The real estate market is in a quiet period due to epidemics, many investors are ready to cash in waiting for the opportunity to hunt for cheap land. However, customers can lose nothing if they are in a hurry and are eager for profits but “pour money” into “ghost” projects. To minimize this risk, buyers need to identify the following 4 signs of an ineligible project:
1. Inadequate project legal documents
A land plot project with a complete legal document cannot lack one of the following important documents:
– Certificate of business registration of the investor: Review the business license of the investor, note information about the business field, construction function and investment of real estate projects of the enterprise. there.
– A document showing the project’s ground land area assigned by a competent state agency.
– Detailed planning 1/500 (for projects larger than 5ha) or detailed planning of the ground 1/500 (for projects with size less than 5ha). These plans must be approved by the competent authority. The 1/500 detailed planning must show construction criteria such as population, land use, technical infrastructure, social infrastructure, spatial organization, architecture, infrastructure works, architecture. detailed design / structure of each land lot, environmental assessment. Through the 1/500 detailed planning, the investor can visualize the overall project plan, locate the works, the basic design as well as the relationship between the planned works. with external elements of the plan such as: entrance gates, paths, fences …
– A competent agency’s letter of approval for the investment policy (if the project has a total investment in infrastructure of more than 15 billion). Accordingly, the Department of Construction will evaluate the following factors: investor capacity, land fund origin, land planning, consultation with relevant departments (technical infrastructure such as traffic, electricity, water supply and drainage …), then submit to the Provincial People’s Committee for approval of the investment policy.
– Construction permits granted by competent State agencies to investors for new construction, repair, renovation and relocation of works. The main content of the permit is the information such as: Name and address of the investor, name of the project under the project, project location, red line boundary, construction boundary …
2. The investor has not completed the construction of the infrastructure
a vacant lot divided into lots
Checking if the investor has completed the construction of project infrastructure is also a way for the buyer to legal assessment of that land. Artwork: Internet
According to Clause 2, Article 41 of Decree 43/2014 / ND-CP, one of the conditions for the project investor to transfer the land use right in the form of subdivision, sale of land is to complete the construction investment. infrastructure construction.
Specifically, “infrastructure including service works, technical infrastructure works, social infrastructure works according to the approved detailed construction planning 1/500; ensure the connection with the common infrastructure system of the area before transferring land use rights to the people to build houses by themselves; ensuring the provision of essential services including electricity supply, water supply, water drainage, waste collection ”.
Therefore, the buyer needs to check the project owner’s investment in the construction of infrastructure before signing the contract, to avoid the risk of encountering the investor bypassing the law, land for sale first, infrastructure built later.
3. The investor has not yet fulfilled financial obligations related to the project
Buyers need to find out by themselves or request the investor to provide documents proving the fulfillment of financial obligations related to the land plot project such as: land use fees, land rent, taxes related fees. land (if any)… If the investor has not fully paid these amounts, the project is ineligible for transfer. More importantly, the tax fee debt also shows the investor’s lack of financial capacity, inexperience and business reputation, so buyers should avoid putting their trust and “pouring money” into that project. .
4. The land is in dispute
According to the current regulations in the 2013 Land Law, when wishing to transfer land use rights, users need to prove that the land is not in dispute. Therefore, this is also an important criterion that buyers should consider when investing in the land, specifically to check whether the land of the project is having any problems with planning, disputes or not. Investors can check whether the land lot is in dispute by verifying the information at a competent authority, using online planning information lookup software or soliciting information from a broker. , local people.