o dau va thao nhu the nao
Condotel should be legalized to facilitate the management and protection of legitimate rights of people as well as businesses.

Besides owners, the property rights of investors have not been officially confirmed by the authorities, so the liquidity of condotel will also be affected. The introduction of this type of real estate into law management should be paid close attention, after nearly 5 years of "outlaw".

The Law has not "covered"

Born in 2014, condotel is currently witnessing a boom in the number of products entering the market. According to data of the Vietnam Real Estate Association, in 2017, in some key markets such as Da Nang, Khanh Hoa, Phu Quoc, Binh Thuan, Quang Ninh, there were more than 22,800 tourism apartments offered for sale, with the number of successful transactions being more than 12,500 units.

However, unlike the traditional hotel rental business, many developers of condotel projects sell these apartments to raise funds for projects with a commitment to provide apartments and ownership certification with high profitability. And the story of this type of real estate has become "hot" so far, because no condotel apartment has been issued "red book", which may pose risks to customers. In fact, the condotel is not legally defined in Vietnam, except for the concept of"Tourist Apartments" in Article 48 of the Tourism Law, but unfortunately, this is not a law relating to housing and land. Mr. Nguyen Tran Nam, Chairman of the Vietnam Real Estate Association said that because this was a new type of real estate, it had not been regulated in the relevant laws, thus causing difficulties in the management of the agency, affecting the legal and legitimate interests of people as well as businesses.

Prof. Dr. Dang Hung Vo said that according to the Land Law 2013, land for development of condotel is land for non-agricultural business services with a normal life of 50 years, in some cases 70 years. However, some localities have assigned this land according to the regime of long-term use. Besides, some localities still allocate land for service business.This fact has also been acknowledged by enterprises. The representatives of FLC Group said that Binh Dinh province has granted long-term land for enterprises, including condotel. However, because the land allocation is attached with electricity, roads, schools, stations, so the company has advised the province not to form housing units. Currently, more than 10 provinces such as Khanh Hoa, Da Nang, Quang Ninh, etc., have not formed housing units in some projects.

"According to the current law, condotel land use rights in resort projects are limited based on term of the project, and may be renewed", Mr. Le Hoang Chau said.

Condotel needs to be legislated

Regarding this issue, the representative of the Ministry of Finance have also warned.

Accordingly, Dr. La Van Thinh, Deputy Head of the Public Property Administration under the Ministry of Finance, emphasized that the current Law only permitted organizations and individuals to use land for a long term with respect to residential land after fulfilling their obligations. The remaining land types (other than residential land) shall only be used in the form of lease and use for a definite term. Buyers and sellers assume that the right to use land with condotel apartment is the same as the right to use residential land. However, in the long term, Dr. La Van Thinh said that it was necessary to study legal documents carefully. Thus, we must amend and supplement the provisions of the Law to ensure the property rights of the investors (secondary) as buyers of condotel apartments.

The issue of ownership of condotel is difficult due to the lack of a clear mechanism and this also reduces the liquidity of the product. According to the report of the Vietnam Real Estate Brokerage Association in the first quarter of 2018 in Nha Trang, the top resort and luxury condotels accounted for 35% of total transactions apartments in Nha Trang, Khanh Hoa, but in the fourth quarter of 2018, F1 investors will find it difficult to transfer because of poor liquidity.

To complete the legal status of the condotel, the Ministry of Construction recently said that the Ministry of Construction and other ministries will put content provisions on condotel type into the Law amending and supplementing the Housing Law, Law on Real Estate Business, Law on Construction and Law on Urban Planning.

On this issue, Prof. Dr. Dang Hung Vo said that the relevant ministries should propose legal solutions to the Government for early decision to solve this legal bottleneck. In fact, when land for development of tourism and condominiums is used as residential land, it is very effective in attracting large capital investment from secondary investors because they want to have permanent property ownership. This means that the adjustment of the Law has a great impact on the development of tourism and resort.

phap ly cho condotel nghen o dau va thao nhu the nao Condotel segment awaiting removal of obstacles

VCN – Presenting from 2014-2015, the condotel segment (hotel apartment projects, villas, townhouses in the resorts) has ...

