From today, condotel apartments are granted 'red books'

Decree No. 10/ND-CP signed by Deputy Prime Minister Tran Hong Ha has amended and supplemented many legal issues that have been stuck for many years.

Most notably, the Decree allows the granting of certificates of land use rights, house ownership rights and other assets attached to land to buyers of products in projects other than housing projects, including tourist accommodation facilities on commercial land.

Specifically, Clause 4, Article 1 of Decree 10/2023/ND-CP has added cases where ownership rights can be certified for construction works that are not houses.

From today, condotel apartments are granted 'red books' - 1 — The decree on granting "red books" for condotels takes effect from today, May 20. (Illustration photo: Internet)

Accordingly, the certificate of ownership of construction works used for tourist accommodation purposes according to the provisions of the law on tourism on commercial and service land, if meeting the conditions prescribed by the law on land, the law on construction, the law on real estate business, shall be certified for ownership of construction works attached to the land according to the purpose of commercial and service land use; the land use term is according to the provisions of Clause 3, Article 126, Clause 1, Article 128 of the Land Law. The owner of the construction work is responsible before the law for meeting the conditions prescribed by the law on construction, the law on real estate business.

The certification of ownership of construction works specified in this Clause shall be carried out in accordance with the provisions in Clauses 1, 2, 3 and 4 of this Article. The display of information about the land plot on the Certificate must be in accordance with the purpose and duration of land use as prescribed by law.

Based on the above regulations, from May 20, 2023, for tourist apartments (condotels) that meet the conditions prescribed by law, they will be granted a Certificate of Ownership (in practice, often called a red book).

However, because condotel is not a house. Therefore, even if granted a Certificate of Ownership, the owner cannot register permanent residence at that condotel.

Recently, the Ministry of Natural Resources and Environment also sent an Official Dispatch to the People's Committees of provinces and centrally-run cities to review and issue documents under its authority to organize the implementation of Decree No. 10/2023/ND-CP, promoting the issuance of "red books" for condotel apartments, officetels, tourist villas (office apartments combined with accommodation)...

According to experts, Decree No. 10/2023/ND-CP will remove legal bottlenecks for businesses and buyers of hotel apartments, resort apartments (condotels), officetels, resort villas and other works serving accommodation and tourism on commercial and service land.

Mr. Pham Duc Toan, General Director of EZ Real Estate Investment and Development Joint Stock Company (EZ Property) said that the new Decree has been awaited by the whole market for a long time and when it comes into effect, it will create a way out for many unfinished projects.

For a long time, the legal issues for condotels have been unclear, and some localities have tried to “break the rules” to remove this bottleneck but had to revoke it immediately afterwards. Therefore, the new Government Decree has created a legal corridor for buyers to feel secure about their ownership and property value, creating a new breeze in the tourism real estate market.

" For Condotel transactions, customers will feel more secure because they can clearly own them when this type is certified by the State. Transactions in the secondary market are also simplified. Buyers and sellers only need to go to the notary office to complete the transfer procedures. Previously, in addition to notarization, buyers also had to go through procedures with the investor and pay an additional fee to the investor," Mr. Toan explained.

Regarding management and operation, the owner will also be protected under the Law on Real Estate Business and the Law on Housing. The agreement between the apartment owner and the management and operation unit will also be balanced. Previously, the owner gave the contract and then handed it over and was completely dependent on the management and operation unit, but now the buyer will have more autonomy over his apartment.

Also expressing support for the new regulation, Mr. Nguyen Van Dinh - Vice President of the Vietnam Real Estate Association - said that the weak legal system has become a barrier, causing the tourism real estate market to "freeze" over the past time. This is the paradox of the market.

“ Decree No. 10/ND-CP, which many developers and investors have been waiting for, has created a breakthrough in synchronizing the legal system. With this new policy, unfinished projects in major resort tourism centers such as Da Nang, Nha Trang, Phu Quoc... will benefit and have legal obstacles removed ,” said Mr. Dinh.

Condotel (hotel apartment) is a type of real estate that combines the model of an apartment (condominium) and a hotel room (hotel), which can be both lived in and rented out.

Le Thinh

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