Legal bottleneck “residential land does not form residential units” – a barrier that needs to be removed for resort real estate
Legal confusion hinders the development of the resort real estate market
In recent years, the tourism real estate market segment has developed extremely vibrantly and spectacularly with many high-end real estate products such as condotels, shophouses, shoptels, resorts, homestays, farmstay… not only meet the increasing demand for resort and entertainment of tourists, but also create more attractive business opportunities for secondary investors and residents, bring a great source of revenue to the state budget, be the driving force behind important force for the growth of the real estate market in general.
However, policies and laws on tourism real estate business are incomplete, inconsistent and synchronous, which has caused confusion for the state management of the real estate market in localities and is a “bottleneck” for business investment activities in this segment.
From the perspective of State management, Mr. Nguyen Manh Khoi, Deputy Director of the Department of Housing and Real Estate Market Management, Ministry of Construction, once recognized that tourism real estate is currently subject to many different regulatory systems, from investment activities to investment activities. , business to the management and use. However, the provisions of the Land Law or the current Real Estate Business Law do not have specific concepts for tourism real estate, including Condotel, Shophouse, Resort villa, farmhouse… but only has a general concept, that is houses, constructions for commercial and service purposes.
Therefore, it is easy to cause confusion in the implementation process of both investors, investors and local authorities, arising disputes in business activities, buying and selling of this type of real estate. In the local case, it is determined that this is a type of housing, but it is not a residential unit,” said Mr. Khoi.
Analyzing further the risks that the tourism real estate market is facing due to the lack of a legal framework, Dr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association, affirmed that the law has not kept pace with other types of tourism. The form of tourism real estate has clearly formed in practice, leading to complicated problems in trading transactions, even blockages, “breaks” because from the beginning there was ambiguity in the story. Ownership of the products is tourist real estate built on residential land.
The tourism real estate products being built on residential land are currently being disturbed, leading to difficulties and confusion in management. Many projects have been completed, accepted and are eligible to be put into use… the investor has completed all financial obligations, but due to the congestion of the law, the red book was not granted. Even the market did not happen. There are few cases of revocation of red book of resort real estate issued to owners, causing prolonged disputes between customers and investors, causing distortions, hindering the development of the resort real estate market, which is very potential. capacity in Vietnam.
It is necessary to thoroughly solve the recovery of resort real estate after the Covid-19 epidemic
Remember in 2019, the thriving resort real estate market suddenly encountered a big shock when suddenly many condotel apartment projects that had been granted to guests were now withdrawn. This is an action to correct errors of a series of localities when the Government Inspectorate concluded that the issuance of red books with a long and stable term on land for production – business – trade – service purposes is wrong, causing loss of life. state budget revenue.
It is known that many localities have previously introduced the concept of “residential land not forming residential units”, tourist resorts, resort villas, condotels have sprung up in these lands. Not only that, buyers of these real estate products are attached to the right to use residential land in urban areas without forming residential units, which can be used stably and long-term, and issued red books for long-term use.
Typically in the case of Khanh Hoa, especially in the North Cam Ranh peninsula tourist area, the People’s Committee of Khanh Hoa province has issued investment certificates for more than 40 projects. However, among them, 22 projects have been granted by this province in the form of “residential land not forming residential units”. Among them are the Cam Ranh Golf Course and Eco-Villa Project of Nha Trang Petroleum Investment Joint Stock Company, Hyatt Regency Cam Ranh Bay, Cam Ranh Flower Resort Project, and Tourist Area Project. The Manna, Phat Dat Luxury Tourist Area Project…
The 2017 audit results of the State Audit on the management and use of land in the North Cam Ranh peninsula tourist area have shown that the content of residential land without residential units is not consistent with the Law on Land and Law. general plans. Accordingly, it is required to review and make calculations to adjust the planning in accordance with the provisions of law.
In fact, so far, out of dozens of resort projects in Bai Dai that have been licensed for investment and granted land use right certificates, in addition to some that have not yet been constructed, many projects have been completed. acceptance and put into operation. For example: Fusion Maia Nha Trang Resort; Selectum Noa Resort Cam Ranh; Golden Bay Cam Ranh; Mövenpick Resort Cam Ranh; Radisson Blu Resort Cam Ranh; Vinpearl Resort & Spa Long Beach; The Arena Cam Ranh, Alma Resort Cam Ranh…
Also among them, at some projects such as: Vinpearl Resort & Spa Long Beach Nha Trang, Golden Bay Cam Ranh, etc., the customers who bought the products were granted certificates of the right to use and property on the land. Some other projects such as Mövenpick Resort Cam Ranh have been completed, tested for fire prevention and fighting and put into use in 2019. However, in contrast to the fact that the investor has been granted a land use right certificate. and assets on land, secondary investors have not yet been granted a “red book”, causing difficulties for businesses and investors.
In order to solve the conflicts in the market, Khanh Hoa Provincial People’s Committee has proposed: projects in Bai Dai have been granted certificates according to the type of residential land without forming residential units but have not yet been built. will be converted to commercial and service land. For projects that have been built and completed, tested, accepted and put into use, a Certificate of land use rights and properties on land will be issued according to the current state of residential land in the countryside, with a long-term use term for houses. secondary investment (customers buy villas, resort apartments).
According to lawyers, this is a possible solution, both harmonizing the interests of the parties, and removing difficulties for businesses, avoiding lawsuits and affecting the business investment environment. This is also a move to remove bottlenecks in the market to revive the tourism and resort industry after being heavily affected by Covid – 19, in line with the policy and orientation of the Government to recover the post-Covid-19 economy. proposed by the Party and State.
Government gets involved
In the year 2019 – 2020, after the inspection of large-scale projects in many localities, including Khanh Hoa, including projects at Bai Dai, at the Notice of Inspection Conclusion No. 1919/TB-TTCP dated On November 4, 2020, the Government Inspector pointed out that “residential land not forming residential units” is not yet regulated in current law.
However, the Government Inspector gave a positive assessment: “Types of tourist villas, resort villas, and resort apartments (Khanh Hoa calls “residential land without forming residential units”) has been developing. increasingly strong in Khanh Hoa and many other localities, the investment in construction of this type has brought about a number of effects such as: strongly attracting investment capital flows, promoting the speed and scale of tourism development. tourism, services; contributing to creating jobs, increasing state budget revenue … “.
Since then, the Government Inspectorate proposed to the Prime Minister to direct ministries, central branches and localities to focus on: “encouraging investment attraction, developing tourism and services; not obstructing investment capital flows. Investment has been growing strongly, without causing sudden disturbances affecting investment attraction in localities where it has been implemented; minimizing the possibility of risks for investors; having solutions synchronous settlement, but first of all, perfecting the current legal system”.
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