LAW ON HOUSING AND LAW ON REAL ESTATE BUSINESS 2025

LAW ON HOUSING AND LAW ON REAL ESTATE BUSINESS 2025

RELATIONSHIP BETWEEN THE PROVISIONS OF THE 2023 LAW ON HOUSING, THE 2023 LAW ON REAL ESTATE BUSINESS, AND OTHER LAWS

Tống Thị Hạnh

Director of the Legal Department – Ministry of Construction

Relationship between the 2023 Law on Housing and other laws:

– Investment Law;

– 2024 Land Law;

– 2023 Law on Real Estate Business;

– Bidding Law;

– Civil Code;

– Construction Law;

– Investment Law; …

Relationship between the 2023 Law on Real Estate Business and other laws:

– Construction Law;

– Investment Law;

– Urban Planning Law;

– 2024 Land Law;

– 2023 Law on Housing; …

The Law on Housing and its detailed regulatory documents include:

– Decree No. 95/2024/ND-CP dated July 24, 2024, detailing several provisions of the Law on Housing.

– Decree No. 98/2024/ND-CP dated July 25, 2024, detailing several provisions of the Law on Housing on the renovation and reconstruction of apartment buildings.

– Circular No. 05/2024/TT-BXD dated July 31, 2024, issued by the Minister of Construction, detailing several provisions of the Law on Housing.

– Decision No. 11/2024/QD-TTg dated July 24, 2024, on the standards for area and norms for interior equipment in official residences.

– Decree No. 100/2024/ND-CP dated July 26, 2024, detailing several provisions of the Law on Housing on the development and management of social housing.

– Legal documents issued by the People’s Councils and Provincial People’s Committees.

– Circulars issued by the Minister of National Defense and the Minister of Public Security, detailing several provisions of the Law on Housing in the Military/People’s Police forces.

Detailed Provisions Delegated to Local Authorities by the 2023 Law on Housing

Provincial People’s Councils:

Based on local conditions, Provincial People’s Councils issue mechanisms to support the implementation of social housing investment projects within their jurisdiction, in accordance with their authority and other relevant legal provisions (Point g, Clause 2, Article 85).

Provincial People’s Committees:

– Specify locations and positions where housing development projects must be implemented (Clause 4, Article 5).

– Set conditions for road infrastructure to allow fire-fighting vehicles to perform their duties at multi-story, multi-unit housing areas owned by individuals (Point c, Clause 3, Article 57).

– Define criteria for commercial housing investment projects that must allocate land for social housing or allocate an equivalent land fund outside the commercial housing project area in that urban area, or pay an equivalent amount in Type IV and V urban areas (Clause 3, Article 83).

– Regulate the framework of rent prices for social housing (Clauses 3 and 5, Article 87).

– Regulate the framework of rent prices for worker housing in industrial zones (Article 99).

– Establish procedures for coordinating the provision of housing information between competent authorities handling the issuance of Certificates and local housing management agencies (Clause 2, Article 120).

– Issue the framework of service charges for apartment building management and operation (Clause 7, Article 151).

The Law on Real Estate Business and its detailed regulatory documents include:

– Decree No. 96/2024/ND-CP dated July 24, 2024, detailing several provisions of the Law on Real Estate Business.

– Decree No. 94/2024/ND-CP dated July 24, 2024, detailing several provisions of the Law on Real Estate Business on the construction and management of information systems and databases on housing and the real estate market.

– Circulars issued by the Minister of Finance regarding the use of funds for building, investigating, collecting information, updating, maintaining, and operating information systems and databases on housing and the real estate market.

– Circular No. 04/2024/TT-BXD dated July 30, 2024, issued by the Minister of Construction, guiding the framework program for training and fostering knowledge for real estate brokerage, and operating real estate trading floors.

The Land Law and its detailed regulatory documents include:

– Decree No. 71/2024/ND-CP dated June 27, 2024, on land prices.

– Decree No. 102/2024/ND-CP dated July 30, 2024, detailing the implementation of several provisions of the Land Law.

– Decree No. 123/2024/ND-CP dated October 4, 2024, on administrative sanctions in the field of land.

– Decree No. 103/2024/ND-CP dated July 30, 2024, on land use fees and land rent.

– Decision No. 12/2024/QD-TTg dated July 31, 2024, on mechanisms and policies for employment and vocational training for those whose land is recovered.

– Decree No. 112/2024/ND-CP dated September 11, 2024, detailing regulations on rice cultivation land.

– Decree No. 115/2024/ND-CP dated September 16, 2024, detailing several provisions and measures for implementing the Bidding Law on selecting investors for projects using land.

– Decree No. 104/2024/ND-CP dated July 31, 2024, on the Land Development Fund.

