On 1st September 2010, the Ministry of Construction issued Circular No. 16/2010/TT-BXD providing detailed guidelines for the implementation of Decree 71/2010/ND-CP dated June 23, 2010 of the Government regarding house ownership, housing development, management of use of houses, house-related transactions and state management of houses.
One of noteworthy points is the guidance on raising capital for investment in building commercial houses. Accordingly Article 8 of Circular 16 allows investors to raise capital from banks, credits organizations, investment funds, corporate bonds, secondary investors and other organizations or individuals. However from the effective date of Decree No. 71/2010/ND-CP, each individual or household within a city or province may contribute capital in the form of product sharing once with only one house allocated.
Model related contracts are attached with the Circular.
This Circular takes effect 45 days after the singing date.
by Lawyers of Bizconsult Law Firm