At the 5th Session, the 15th National Assembly discussed the Law on Real Estate Business (amended). Regarding the contents of the draft Law, Nguoi Dua Tin had an interview with National Assembly Deputy Quan Minh Cuong - Head of the National Assembly Delegation of Dong Nai Province.
Investor: Dear delegates, the 15th National Assembly has discussed the Law on Real Estate Business (amended), the Law clearly stipulates the rights and obligations of individuals and organizations building houses and participating in the real estate market. So, what are your concerns about this bill?
National Assembly Deputy Quan Minh Cuong: It can be said that the Law on Real Estate Business (amended) has so far clearly stipulated the rights and obligations of individuals and organizations building houses, participating in the real estate market, and harmonizing the relationship between the State, people, and enterprises.
Due to the overlap between the Law on Real Estate Business (amended), the Housing Law, the Investment Law and especially the draft amended Land Law... I also propose some contents.
Regarding capital conditions for organizations participating in the real estate market. At point c, clause 1, Article 10 of the Law stipulates that in addition to the conditions on equity capital on total investment capital, it also stipulates the condition of "must ensure the ability to mobilize capital to implement investment projects" .
National Assembly Delegate Quan Minh Cuong talks with Nguoi Dua Tin (Photo: Hoang Bich).
However, according to the provisions of the Investment Law and the Bidding Law, there are clear provisions on the investor having to ensure financial capacity. During the process of appraising investment project documents, bidding documents and approving investment policies, there has been a review of the investor's demonstration of financial capacity, so the additional provisions in this Law are unnecessary and may cause additional administrative procedures.
In addition, Clause 1, Article 10 adds Point d, stipulating that "Real estate project investors must ensure the ratio of outstanding credit and outstanding corporate bond debt to their own capital according to Government regulations".
Currently, the Government has no specific regulations on the ratio of outstanding credit and outstanding corporate bonds to the capital owned by the enterprise (currently there are only relevant regulations in the banking sector) .
Therefore, I propose that the drafting agency study and not include this content in the draft or have a draft decree of the Government on this issue so that delegates can contribute their opinions.
Investor: In your opinion, how should the investor's responsibility in building social infrastructure in real estate business projects be implemented to resolve the problems?
National Assembly Delegate Quan Minh Cuong: Regarding the responsibility of investors in building social infrastructure in real estate business projects, Clause 7, Article 18 stipulates that investors "are only allowed to hand over houses to customers when they have completed the construction of houses and technical infrastructure works, social infrastructure according to the progress recorded in the approved project".
In my opinion, social infrastructure is a very broad concept, understood as all commercial, public, educational, medical, etc. utility works.
In fact, in projects, depending on the purpose and business plan of the investor, they can be opened for sale many times, so the number of residents moving to live in the project will follow the sales progress. Therefore, investors often build essential infrastructure in advance to meet the needs of residents (such as parks, trees, common areas, parking lots, entertainment areas, etc.).
The remaining social infrastructure such as schools, supermarkets and shopping centers will usually be implemented by secondary investors when the project has many residents.
In case the investor is required to build all social infrastructure systems of the project when the population density is not high, it will cause waste.
There needs to be specific regulations on essential social infrastructure (Photo: Pham Tung).
On the other hand, in reality, service providers in education, commerce, and supermarkets only carry out implementation when there is a certain population in each project (except for investors with an ecosystem including real estate and medical, educational, and commercial services who will carry out investment and business implementation themselves... However, in practice, some investors, when investing in many fields, have led to financial imbalance or ineffective business).
The regulation “completed construction…” is understood to mean that the works must be completed. For example, in the case of a project consisting of many items, including a separate school project that has been completed and is undergoing completion procedures but has not been confirmed, according to the provisions of the draft, the investor is not allowed to hand over the house to the customer.
In fact, the handover of houses between investors and customers is carried out according to the house/apartment sale and purchase contract and the draft also has specific regulations on the handover period and payment upon handover of the house.
At the same time, Point b, Clause 1, Article 31 also requires that real estate projects with land use rights that have invested in technical infrastructure construction and are put into business must meet the requirement: "Completed investment in construction of service works, essential technical infrastructure works in accordance with the design, detailed construction planning 1/500 or the approved master plan and content of the project", but also does not specify which essential service works include.
Therefore, I think there should be specific regulations on essential social infrastructure and only require investors to complete “essential technical infrastructure and social infrastructure works according to the progress recorded in the approved project” to be eligible to hand over houses or transfer land use rights to customers. This will solve the problems and be suitable for practice.
Investor: Thank you very much !
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