– Decree No. 101/2024/ND-CP dated July 29, 2024, on basic land surveys; registration, issuance of land use rights certificates, and ownership of assets attached to land, and the land information system.

– Decree No. 88/2024/ND-CP dated July 15, 2024, on compensation, support, and resettlement when the State recovers land.

– Legal documents issued by the People’s Councils and Provincial People’s Committees.

– Circulars issued by the Ministry of Natural Resources and Environment.

Certain policies of the Law on Housing and the Law on Real Estate Business related to the Land Law and other laws:

1. Scope of regulation(Law on Housing, Law on Real Estate Business).
2. Construction planning, urban planning for implementing housing construction investment projects, and conditions for auction and bidding(Law on Housing, Land Law, Urban Planning Law, Construction Law).
3. Relationships between investors, project owners using land, construction project owners, and housing project owners(Law on Housing, Land Law, Investment Law, Bidding Law, Construction Law).
4. Land acquisition for implementing commercial housing construction projects, urban areas; permitting land use changes; agreements on acquiring land use rights; auctioning land use rights, bidding to select investors for projects using land(Law on Housing, Land Law, Bidding Law, Construction Law).
5. Land-related incentives for investors in social housing projects(Law on Housing, Land Law).
6. Payment of land use fees related to land funds for social housing construction, selling social housing according to market mechanisms (Law on Housing, Land Law and detailed regulatory documents).

6.1. Payment equivalent to the value of the land fund already invested in the technical infrastructure system for social housing construction.

6.2. Payment of land use fees by project investors when reselling social housing after 10 years, or by social housing buyers after a 5-year period.

7. Housing construction investment projects, real estate projects(Law on Housing, Law on Real Estate Business, Construction Law, Investment Law, Public Investment Law, and detailed regulatory documents).

7.1. Requirements for housing construction investment projects and housing development.

7.2. Requirements for real estate projects.

7.3. Certain notes when implementing the investment construction process and specific regulations for urban/housing construction investment projects.

8. Certain notes when violating construction order related to the issuance of construction permits, issuance of certificates of land use rights, ownership of assets attached to land.
9. Transitional handling.

1. Scope of regulation

2. Construction planning, urban planning for implementing housing construction investment projects, and conditions for auction and bidding

3. Relationship between investors– project owners using land– construction project owners, and housing project owners 

4. Land recoveryfor implementing commercial housing construction projects and urban areas; permitting land use changes; agreements on acquiring land use rights; auctioning land use rights; bidding to select investors for projects using land

(i) The 2013 Law on Land (amended and supplemented); The 2014 Law on Housing 

* The 2013 Law on Land (amended and supplemented):

 * The 2014 Law on Housing (amended and supplemented):

(ii) The 2024 Law on Land, The 2023 Law on Housing

The arrangement of land funds for housing development must comply with land laws (Law on Housing).

5. Land-Related Incentives for Social Housing Project Investors

(1) The 2014 Law on Housing, the 2013 Law on Land:

Amend and supplement regulations on support policies and incentives for investors in social housing construction to align with the Law on Housing and tax laws.

– Subjects: Investors who do not use the capital sources or forms specified in Clause 1, Article 53 of the Law on Housing (as amended and supplemented in the Public-Private Partnership Investment Law).

– Incentive policies: Unified application according to the Law on Housing and tax laws; certain support policies and incentives not specified in the Law on Housing and tax laws are abolished (such as a 70% reduction in value-added tax and corporate income tax rates for rental housing construction investments; allocating 20% of the total residential land area in social housing projects for commercial housing construction).

(2) The 2023 Law on Housing, The 2024 Law on Land:

The 2023 Law on Housing (Clause 2, Article 85), Decree No. 100/2024/ND-CP (Clause 5, Article 23): Land-related incentives include: 

(i) Exemption from land use fees and land rent for the entire project land area. Investors are not required to carry out procedures to determine land prices, calculate land use fees, and land rent exemptions, or to request exemption from land use fees and land rent, except as stipulated in (ii).

(ii) Allocation of up to 20% of the total residential land area within the project, which has invested in technical infrastructure systems, for investment in commercial, service, and commercial housing construction. Investors in social housing construction projects can account for these separately and cannot include the construction costs of commercial, service, and commercial housing works in the social housing cost. They are entitled to all profits from the commercial, service, and commercial housing areas. If investing in commercial housing, the investor must pay land use fees for the commercial housing construction area according to land law regulations.

If the detailed planning of the social housing construction project approved by the competent authority does not allocate a separate land fund for the construction of commercial, service, and commercial housing works within the project, the investor can allocate up to 20% of the project’s total housing floor area for commercial and service businesses. Investors in social housing construction projects can account for these separately and are entitled to all profits from the commercial and service business areas, without including their construction costs in the social housing cost.

