Thursday , September 29 2022

Tourism real estate properties remain in legal limbo

 

Tourism real estate projects such as condotels are mostly developed in localities with tourism potential. — Photo bnews.vn

HCM CITY — Experts have called for clarifying the legal status of tourism real estate properties such as condotels, tourism villas and shophouses to safeguard stakeholders’ benefits, helping revive the tourism sector.

Nguyễn Văn Quyền, chairman of the Việt Nam Bar Association, said the legality of these properties had to be made clear but the legal framework remained inadequate, creating difficulties and inconsistencies in management, worrying both investors and developers.

There are around 150 developments with 20,000 condotels and 5,000 villas in 15 provinces and cities across the country, many of them completed and sold but facing problems related to legality, according to the chairman.

According to Dr Cấn Văn Lực, member of the National Monetary and Financial Policy Advisory Council, tourism real estate properties have not been mentioned in the Vietnamese Land Law and thus are not eligible for a certificate of ownership.

The products are currently traded under ‘capital contribution contracts’ and others, which do not guarantee legality.

This also causes a risk for credit institutions.

He said the Government should call on the National Assembly to issue a decree to remove obstacles while waiting for the Land Law, Housing Law and Real Estate Business Law to be amended.

“The most important aspects are product definition, purpose, technical standards, and ownership.”

It is important to have clear criteria for each type of tourism property and for common areas in apartment buildings, basements and share of maintenance costs, he added.

Dr Nguyễn Văn Đính, vice chairman and general secretary of the Việt Nam Real Estate Brokers Association, said the Government should issue a circular to solve the immediate legal problems faced by tourism properties to safeguard the benefits of investors.

Phan Trung Lý, a former chairman of the National Assembly’s Law Committee, said however, “It is difficult to promulgate such a circular due to a lack of a legal framework.”

Instead, he said, the Government could ask the National Assembly to issue a “special resolution” to mitigate the difficulties faced by developers and buyers.

Tourism properties are a major segment of the real estate market in large cities due to a rising middle class looking to tap the income potential they might offer.

According to the Việt Nam Real Estate Brokers Association, as of September last year the country had 239 tourism real estate projects with more than 114,097 condotels, 24,399 tourism villas and 30,899 shophouses. — VNS

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