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Tuesday, July 27, 2021

Gov’t Inspectorate proposes PM stop licensing new condotel projects

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HCMC – As many localities have granted licenses to a series of condotel projects that may pose high risks of disputes and lawsuits, the Government Inspectorate has proposed the prime minister stop licensing these new projects.

Besides, the Government Inspectorate also proposed the Government leader direct the relevant ministries and localities to temporarily suspend licensing tourist villas and resort villas, Thanh Nien Online reported.

The suspension of granting licenses to condotel projects should stay until a legal framework for these projects is completed in line with the prime minister’s directive, according to the Government Inspectorate.

To complete the legal corridor, the Ministry of Construction has been told to cooperate with other ministries and departments to study and present obstacles facing condotel projects to the prime minister to eliminate the difficulties.

The construction of and investment in condotels have created some positive effects, including attracting a strong cash flow, promoting the development of tourism, creating jobs and increasing local budgets.

However, the development of these projects has posed multiple obstacles, mainly related to legal issues such as land use rights and the condotel ownership of secondary investors.

Condotels are not recognized as residential apartments, so buyers are not issued ownership certificates. No prevailing regulations governing condotels are found in the Land Law, the Law on Real Estate Business or the Civil Code.

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