(iii) If the investor transfers or contributes capital from the land area or the commercial and service business floor area as mentioned in (ii), they must pay land use fees and land rent according to land law regulations (Clause 10, Article 17 of Decree No. 103/2024/ND-CP).

The 2024 Law on Land (Article 157), Decree No. 103/2024/ND-CP (Clause 10, Article 17) stipulates:

(i) Using land for implementing social housing construction projects, worker accommodation in industrial zones, housing for the armed forces, and the renovation and reconstruction of apartment buildings according to housing law regulations.

(ii) For cases exempt from land use fees and land rent, there is no need to carry out procedures to determine land prices, calculate land use fees, and exempt land rent. Land users exempt from land use fees and land rent are not required to request exemption procedures.

(iii) In cases where domestic organizations have been exempted or reduced land use fees as prescribed by law, and now transfer, contribute capital with land use rights, or transfer investment projects associated with land use rights, the handling is as follows: 

– They must pay the State an amount equivalent to the exempted or reduced land use fees at the time of land allocation or land use purpose change, as prescribed in Point b, Clause 3, Article 33 of the Land Law, plus an additional amount corresponding to the period from the exemption or reduction to the date of transfer or capital contribution with land use rights, according to the late payment rate of land use fees under tax management laws at that time.

– The calculation of the exempted or reduced land use fees to be paid back to the State is carried out according to Articles 6 and 7 of Decree No. 103/2024/ND-CP, based on policies and land prices at the time of land allocation or land use purpose change.

…

6. Land Use Fee Payments Related to Land Funds for Social Housing Construction and Market-Mechanism Sales of Social Housing

6.1. Payment Equivalent to the Value of Land Funds Already Invested in Technical Infrastructure Systems for Social Housing Construction

1. The 2023 Law on Housing (Clause 2, Article 83)

In special, Type I, II, III urban areas, the Provincial People’s Committee decides that the investor of a commercial housing construction project must: 

– Use a portion of the residential land area within the project that has invested in technical infrastructure systems for social housing construction. 

– Allocate a land fund for social housing that has invested in technical infrastructure systems for social housing construction. 

– Pay an amount equivalent to the value of the land fund.

2. Decree No. 100/2024/ND-CP (Articles 17, 19)

– Ratio: 20% of the total residential land area (excluding existing residential land and resettlement land). 

– Timing of deciding on land fund allocation or payment: upon investment policy approval.

– Payment equivalent:

+ Amount payable: according to the laws on land use fees and land rent.

+ Time of fee calculation: at the time of investment in technical infrastructure systems.

Decree No. 103/2024/ND-CP on land use fees and land rent (Clause 1, Clause 5, Article 6)  

(i) In cases of paying an amount equivalent to the value of the 20% land fund, the equivalent amount the investor must pay is determined by land use fees calculated using the formula:

Land use fees = Land area for calculating land use fees x Land price for calculating land use fees 

In which:

– The land area for calculating land use fees is the portion of residential land in the commercial housing construction project that has invested in technical infrastructure systems for social housing construction.

– The land price for calculating land use fees is the specific land price approved by the competent authority for the portion of land already invested in technical infrastructure systems for social housing construction.

– The time of fee calculation is carried out according to the provisions of Decree No. 100/2024/ND-CP.

6.2. Payment of Land Use Fees for Investors When Reselling Social Housing After 10 Years/Buyers After 5 Years 

The 2023 Law on Housing (Articles 88, 89), Decree No. 100/2024/ND-CP (Articles 41, 42):

1. Investors of social housing projects for rent, after 10 years from the date of acceptance and putting into use, can sell under market mechanisms. Investors must pay land use fees according to land law, along with other taxes..
2. Buyers of social housing, after 5 years from the date of full payment for the house, can sell under market mechanisms:

– Sellers are not required to pay land use fees but must pay income tax according to tax law (except for individual housing).

– Sellers must pay 50% of the land use fees according to land law for cases where social housing is individual housing.

The time to calculate land use fees is at the time of recognizing land use rights according to land law.

Decree No. 103/2024/ND-CP:

1. Investors reselling social housing after 10 years according to housing lawsmust pay the State an amount equivalent to the land use fees that were exempted or reduced at the time of land allocation or land use purpose change, as stipulated in Point b, Clause 3, Article 33 of the Land Law, plus an additional amount corresponding to the period from the exemption or reduction until the transfer or capital contribution with land use rights, according to the late payment rate of land use fees under tax management laws at the time.

The calculation of the exempted or reduced land use fees to be paid back to the State is carried out according to Articles 6 and 7 of Decree No. 103/2024/ND-CP, based on policies and land prices at the time of land allocation or land use purpose change.

