According to the Department of Housing and Real Estate Market Management (Ministry of Construction), based on the requirements of apartment building management in the new context and problems in the renovation and reconstruction of the current run-down apartment buildings, the results In line with international experience, the Ministry of Construction has proposed two options to amend the policy on apartment ownership term.
The Ministry of Construction said that it has carefully calculated the interests of the people, ensuring that the interests of the owners are in harmony with the development in general.
The first option stipulates the ownership term according to the use term of the work. When the work is degraded, the State will inspect and renew it if it is still usable, or demolish and rebuild it when it is not safe for the life and property of the users, which means the termination of the right to use. own. However, the owner may still be resettled on the spot or relocated to another place when the old location is planned for public works, security and defense works.
Option two is that the apartment ownership term is determined according to the land use term for apartment construction in accordance with the Land Law. Currently, the Land Law 2013 is also being revised and supplemented.
This option can go in two directions. If the Land Law (amended) still maintains the current permanent land use term, the apartment ownership term will be as long as the Housing Law.
If the Land Law (amended) stipulates the term of land use for apartment building, the ownership term will be determined according to the land use term. When it expires, the State will base on the revised Land Law to handle apartments that do not meet quality standards.
In fact, the proposal to own an apartment with a term has been proposed since 2011 and has been repeated many times but has not been implemented. To further clarify the issues surrounding this story, Lawyer Tran Tuan Anh, Director of Minh Bach Partnership Law Firm gave some opinions.
Lawyer Tran Tuan Anh, Director of Minh Bach Partnership Law Firm.
Dear lawyer, as you know, the new proposal of the Ministry of Construction on the story of apartment ownership with a term. According to research, this proposal has been made since 2011 and has been repeated many times but has not been implemented yet. According to the lawyer, what are the barriers that prevent this proposal from being implemented?
Lawyer Tran Tuan Anh: The Ministry of Construction’s proposal to own an apartment with a term cannot be implemented due to many reasons:
Firstly, the regulation that all apartment buildings have a useful life will create inconsistencies in the application of legal regulations. Clause 1, Article 99 of the Law on Housing 2014 stipulates: “The useful life of an apartment building is determined based on the grade of construction work and the quality inspection conclusion of the provincial housing management agency where the shared house is located. According to the provisions of Clause 2 of this Article, the People’s Committee of the province shall allocate funds to conduct housing quality inspection” . Point c, Clause 3, Article 49 of Decree 43/2014/ND-CP guiding the implementation of the Land Law stipulates :Apartment owners are granted certificates of land use rights and ownership of houses and other land-attached assets for the common-use land area specified at Point a of this Clause for a stable and long-term term. ; The area of the apartment is determined according to the apartment purchase and sale contract” .
Thus, at present, ownership of condominiums is attached to land use rights and ownership of apartments as well as land use rights for the common area, which is a stable and long-term right. The regulation of ownership of condominiums with a definite term will create conflicts when people still have the right to use the land but no longer have ownership rights to the assets on the land.
Secondly, in order to ensure the standards of construction quality, the cost of building a condominium with a term will not be too different from that of an apartment building with stable and long-term ownership. Therefore, apartment prices may not change too much, not guaranteeing the purpose of reducing housing prices today.
Third , Vietnamese people’s mentality is the desire to own a house in a stable way and consider housing as a great asset. The fact that people have term ownership rights to all types of condominiums has essentially turned people into long-term tenants. This regulation will further push up the price of houses with long-term stable ownership.
With the latest proposal and plan from the Ministry of Construction, how do you view this proposal with the goals set by the Ministry of Construction? According to the lawyer, this proposal will have positive and negative impacts on people, businesses, and the real estate market.
Lawyer Tran Tuan Anh: The goal set by the Ministry of Construction when formulating this regulation is to lower the cost of apartments, creating conditions for people to have the right to own houses more easily. The positive side of this form is that it can diversify forms of home ownership in the market, create more options for people and investors, and expect to lower housing prices; and at the same time resolve conflicts between people and management agencies when the apartment buildings are degraded, forced to be renovated and dismantled.
In addition, this regulation will facilitate the making of land use planning and plans by State management agencies in the future as well as can partially support the process of relocation of people living in the area. degraded apartments in big cities.
