The land fund is getting less and less, so many big and small real estate projects are born to meet the needs of the people. From the perspective of an investor and looking for a good project or a place to live. Don’t miss learning about real estate project implementation process. Knowing the process and notes while the project is forming will help you avoid quite a bit of investment risk.
Table of Contents
The process of implementing a real estate project
Real estate projects will be capitalized by investors and implemented as a business model. Therefore, in order for a project to be formed, it will have to go through specific implementation steps. Below is a valid real estate project implementation process.
– Step 1: The investment policy will be approved in accordance with the provisions of the land law and the housing law.
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– Step 2: It is necessary to have a suitable land fund to be able to implement and deploy the project. The land fund can be formed through bidding, auction or acquisition of land use rights in accordance with the law.
– Step 3: The project investor must be recognized on the legal basis of the land law, housing law and circular decrees issued.
– Step 4: It is necessary to get approval of the detailed project construction planning table according to the planning law.
– Step 5: A decision on land allocation or declaration of land use purpose is required according to the decree and land law.
– Step 6: Perform financial obligations as prescribed in the 2013 land law.
– Step 7: Apply for a construction permit including reviewing the basic design and verifying the project construction design table.
Notes to avoid risks in the process of real estate project formation
Make sure all legal documents are complete
For investors, it is extremely important to ensure the legal elements and complete documents of the project. Legal factors are the foundation for the project to be built and completed smoothly. Project location issues; land lot value; capacity of the investor; power of attorney documents certifying the purchase of real estate, etc. You need to know and understand them well; This ensures all your rights in the future.
Besides, the papers proving the planning; specific design and architecture of the project;.. approval of local authorities and competent authorities is required. This is a proof that the project will be built and completed on time according to the investment commitment.
Follow up the construction process
Next, you need to pay attention and monitor the construction process of the project. Normally, for investors, you will pay money according to the project completion schedule and the initial commitment under the contract to the investor. Therefore, you have the right to monitor whether the progress of the project is completed according to the agreement or not; This ensures your interests and avoids being scammed by investors.
Ensure the construction works in accordance with the basic design approval of the state agency
It is extremely important to ensure that the construction work is in accordance with the basic design approval. Failure to do so may lead to a violation of the law and make it difficult to check and accept the work later.
This is the job of the investor, but from the perspective of the investor spending money. We need to make sure this is done right. Because it affects our investment results.
Not raising capital, using capital for improper purposes
There are many projects where the investor mobilizes capital and then uses the capital for the wrong purpose; They even cheated investors in the form of bonzy and then ran away. This is also a common risk of investors when contributing money to projects under construction. However, if you have an accurate source of investment information and a reputable investor, you do not have to worry about this.
Fulfill financial obligations to the State
Has the investor fulfilled his financial obligations to the state? This is one of the steps of the basic real estate project implementation process. It is necessary to make sure that they have fulfilled their obligations to the state; the new project can be implemented and completed on time. In fact, there are many investors who seek to circumvent the law and fail to fulfill their obligations. Leads to being unable to continue or being forced to stop; Many investors are insecure about their capital sources.
Above is the process of implementing real estate projects and some things investors should note. Hope to have brought you useful information about investing in real estate projects. Please continue to follow us to keep yourself updated with the latest market news. Hello and see you in the next article.
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