2. When selling individual social housing after 5 years according to housing laws:

– Land use fees are calculated using the formula:

Land use fees = Land area for calculating land use fees x Land price for calculating land use fees 

– The land area for calculating land use fees is the area recorded in the Land Use Rights Certificate and the certificate of ownership of assets attached to the land. 

– The land price for calculating land use fees is the land price in the Land Price Table.

– The time of calculating land use fees: according to the provisions of Decree No. 100/2024/ND-CP.

7. Housing construction investment projects, real estate projects

7.1. Requirements for housing construction investment projects; housing development

(i) General requirements for housing development:

– Must be in line with the National Housing Development Strategy, land use planning, land use plans, construction planning, urban planning, and local housing development programs and plans for each period, ensuring consistency in technical infrastructure and social infrastructure; housing development must be based on the efficient use of resources and must strengthen housing construction management.

– Must comply with housing laws; meet technical standards, construction quality standards for housing as prescribed by law, adhere to fire safety, architecture, landscape, sanitation, environment, and safety requirements during construction; must be able to respond to natural disasters and climate change; must use energy and land resources efficiently.

– In wards, districts, and cities within special urban areas, Type I, II, and III, investors of housing construction projects must build houses for sale, lease-purchase, and lease. For other areas, the Provincial People’s Committee, based on local conditions, determines the areas where investors must build houses for sale, lease-purchase,

and lease or may transfer land use rights in the form of subdivided land plots for individuals to build houses; in cases where investors are permitted to transfer land use rights for individuals to build houses, it must comply with the real estate business laws and land laws; in cases of auctioning land use rights to invest in housing construction projects according to the Land Law, investors must build houses for sale, lease-purchase, and lease. 

– Other conditions (Article 5 of the Law on Housing).

(ii) General Requirements for Housing Construction Investment Projects:

– Must align with the provincial housing development programs and plans that have been approved, comply with the content of the decided or approved investment policies, and meet the requirements stipulated in Article 5 of the Law on Housing; implementation must follow the approved detailed planning;

– Division of component projects (if any) and phased investments must be determined in the investment policy, feasibility study report, and construction investment decision according to the laws on investment, public investment, and construction;

– The approved project content must be fully implemented by the housing construction project investor; if there is a need to adjust the project content requiring an adjustment of investment policies, the housing construction project investor must complete the procedures for adjusting investment policies according to legal regulations before adjusting the project content;

– Acceptance and handover of housing, technical infrastructure works, and social infrastructure works must be carried out according to the provisions of the Law on Housing, construction laws, and other relevant laws, ensuring quality and safety in construction, operation, exploitation, and use of the works, meeting fire safety, environmental protection requirements, and for areas affected by climate change, meeting disaster prevention and climate change response requirements according to legal regulations;

– Other requirements (Clause 1, Article 33 of the Law on Housing).

(iii) Requirements for Housing Construction Investment Projects with Mixed-Use Purposes:

– Must meet the requirements in (ii);

– Clearly define the purposes for residential use, office, commercial, service, or other purposes in the investment project policy that has been decided or approved;

– In the approved project content, clearly define whether the functional areas can be separated or not; if the functional areas can be separated, the design and construction must distinctly separate the common equipment systems for each functional area and the common equipment systems for the entire mixed-use housing project to ensure operational management requirements after use.;

– Ensure consistency in the technical and social infrastructure systems both within and outside the project scope.

(iv) Requirements for Housing Area Construction Investment Projects, Urban Areas with Housing, Residential Infrastructure for Land Use Rights Transfer to Individuals for Self-Construction, and Mixed-Use Land Projects with Housing Construction:

– Must meet the conditions in (ii);

– Must have a complete technical infrastructure system and social infrastructure system that meets planning standards according to planning law and ensures connectivity with the area’s general technical infrastructure system;

– Must specify in the investment project policy the responsibilities for investment, construction, and management, and use of technical and social infrastructure works post-construction according to investment law, public investment law, and construction law;

– If land use rights transfer for individuals to self-build houses is permitted according to this Law and other relevant laws, the approved project content must clearly identify the areas and locations where housing construction is required and the areas and locations where land use rights can be transferred for individuals to self-build houses, or the entire project where land use rights transfer is permitted for individual self-construction.

(v) Other requirements (Articles 49, 53, 60, 81, 95, 105 of the Law on Housing and relevant legal regulations).

7.2. Requirements for Real Estate Projects

1. Real estate projects must comply with land use planning and land use plans.
2. Real estate projects must align with the approved planning according to the construction law and urban planning law.
3. The process and procedures for investing and constructing real estate projects must comply with the laws on planning, investment, land, construction, housing, and related laws.
4. Adherence to building permits in cases where building permits are required.
5. Real estate projects must be constructed according to the progress, planning, design, and within the project implementation period approved by the competent state authority.
6. For housing construction investment projects, in addition to meeting the requirements in points (1), (2), (3), (4), and (5), they must also meet the requirements as stipulated by housing laws.