However, besides the above positive aspects, if this proposal is applied in practice, it will also cause many negative impacts on people, businesses and the real estate market.
For businesses, this regulation will significantly reduce the market’s demand for condominiums due to the preference for houses with long-term ownership, causing supply to exceed demand. difficulties, while the cost to build the apartment has not changed significantly.
For people, on the one hand, they are afraid to buy apartments with a useful life, on the one hand, the price of houses with long-term ownership will be pushed up very high because the demand for this type of property far exceeds the supply. Therefore, it will be even more difficult for them to buy their home.
For the real estate market, this regulation will cause an imbalance between housing supply and demand in the market, creating a fear of buying apartments, creating pressure on infrastructure when there is not enough land for housing. Build houses on land to meet market demand.
According to the lawyer, can this new proposal be implemented in the current context or will it stop as before? If you support the ownership of an apartment for a limited time, what issues should you pay attention to when implementing, sir?
Lawyer Tran Tuan Anh: Although this new proposal has many positive effects, however, I think that it cannot be applied right now but should be applied in the future, when the level of economic development – When society reaches a certain level, people no longer attach great importance to the mentality of owning stable and long-term housing, and are no longer afraid of apartment buildings with a useful life.
The most important thing to keep in mind when putting this proposal into practice is the readiness of the market, which is at the core of people’s psychology. Only when people are more open-minded about apartments with a shelf life, supply and demand in the market will not be imbalanced, encouraging real estate businesses to invest in this type of housing. this.
When implementing the proposal for apartment ownership with a fixed term, it is necessary to synchronously amend the provisions of the Land Law, the Housing Law and other relevant laws to avoid creating conflicts when applying the law. the law. At the same time, the law should also have separate regulations on taxes, fees, land use fees and other favorable conditions to promote the development of this type of housing.
There is an opinion that, in case of granting a pink book with a definite term, the tax, fee and land use levy policy should be lower than that of long-term ownership, what do you think about this view?
Lawyer Tran Tuan Anh: When implementing the ownership of an apartment with a definite term, it is inevitable that the law should also have its own regulations on tax, fee, land rent, etc. for apartments with a useful life. use. Condominiums with a useful life have a shorter lease period, are more disadvantaged in terms of market psychology than houses with a long life, while the construction costs of the two types These houses are similar.
Therefore, to create conditions for this apartment building to compete with houses with a stable and long-term use term, it is necessary to reduce taxes, fees and land use fees.
According to the lawyer, how should a solution be “reasonably reasonable”, harmonizing the interests of the parties?
Lawyer Tran Tuan Anh: When stipulating the issuance of pink book of apartment ownership with a definite term, the legislator needs to carefully calculate to ensure the interests of the apartment owner as well as the interests of the owner. invest.
Although Article 99 of the Law on Housing 2014 stipulates that in case the condominium ownership period expires or is severely damaged, in danger of collapse, or unsafe for occupants, the provincial management agency must organize the quality inspection of the works.
In case the apartment still ensures the quality and safety for the owner, it will continue to be extended and used.
In case the expired apartment is no longer of sufficient quality and safety, the new apartment building will be demolished, renovated and rebuilt. At this time, people have the right to continue to resettle on the spot, buy after paying the difference in cost for a newly built apartment, or have the right to enjoy resettlement in another area or receive money if the apartment building has to be built. demolish to build other structures.
It is clear that the law also provides for possible cases to ensure the rights of people who own limited-term apartment buildings. However, how to deploy it so that the interests of the parties are guaranteed and reasonable, it is clear that there needs to be a process of propagating and disseminating the law so that people understand and support it. People who own an apartment building with a term of 50 – 70 years will be empty-handed after the time limit expires.
In addition, it is necessary to develop mechanisms and policies to reduce taxes, fees, and land use fees for investors as well as for people when participating in buying condominiums with a term to ensure the price story. Seeing the benefits of buying an apartment with a term compared to a house on the ground, the real estate market on owning an apartment with a term ensures stability and liquidity.
Thank you for sharing your lawyer!
Source: CafeF
Source: Vietnam Insider