The transfer of real estate project is one of the strategic business plans which is considered, deliberated by the investors for their real estate business company accordingly might expand the business operation, develop the project on the basis of an existing project. Simultaneous, this regulation is also considered as a progressive regulation in order to facilitate the completion of the project, facilitate the investors to proactively make decisions in accordance with the business investment situation currently, reduce the deficit to the investor regarding the financial issues.

Accordingly, DIMAC Law Firm would like to provide the useful legal information to the enterprises regarding the regulation on the conditions for transferring the real estate project as follows:

I. The conditions for transferring the real estate project

1. The condition regarding the project

i. The project is approved by competent agencies, having a detailed planning 1/500 or general ground planning approved;

ii. The transferred project or a portion of the transferred project has been finished the compensation or site clearance. With regard to the transfer of the entire infrastructure construction projects, the technical infrastructure constructions must be completed equivalent to schedule as recorded in the approved project;

iii. The project has no dispute regarding the land using right, no distraint to warrant the judgment execution or to warrant the enforcement of the administrative decision of the competent agencies; and

iv. There is no decision on project or land withdrawal of the competent agencies; in case of having any violation during the progress of the project implementation, the investor is required to complete the decision on penalty.

2. The condition regarding the Investor: The transferor already has the land use right certificate for all or a portion of the transferred project.

3. The condition regarding the transferee: The transferee for all or portion of the real estate project shall be the real estate business company, having, having sufficiently financial capacity and commit to continue implementing construction investment, running business in accordance with the law, ensuring the progress, the project content.

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II. The timeline

i. With regard to the project subject to the authority of the provincial-level People's Committee: 30 days as from the date of receiving the valid dossier; and

ii. With regard to the project subject to the authority of the Prime Ministry: 45 days as from the date of receiving the valid dossier.

Note: Within 30 days from the date of issuance the decision for allowing the project transfer issued by the competent agencies, both parties have to complete the signing of the transfer agreement and complete the handover of the project.

Besides, in case the real estate project transferee is a foreign-invested company, after having the decision for allowing the project transfer issued by the competent agencies, the transferor carries out the procedure to give the land back to the State; the competent agencies decide to allocate land, lease land in respect to the transferee within 30 days as from the date of receiving the valid dossier.