7.3. Notes When Implementing the Investment Construction Process and Specific Regulations for Urban/Housing Construction Investment Projects

7.3.1. Preparation, Appraisal, and Approval of the Pre-Feasibility Study Report

REGULATIONS ON URBAN AREA CONSTRUCTION INVESTMENT PROJECTS

Contents of the Pre-Feasibility Study Report/Investment Project Proposal

Decree No. 15/2021/ND-CP:

Point c, Clause 4, Article 9:

For urban area and housing projects, it is necessary to explain how the investment project implementation meets the objectives, urban development orientation, and local housing development programs and plans for each period (if any); provide a preliminary structure of housing products and allocate land funds for social housing development; provide a preliminary plan for investment in and management of urban infrastructure within the project and its connection with the infrastructure outside the project scope for urban projects. 

Decree No. 31/2021/ND-CP:

Clause 3, Article 31:

Content as stipulated in Point d, Clause 1, or Point b, Clause 2, Article 33 of the Investment Law; preliminary phased investment plan ensuring synchronization; preliminary structure of housing products and allocation of land funds for social housing development; preliminary plan for investment in and management of urban infrastructure within and outside the project scope, proposing the portion of urban infrastructure that the investor retains for business investment, and the portion of urban infrastructure that the investor is responsible for transferring or proposes to transfer to local authorities for urban housing construction investment projects.

For urban area projects, if the construction law requires a pre-feasibility study report, the investor or the competent state authority may submit or use the pre-feasibility study report instead of the investment project proposal, proposing the portion of urban infrastructure that the investor retains for business investment, and the portion of urban infrastructure that the investor is responsible for transferring or proposes to transfer to local authorities.

Decree No. 11/2013/ND-CP:

– Article 36. Completion, transfer, and putting works into use. 

– Article 38. Transfer of administrative management. 

Decree No. 35/2023/ND-CP:

Clause 8, Article 4: 

A preliminary plan for management transfer in the urban area is a content of the investment project proposal or the pre-feasibility study report. The preliminary plan for management transfer in the urban area includes: proposing the portion of urban infrastructure that the investor retains for business investment, and the portion of urban infrastructure that the investor is responsible for transferring or proposes to transfer to local authorities; proposing management for the contents stipulated in Point b, Clause 1 of this Article, and any associated requirements or conditions (if any); proposing the receiving party for the transfer.

7.3.2. Preparation, Appraisal, and Approval of the Feasibility Study Report for Construction Investment 

– Article 54 of the 2014 Law on Construction.

– Point d, Clause 2: Housing construction investment projects and urban housing construction projects, in addition to the content specified in points a, b, c, and d of this Clause, must include information on housing types and the fulfillment of social housing requirements (if any).

For urban housing construction projects, an explanation of the plan to build synchronized technical and social infrastructure within the project and its connection to external technical and social infrastructure, and the plan for the transfer of works, must be provided. The Government provides detailed regulations on this point (Clause 2, Article 11 of Decree No. 15/2021/ND-CP).

Contents of the Feasibility Study Report for Construction Investment (for urban housing construction projects)

Law on Construction:

Point d, Clause 2, Article 54:

For urban housing construction projects, an explanation of the plan to build synchronized technical and social infrastructure within the project and its connection to external technical and social infrastructure, and the plan for the transfer of works, must be provided. 

Decree No. 15/2021/ND-CP:

Point đ, Clause 2, Article 11: 

For housing construction and urban area projects, the Feasibility Study Report for Construction Investment must clearly explain the following:

…

đ) Compliance with urban development orientation and approved urban development programs (if any); plan for constructing and completing technical infrastructure works before exploiting housing (if any), social infrastructure works, and other works within the project; plan and list of areas or works and public services to be transferred to the State (if any). 

Decree No. 11/2013/ND-CP:

– Article 36. Completion and transfer of works for exploitation and use. 

– Article 38. Transfer of administrative management. 

Decree No. 35/2023/ND-CP:

Clause 8, Article 4: 

The management transfer plan in the urban area is a content of the Feasibility Study Report for Construction Investment. The management transfer plan in the urban area includes: proposing the management of the contents stipulated in Clause 1 of this Article, any associated requirements or conditions (if any); proposing the time of transfer, the receiving party for the transfer, and the opinions of the proposed receiving party (if any); proposing the coordination with local authorities for the investment and construction of external technical infrastructure works and State technical infrastructure works passing through the project area; proposing the administrative management coordination before, during, and after the transfer.

