SDP Construction and Trading Co., Ltd (in Ba Ria - Vung Tau Province) had a demand to receive transfer of real estate projects is the bank's security for bad debts. Through the receiving and responding system to proposals of enterprises, the Company requests to be answered about the conditions and procedures for transferring this project.

- Project objective: Building warehouse for rent.

- Location: In Phu My Town, Ba Ria - Vung Tau Province.

- The project was granted the first investment certificate in 2008 and changed for the first time in 2014; duration of 50 years.

- Project implementation schedule as prescribed in the Investment Certificate: Starting construction in 2014 and completing construction investment and putting the project into operation in 2017.

- The project has been granted a land use right certificate (land rent is paid annually).

- Situation: Completed the compensation for site clearance (by the investor itself by decision of the Provincial People's Committee); clearance of mines and ERW; cleaning, dredging ground; leveling 50% volume. The project is underdone due to a number of obstacles such as: Clearance compensation, prolonged difficulties, no connection to the project ... Currently applying for an extension.

After review, the project is sure to fully meet the following conditions:

- The project has been approved by the competent State agency as prescribed by law.

- There is a land allocation or lease decision issued by a competent state agency.

- The project has no dispute over the land use right which has been accepted but has not been resolved or is being resolved at a competent court; are not being distrained to ensure the execution of judgments or to comply with administrative decisions of competent State agencies.

- The project has no dispute over the land use right which has been accepted but has not been resolved or is being resolved at a competent court; are not being distrained to ensure the execution of judgments or to comply with administrative decisions of competent State agencies.

- Although the project is under implementation, there has been no decision on project recovery or land acquisition by the competent State agency.

In order to ensure the legal basis for the transfer of the secured assets of the bad debt as mentioned above, the SDP Construction and Trading Co., Ltd would like to request the authorities to answer:

- Is the transfer of debts being assets formed in the future according to the above real estate project eligible for implementation?

- After receiving the transfer, the company is allowed by the competent agency to carry out such procedures as: Changing the name in its investment certificate, land use right certificate and related procedures; at the same time be extended the project implementation schedule, construction permit ... to continue implementing the project according to the determined purpose?

- Conditions to meet the regulations of the law on real estate business of enterprises receiving project transfer as prescribed in Clause 2, Article 10 of Resolution No. 42/2017 / QH14, in addition to having full business functions for real estate businesses according to Decree No. 76/2015 / ND-CP and the relevant business lines, what specific conditions are needed?

Regarding this issue, The Ministry of Construction responded as follows:

- Conditions of transferred real estate projects are bad debts of credit institutions complied with Clause 1, Article 10 of Resolution No. 42/2017 / QH14 dated June 21, 2017 of the National Assembly on piloting the handling of bad debts of credit institutions, specifically as follows:

“1. A credit institution or bad debt purchaser/manager is entitled to assign collateral being a real property project if all of following requirements are satisfied:

a) The project has been approved by competent authorities as per the law;

b) A decision on land allocation or land lease has been issued by competent authority;

c) The project is not in dispute over land use right in a case that has been accepted but remained unsolved or has been resolving at an authorized court; the project is not distrained for judgment enforcement or observance to administrative decisions of competent authorities;

d) No decision on revocation of project or land expropriation has been issued by competent authorities”.

Werecommend SDP Construction and Trading Co., Ltd. to compare project documents in accordance with the above provisions to have a basis for implementation.

- Conditions of the assignee of a real estate project being a bad debt of credit institutions complied with Clause 2, Article 10 of Resolution No. 42: “The assignee of project must meet conditions for real estate trading; inherit rights and obligations of investor and initiate procedures to resume the project as prescribed in law on investment and construction.”, whereby:

In Clause 3, Article 49 of the Law on Real Estate Business 2014 provides: “Investors receiving transfer of all or part of real estate projects must be real estate enterprises, have sufficient financial capacity and commit to continue the construction and business investment in accordance with regulations. regulations of law, ensuring project schedule and contents”.

Article 3, Article 4 of Decree No. 76/2015 / ND-CP dated September 10, 2015 of the Government provides: “real estate business organizations and individuals must establish enterprises in accordance with the law on enterprises or cooperatives in accordance with the law on cooperatives (hereinafter collectively referred to as enterprises) and must have legal capital must not be lower than VND 20 billion. "

- At the same time, according to the provisions of Clause 2, Article 14 of the Government's Decree No. 43/2014 / ND-CP dated May 15, 2014 detailing the implementation of a number of articles of the Land Law: “The transferee of the project must have its own capital to implement the project, which is not less than 20% of the total investment capital for projects with land use scale of less than 20 ha; not less than 15% of the total investment of projects with land use scale of 20 ha or more ”.

We recommend the SDP Construction and Trading Co., Ltd based on the above regulations to implement.

Procedures after receiving real estate project transfer:

Procedures after real estate transfer is implemented as follows:

Clause 3, Article 48 of the Law on Real Estate Business 2014 provides: : “An investor who receives a real estate project is granted a land use right certificate, ownership of houses and other land-attached assets or is registered for change in the certificate granted to the old investor in accordance with the law on land.

Clause 4, Article 48 of the Law on Real Estate Business 2014 stipulates: “An investor who receives a real estate project transfer does not have to redo the project file, construction planning and construction permit of the project, otherwise there is a change in the content of investment policy approval, investment decision of the project.

If after the transfer of a project, if the new investor wishes to extend the project implementation schedule, it shall report it to the competent agency to permit the investment in the project to consider the decision in accordance with law. the law.