The question of “Is condotel eligible for a land use right certificate?” is always one of the top concerns of real estate investors. Decree 10/2023/ND-CP has made adjustments related to the granting of books for condotels, did you know? Don’t worry because today Tuong Phat Land will update the latest information on this issue. Let’s follow along!
1. What is the “2 in 1” real estate model – Condotel?
Before answering the question “Is condotel eligible for a land use right certificate?”, let’s learn more about this type of real estate to have a more specific view. What is Condotel? Condotel is a noun combined from “Condominium – apartment” and “Hotel – hotel”, meaning a hybrid apartment model with a resort hotel.
The special feature of condotel is that it can be used as a place to live but can also be rented out like a hotel to make a profit. Usually, condotel is promoted in tourist areas, resorts with a large source of customers to optimize exploitation efficiency and create attractive revenue over time.
Although designed like an apartment, the condotel ownership mechanism has some differences such as:
- Built and developed on commercial land, not residential land, so the ownership period is limited, specifically 50 years (can be extended depending on the planning).
- Operating in the form of a profit commitment, the investor is the operator and shares revenue with the owner. This model provides owners with a passive income stream while ensuring professional management and stable occupancy rates.
- The owner cannot register a household registration like when owning a normal apartment, and permanent or temporary residence registration is also limited.
So, is condotel eligible for a land use right certificate? Before deciding to invest in this type of real estate, buyers should find out the detailed information in the content below!
2. Unveiling the truth: Is condotel eligible for a land use right certificate?
Is condotel eligible for a land use right certificate? The answer is yes, but certain conditions must be met and the normal pink book must not be issued. Specifically, according to Decree No. 10/2023/ND-CP (effective from May 20, 2023), the condotel model is officially granted a certificate of ownership of construction works for the purpose of tourist accommodation. However, this pink book is not issued permanently, usually for 50 years according to the provisions of the 2013 Land Law.
In addition, condotel must meet the conditions required by law, and during the period of use, the owner must comply with the correct purpose of use. In general, condotel is a potential type of real estate but also has many different factors compared to normal real estate. Before deciding to invest in this model, you should carefully check the legal regulations, ownership period and other factors of the project.
3. Conditions for a condotel to be granted a land use right certificate
Is condotel eligible for a land use right certificate? In 2025, will condotels be granted pink books and what are the necessary conditions? This is still a big question for investors. Because this model is very attractive and has high profit potential, but the legal regulations are not simple. Below are 4 notes that Tuong Phat Land has compiled for those who are or are about to own a condotel!
3.1 The land for construction must be commercial – service land
Decree 10/2023/ND-CP has indicated that condotels will only be granted a certificate of ownership if and only if they are built on commercial – service land, not agricultural land or residential land as usual. That means, when registering for ownership certificates, you need to clearly state the purpose of use as commercial.
3.2 Compliance with the law
To determine “Is condotel eligible for a land use right certificate?”, the investor must comply with the law on real estate business as well as ensure the following three factors:
- The condotel project must have a valid construction permit and be in accordance with local planning.
- The project must meet construction safety standards when under construction.
- The project must be operated for the correct purpose as registered, the owner must not arbitrarily turn the condotel into a house.
If you buy a condotel from someone else, please pay attention to these things to avoid losing money or, more troublesome, encountering complicated legal risks.
See more: Choosing the floor when buying an apartment – High or low?
3.3 Fulfilling financial obligations
Not only with this form, any real estate before being granted a certificate must also meet financial obligations including land use fees, land tax, registration fees. In addition, the owner must also complete the financial obligations of the construction project and pay maintenance fees according to regulations when operating the project.
Moreover, the developer must ensure that all contractual agreements with buyers are legally binding and aligned with real estate business laws. Any violations or discrepancies in legal documentation could delay or even prevent the issuance of the certificate, affecting the investor’s ownership rights and long-term investment security.
3.4 Learn about the 2013 Land Law
According to the provisions of the 2013 Land Law, there are two cases that determine whether a condotel is granted a pink book: having land use papers and not having a land use certificate. If there is a certificate, the owner does not have to pay money but only needs documents such as a decision to buy or lease, a transfer contract and a land use right certificate. If there is no certificate, you need to pay additional fees according to regulations.
In short, before investing in a condotel, you should carefully consider is condotel eligible for a land use right certificate along with the specific ownership period and local regulations. Tuong Phat Land hopes that the information in the above article will help you have a more specific view of this type. Please contact us immediately for more detailed advice!
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