7.3.3. Bàn giao công trình xây dựng

* Additional regulations for urban area construction investment projects (Point c, Clause 1, Clause 5, Article 124 of the 2014 Law on Construction as amended and supplemented):

– It is possible to hand over all or some of the project’s works for use, but before handing over, the construction must be completed to ensure synchronized technical and social infrastructure according to the investment phase and approved design, ensuring connection with the area’s general technical infrastructure, in line with the project’s content and approved planning.

– The investor is responsible for handing over technical infrastructure works, social infrastructure works, and other works as stipulated by the Government.

* Decree No. 35/2023/ND-CP adds regulations on conditions for putting works, work items into exploitation and use; handing over works, work items (for projects in urban areas):

– For works in urban area projects: the investor must complete the construction of works within the technical infrastructure system, social infrastructure system, and other works (if any) in the project according to the construction plan stated in the Feasibility Study Report. 

– Obtain an environmental permit/registration from the competent state authority according to environmental protection laws; other regulations.

8. SOME KEY POINTS TO CONSIDER WHEN THERE ARE VIOLATIONS RELATED TO CONSTRUCTION PERMITS, LAND USE RIGHTS CERTIFICATES, AND PROPERTY OWNERSHIP CERTIFICATES

8.1. Violations of Construction Order (Decree No. 16/2022/NĐ-CP on Administrative Penalties for Construction Violations) 

8.2. Issuance of Construction Permits; Certificates of Land Use Rights, Ownership of Property Attached to Land 

(1) The 2024 Law on Land

(i) Documents as a basis for issuing certificates:

– Construction Permit or Temporary Construction Permit for cases requiring a Construction Permit according to construction law. 

– Other documents specified in Article 148 and Article 149 of the Land Law.

(ii) For cases requiring a Construction Permit but lacking one, a confirmation from the district-level construction management authority that the house or construction work meets the conditions for existence as per construction law is required. 

(2) The 2023 Law on Real Estate Business

If the buyer or lease-purchaser has not been issued a certificate of land use rights or ownership of property attached to land as per land law, the seller or lease-seller cannot collect more than 95% of the contract value; the remaining value is payable when the competent state authority issues the certificate of land use rights or ownership of property attached to land to the buyer or lease-purchaser. 

(3) The 2023 Law on Housing

Within 50 days from the date of handing over the house to the buyer or from the date the lease-purchaser has fully paid according to the agreement, the investor must submit a dossier to request the competent state authority to issue a certificate to the buyer or lease-purchaser, except where the buyer or lease-purchaser voluntarily undertakes the certification procedures themselves.

8.3. Violations of Construction Order Regulations (for Investors) (Article 16, Decree No. 16/2022/ND-CP)

Violations of Construction Order Regulations (for Violations *)

For violations specified in Clauses 4, 6, 7, and 8, Article 16 of Decree No. 16/2022/ND-CP that are under construction (which qualify for a construction permit or construction permit adjustment, or construction design adjustment), in addition to being fined according to regulations, the following procedures under Article 81 of this Decree must be followed: 

– Step 1: The authorized person records the violation, orders the cessation of construction, and issues a penalty decision for the violating organization or individual.

– Step 2: The violating organization or individual completes the dossier requesting the issuance of a construction permit/construction permit adjustment/construction design adjustment, submits it to the competent state authority, and obtains these documents within 90 days (for projects), 30 days (for individual houses).

– Step 3: The competent state authority issues the construction permit/construction permit adjustment/construction design adjustment to the violating organization or individual.

– Step 4: The violating organization or individual presents the issued and approved construction permit/construction permit adjustment/construction design adjustment.

– Step 5: The authorized person inspects the current state of the construction, records the compliance of the current state with the construction permit/construction permit adjustment/construction design adjustment.

– Case 1: If the permit is compliant, the authorized person allows the violating organization or individual to continue construction.

– Case 2: If the violating organization or individual fails to present the construction permit/construction permit adjustment/construction design adjustment within the specified time in Step 2, or if the current state of the construction is not compliant with the permit in Step 5, the non-compliant construction or part of the construction must be demolished.

TRANSITION REGULATIONS

(1) Administrative violations in construction occurring before Decree No. 16/2022/ND-CP takes effect: 

– Violations that have concluded without an administrative violation record will be subject to the regulations effective at the time the violation ended.

– Ongoing or incomplete administrative penalty decisions shall continue to be enforced according to the issued penalty decisions or enforcement decisions. 

(2) Transition regulations for Clauses 2, 3, 4, and 5, Article 79 of Decree No. 139/2017/ND-CP effective from the date Decree No. 16/2022/ND-CP takes effect: 

(i) For construction deviations from the issued permit; construction without a permit when one is required; construction deviating from the approved design or planning, for cases exempt from construction permits, in addition to administrative penalties, the illegal gains must be surrendered as per Clause 9, Article 13, Decree No. 121/2013/ND-CP if the following 6 conditions are met:

(1) The violation occurred between January 4, 2008, and January 15, 2018, and was discovered post-January 15, 2018, or identified before January 15, 2018, with one of the following documents: administrative violation record, administrative penalty decision, or corrective measure decision;

(2) Does not violate construction boundaries;

(3) Does not affect adjacent structures.;

(4) Is not involved in disputes;

(5) Built on legally used land;

(6) Now conforms to construction planning approved by the competent authority.