"In my opinion, the current Land Law needs to be amended in the direction that real estate investors are allowed to choose the form of residential land allocation or lease or for services in order to implement real estate development projects of tourist resorts. When selecting land, the person who is assigned land must fulfill the financial obligations. This will give investors more options for their investment. All information on land allocation and lease must be publicized so that secondary investors can decide on investment participation", Mr. Dang Hung Vo suggested.

By Hoai Anh/ Hoang Anh

Related News

Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

VCN - France is Vietnam's leading trade partner in Europe with bilateral turnover reaching billions of US$/year.
Rubber exports grows sharply in June

Rubber exports grows sharply in June

VCN - According to Import – Export Tax Department (Ministry of Industry and Trade), Vietnam's rubber exports in June 2024 reached about 150 thousand tons, worth 238 million USD, up 77.6% in volume and 76.6% in value. Price compared to May 2024.
Vietnam rises 11 places in budget transparency ranking

Vietnam rises 11 places in budget transparency ranking

VCN - The results of the Open Budget Survey 2023 (OBS 2023) have just been announced by the International Budget Cooperation (IBP), Vietnam's budget transparency ranking continues to be raised to 57 out of 125 countries, climbing 11 places compared to the 2021 assessment period and rising 20 places compared to 2019.
South Korea is Vietnam’s leading trading partner

South Korea is Vietnam’s leading trading partner

VCN – South Korea has maintained its position as largest trading partners of Vietnam for many years.

Latest News

Promoting review, classification and management of tax debt

Promoting review, classification and management of tax debt

VCN - According to the General Department of Customs, the amount of overdue debt recovered and processed in the first 6 months of 2024 for the all Customs sector reached VND 349 billion. To ensure completion of tax debt collection and settlement targets, the General Department of Customs requires units to focus on reviewing debt management records to effectively implement measures to urge, collect and handle tax debt.
Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

VCN - VCN- Vehicles carrying import and export cargo across customs clearance routes and specialized roads in the international border gate pair of Huu Nghi (Vietnam) - Huu Nghi Quan (China) must comply with international treaties and regulations of Vietnam Law. Accordingly, the vehicles transporting import and export cargo across Lang Son border gates are required to have at least seven valid documents from August 1, 2024, Lang Son Department of Industry and Trade notified.
Does goods imported for investment incentives project subjected to tax exemption?

Does goods imported for investment incentives project subjected to tax exemption?

VCN - That is the problem of Ba Ria - Vung Tau Customs Department related to processing tax exemption documents for imported goods to serve investment incentive projects.
Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

VCN - According to Lang Son Customs Department, to implement the master plan of the land border gate area associated with the goal of digital transformation, in which, to ensure successful implementation of the Customs Development Strategy until 2023, Building digital Customs, a smart Customs model, it is necessary to review and evaluate the overall system of land border gates, paying attention to investment in equipment, facilities, and human resources.

More News

Proposal to reduce registration fees to restore growth of domestic automobile industry

Proposal to reduce registration fees to restore growth of domestic automobile industry

VCN - Facing the significant decline in auto market sales in the last months of 2023 and early 2024, the Ministry of Finance is asking for opinions from ministries, central agencies and relevant agencies on continuing to reduce registration fee to restore growth of the domestic automobile industry amid many difficulties and challenges in the economy.
VAT reform promotes sustainable development of the agricultural sector

VAT reform promotes sustainable development of the agricultural sector

VCN - In the revised Draft Law on Value Added Tax (VAT), the conversion of fertilizers and specialized machinery and equipment serving agricultural production to applying 5% VAT since it belongs to the group of subjects not subject to tax according to current law, it is a content that receives attention from the business community, especially fertilizer production enterprises. According to experts and businesses, converting this item to a taxable object will have a huge impact on agricultural production.
Customs implements VAT reduction policy from July 1st

