New types of real estate including officetels, shophouses,… And condotels for many years have had legal problems at the certification stage. Recently, the Government issued Decree 10/2023/ND-CP amending and supplementing a number of articles of decrees guiding the implementation of the Land Law. Accordingly, there are amendments and supplements that have had a significant impact on this type of resort real estate.
1. Supplementing legal terms for real estate construction for tourist accommodation purposes
Decree 10 is said to remove the legal bottlenecks for real estate businesses. The terms of types of resort real estate are known as follows:
– Condotel: Resort tourist apartment;
– Officetel: Accommodation office;
– Shophouse: Commercial townhouse.
Accordingly, Decree 10 allows tourist accommodation projects on commercial and service land to have their ownership certified (pink book). However, the works must meet all conditions to be granted the pink book.
2. Problems may arise when real estate businesses apply new points into practice
The addition of this regulation has met the expectations of real estate investors… Resolves bottlenecks in developing resort real estate business. Because for a long time, most resort real estate properties have not been issued pink books… Therefore, investors have not been able to trade or buy or sell on the secondary market.
However, Decree 10 has not yet completely met the problems of enterprises. Detail:
According to the new regulations, works must meet all conditions to be granted a pink book. But there is no specific regulation on the agency responsible for determining eligibility for the project.
In addition, the investor must fulfill financial obligations when submitting the application. In fact, there are many projects that have to adjust their planning… Therefore, financial obligations must be redefined to pay more money.
Then, what are the next problems in the management and operation of the apartment?
3. Solutions for land law enforcement to come to life soon
There have been suggestions that it is necessary to clearly define the responsibilities of local authorities, investors, owners… and project management units to help issue books sooner.
Although there are still problems, Decree 10 has created momentum for this segment to revive. Create more confidence in the legal value as well as asset value for businesses when investing in resort real estate projects.
(Refer to Investment Newspaper dated 10/4/2023)
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