(ii) Violations meeting conditions (1), (2), (3), (4), and (5) but not (6):

Violations discovered before January 15, 2018, documented with an administrative violation record, administrative penalty decision, or corrective measure decision, but for which the penalties and illegal gains have not been surrendered by January 15, 2018, shall be subject to demolition orders for non-compliant constructions as per Point d, Clause 11, Article 15 of Decree No. 139/2017/ND-CP, replacing the order to surrender illegal gains. 

(iii) Determining illegal gains follows Clause 3, Article 84 of Decree No. 16/2022/ND-CP.

(iv) Surrendering illegal gains based on the value ratio of unauthorized construction does not apply to individual housing construction cases.

(v) After administrative penalties and illegal gains are surrendered, and construction quality is verified, the competent state authority must confirm urban planning and architecture, issue or adjust construction permits, or adjust construction designs 

In addition to standard documents, applications for construction permits, permit adjustments, or design adjustments must include proof of fine and illegal gain surrender (if applicable).

Upon completing these procedures, the competent authority considers issuing ownership certificates for houses and constructions according to regulations.

9. TRANSITION HANDLING

9.1. Housing regulations

(i) The Law on Housing

– Transition regulations for housing development:

+ For housing construction investment projects and urban areas in the stage of selecting investors, if no investor selection document has been issued by August 1, 2024, the investor selection must be carried out according to the Law on Housing, except as specified in Point a, Clause 3, and Point d, Clause 5, Article 198 of the Law on Housing;

+ For social housing construction projects, projects for renovating and reconstructing apartment buildings that have been decided/approved for investment policy; investment project approval; project approval before August 1, 2024, the project investor continues to enjoy the incentive mechanism according to the content of the decided, approved, or approved documents, except in cases where new or higher investment incentives are prescribed, in which case the investor enjoys the new investment incentives for the remaining incentive period of the project;

+ In cases where multiple investors are concurrently approved for investment policy and investor approval, but the investor recognition procedures have not yet issued an investor recognition document before August 1, 2024, they must comply with the Law on Housing.

– Transition regulations for social housing policy:

+ Social housing construction projects that have been decided/approved for investment policy, investment decisions, project approval decisions, investment approval, and investor selection documents issued before August 1, 2024, continue to be implemented according to the content of the decided, approved documents, unless project policy or content adjustments are required according to investment law;

+ For commercial housing construction projects and urban areas that have been approved for investment policy, investment decisions, project approval decisions, investment approval before August 1, 2024, the project investor must allocate a portion of the residential land within the project that has invested in technical infrastructure systems for social housing construction according to the content of the decided, approved documents;

+ For commercial housing construction projects and urban areas that have been implemented but by August 1, 2024, the project investor has not yet allocated a portion of the residential land within the project that has invested in technical infrastructure systems for social housing construction, the project investor must continue this obligation according to the Law on Housing before August 1, 2024;

+For social housing construction projects in the stage of selecting investors without an investor selection document issued according to the Law on Housing before August 1, 2024, continue to apply according to the housing laws before August 1, 2024;

+ For cases where social housing sales must pay land use fees according to housing laws before August 1, 2024, but the land use fees have not been paid by August 1, 2024, continue to pay the fees according to housing laws before August 1, 2024.

(ii) Decree No. 95/2024/ND-CP

– In cases where housing construction projects are in areas not requiring national defense and security assurance according to the Ministry of National Defense and the Ministry of Public Security, but subsequently change to areas requiring such assurance:

+ The Provincial People’s Committee where the housing is located must inform the housing project investor about the change to ensure they cease renting, lease-purchasing, or selling housing to foreign organizations or individuals;

+ The Certificate Issuance Authority, in coordination with the provincial housing management authority, must notify foreign organizations or individuals who own the housing, allowing them to sell or gift the housing to domestic organizations, individuals, or overseas Vietnamese citizens;

+ Coordinate with the Ministry of National Defense and the Ministry of Public Security to determine the timeline for removing the housing owned by foreign organizations or individuals based on actual national defense and security needs in the area.

The removal, compensation for housing owned by foreign organizations or individuals subject to removal, and the procedures for removal must follow the policies and procedures for clearance, compensation, support, and resettlement as specified in land law. Housing after clearance is managed and used according to housing laws and public asset management and use laws. 