Customs implements VAT reduction policy from July 1st

VCN - To implement the contents relating to customs field, General Department of Vietnam Customs requested local customs departments to reduce VAT for group of commodities as stipulated at Decree 72/2024/NĐ-CP.
Amend the Law on Corporate Income Tax to ensure stable revenue sources for the budget

Amend the Law on Corporate Income Tax to ensure stable revenue sources for the budget

VCN - According to the Ministry of Finance, the amendment of the Law on Corporate Income Tax (CIT) aims to overcome inadequacies and overlaps, ensure stable revenue sources for the state budget, and contribute to restructuring state budget revenues in a sustainable direction.
List of imported and exported medicine and medicinal ingredients identified commodity codes

List of imported and exported medicine and medicinal ingredients identified commodity codes

VCN – 14 lists of imported and exported medicine and medicinal ingredients for human use and cosmetics that have been identified commodity codes under Vietnam’s Imports and Exports Nomenclature, have been approved and issued by the Ministry of Health from July 26, 2024.
Hundreds of tons of imported raw cashew nuts stuck in quarantine

Hundreds of tons of imported raw cashew nuts stuck in quarantine

VCN – A company is facing problems with plant quarantine regulations when carrying out procedures to import over 384 tons of "raw cashew nuts, originating from Tanzania" from a bonded warehouse in Dong Nai.
Extend deadline for paying Special Consumption Tax on domestically produced and assembled cars

Extend deadline for paying Special Consumption Tax on domestically produced and assembled cars

VCN – The Government has issued Decree 65/2024/ND-CP dated June 17,2024 extending the deadline for paying Special Consumption Tax on domestically produced and assembled cars. The Decree takes effect from the date of signing until December 31, 2024.
Extend the deadline for paying taxes and land rent in 2024

Extend the deadline for paying taxes and land rent in 2024

VCN - The Government has just issued Decree No. 64/2024/ND-CP dated June 17, 2024 extending the deadline for paying value added tax (VAT), corporate income tax (CIT), personal income tax (PIT) and land rent in 2024. This Decree takes effect from June 17, 2024 to December 31, 2024. After the extension period according to this Decree, the deadline for paying taxes and land rent will comply with current regulations.
Tax payment deadline for domestic cars extended

Tax payment deadline for domestic cars extended

The Government has decided to extend the deadline for special consumption tax payment for domestically manufactured or assembled automobiles.
Read More

Your care

Latest Most read
Promoting review, classification and management of tax debt

Promoting review, classification and management of tax debt

According to the General Department of Customs, the amount of overdue debt recovered and processed in the first 6 months of 2024 for the all Customs sector reached VND 349 billion.
Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

VCN - On July 18, Lang Son Department of Industry and Trade notified the method of delivery and receipt of import and export cargo transported across customs clearance routes and specialized roads in the International Border Gate pair of Huu Nghi (Vietnam
Does goods imported for investment incentives project subjected to tax exemption?

Does goods imported for investment incentives project subjected to tax exemption?

That is the problem of Ba Ria - Vung Tau Customs Department related to processing tax exemption documents for imported goods to serve investment incentive projects.
Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

VCN - According to Lang Son Customs Department, to implement the master plan of the land border gate area associated with the goal of digital transformation, in which, to ensure successful implementation of the Customs Development Strategy until 2023, Bui
Proposal to reduce registration fees to restore growth of domestic automobile industry

Proposal to reduce registration fees to restore growth of domestic automobile industry

VCN - Facing the significant decline in auto market sales in the last months of 2023 and early 2024, the Ministry of Finance is asking for opinions from ministries, central agencies and relevant agencies on continuing to reduce registration fee to restore
Mobile Version