– Transition handling for land use rights transfer in the form of subdivided plots for individuals to build houses:

+ For housing construction projects in wards, districts, and cities within special, Type I, Type II, and Type III urban areas where the Provincial People’s Committee has issued documents identifying areas and locations allowed for transfer or has approved investment policies permitting transfer before August 1, 2024, continue to follow the identified documents or investment policy content.

+ If the competent authority has received the application but has not issued a document permitting transfer or approved investment policies by August 1, 2024, the regulations of the Law on Housing and Decree No. 95/2024/ND-CP apply. 

(iii) Decree No. 100/2024/ND-CP 

– Transition for monetary obligations for social housing in commercial housing projects:

Decree No. 100/2024/ND-CP:

For commercial housing construction projects under 10 hectares, where the investor was approved to fulfill social housing obligations by monetary payment before this Decree took effect but had not paid by the effective date, the investor must pay an amount equivalent to the land use fee value of the 20% residential land area with technical infrastructure investment, calculated according to land law at the time the competent authority issued the approval document.

Decree No. 103/2024/ND-CP:

If the commercial housing project was allowed by the competent State authority to pay an amount equivalent to the 20% land fund with technical infrastructure investment for social housing construction according to housing laws but had not calculated this amount by the effective date, the calculation, collection, and payment must follow this Decree’s regulations. If the amount was calculated according to the law before this Decree took effect, it must be collected and paid according to the calculated amount plus late payment interest or an equivalent amount, according to tax management laws.

– Transition for incentives for social housing project investors:

If the social housing construction project was decided or approved by the competent authority for investment policy; approved for investment project; or approved for the project before the 2023 Law on Housing took effect, the project investor continues to enjoy the incentives as per the decided, approved documents, unless new or higher investment incentives are prescribed by the 2023 Law on Housing and this Decree, in which case the investor enjoys the new incentives for the remaining incentive period of the investment project.

– Transition for land use fee payment for the sale of commercial business works, commercial housing in social housing projects eligible for incentives according to Decree No. 100/2015/ND-CP (amended and supplemented by Decree No. 49/2021/ND-CP, Decree No. 35/2023/ND-CP): NO payment of the exempted, reduced land use fees is required. 

9.2. Real estate business laws

– Transition regulations for transferring land use rights with technical infrastructure for individual housing construction (subdivided plots):

Decree No. 96/2024/ND-CP:

For real estate projects where the Provincial People’s Committee has issued documents approving or permitting the investor to transfer land use rights with technical infrastructure as subdivided plots for individuals to build houses according to the law before the Law on Real Estate Business takes effect, continue following the Provincial People’s Committee’s documents but must ensure compliance with Articles 28, 29, Clauses 1, 2, 3, 4, 5, 7, and 8 of Article 31, Article 32 of the Law on Real Estate Business, and Article 9 of this Decree.

If the real estate project investor has submitted an application to permit the transfer of land use rights with technical infrastructure as subdivided plots for individuals to build houses before this Decree takes effect, but without a document from the competent state authority, the investor is responsible for supplementing any missing documents according to the Law on Real Estate Business and this Decree (if any) for the competent state authority’s consideration. 

The 2023 Law on Housing:

For housing construction investment projects and urban areas where the Provincial People’s Committee has issued documents identifying areas and locations allowed for transferring land use rights for individuals to build houses according to the law, continue following those documents. 

9.3. Land laws

(i) The Law on Land:

– For investment projects that had investment policy approval or investor selection from a competent authority according to the laws on investment, housing, and bidding before July 1, 2014, but land has not been allocated or leased to the investor, and the project now conforms to the land use planning and plans,

the Provincial People’s Committee confirms compliance with the laws on investment, housing, and bidding at the time of issuing these documents and the delay in land allocation or lease is not the investor’s fault, then the project is exempt from land use rights auction and bidding for investor selection for projects using land according to this Law. The procedures, authority, and timeline for land allocation or lease follow this Law. 

– For investment projects where the investor was selected according to the laws on investment, housing, and bidding from July 1, 2014, to the effective date of this Law, but land has not been allocated or leased, and the project meets the conditions for land allocation or lease without auctioning land use rights according to the 2013 Land Law and relevant laws, and conforms to the land use planning and plans, continue the subsequent steps in the procedures for land allocation or lease to allocate or lease land to the investor according to this Law.

(ii) Decree No. 103/2024/ND-CP:

– In cases where land users eligible for land use fee exemption have not completed the procedures for exemption, land price determination, and exempt land use fee calculation before August 1, 2024, the tax authority transfers the dossier back to the land management authority for handling according to Clause 3, Article 157.

– Additional provisions . . .

If you need more consulting, please Contact Us at TNHH NT International Law Firm (ntpartnerlawfirm.com)

You can also download the .docx version here.