THE 2023 LAW ON REAL ESTATE BUSINESS PROMOTING DOCUMENT

THE 2023 LAW ON REAL ESTATE BUSINESS PROMOTING DOCUMENT

THE 2023 LAW ON REAL ESTATE BUSINESS PROMOTING DOCUMENT

DOCUMENT PROMOTING

THE 2023 LAW ON REAL ESTATE BUSINESS

The 2014 Real Estate Business Law No. 66/2014/QH13, adopted by the 13th National Assembly during its 8th session on November 25, 2014, regulated most issues related to the real estate business sector, including the business of existing and future houses and constructions, the business of land use rights, real estate service business, transfer of all or part of real estate projects, real estate business contracts, transactions for the sale, lease, lease-purchase of houses and constructions, transfer of land use rights, real estate training, and state management of real estate business.

The 2014 Real Estate Business Law contributed to establishing an investment environment for real estate business, creating a public, transparent, open, healthy, and sustainable real estate market. It maximized convenience for investors, enterprises, and citizens to access diverse real estate to meet their business, usage needs, and practically serve life, effectively utilize and mobilize maximum domestic and foreign resources to meet needs and serve socio-economic development.

After more than eight years of implementing the 2014 Real Estate Business Law, the real estate business sector has achieved significant accomplishments. The legal provisions of the real estate business have laid a legal foundation to promote the development of the real estate market, notably contributing to transparency, sanitizing the real estate market, standardizing traded real estate goods, and enhancing the professionalism of real estate business entities and real estate service businesses.

Thanks to the mechanisms and policies for real estate business that have been promulgated, hundreds of thousands of real estate businesses and tens of thousands of individual real estate brokers now have clear, transparent, convenient, and effective legal corridors for operation. This has contributed to promoting the country’s economic and social growth and development.

However, alongside the achievements mentioned above, the real estate business sector has also encountered several issues and obstacles, causing difficulties in implementation. It is necessary to amend and supplement legal regulations to ensure they meet the practical demands of real estate business activities and align consistently and uniformly with newly enacted or upcoming laws.

Therefore, to address the existing shortcomings and limitations of the 2014 Real Estate Business Law, and to meet the practical demands of real estate business activities, it is essential to institutionalize the Party’s policies in the field of real estate business. This includes Resolution No. 11-NQ/TW dated June 3, 2017, from the 12th Central Committee’s fifth session on completing the socialist-oriented market economy institution; the documents from the 13th National Congress of the Party; the 10-year socio-economic development strategy for 2021-2030 and the 5-year socio-economic development plan for 2021-2025; Resolution No. 26-NQ/TW dated May 19, 2018,

from the 12th Central Committee’s seventh session on focusing on building the cadre contingent at all levels; and Resolution No. 18-NQ/TW dated June 16, 2022, on “continuing to innovate, perfect institutions, policies, improve the effectiveness and efficiency of land management and use, creating a driving force to bring our country to become a high-income developed country.” Thus, amending the 2014 Real Estate Business Law is extremely necessary.

  1. THE STRUCTURE OF THE 2023 LAW ON REAL ESTATE BUSINESS

The 2023 Law on Real Estate Business consists of 10 chapters with 83 articles, an increase of 4 chapters and 1 article compared to the 2014 Law on Real Estate Business.

  1. Chapter I. General Provisions: includes 11 articles (from Article 1 to Article 11). It regulates (1) the scope of adjustment, (2) subjects of application, (3) terminology explanations, (4) principles of real estate business, (5) types of real estate and real estate projects allowed for business, (6) disclosure of information about real estate and real estate projects allowed for business, (7) state policies on real estate business investment, (8) prohibited acts in real estate business, (9) conditions for organizations and individuals engaged in real estate business, (10) forms and scope of real estate, constructions and land use rights in real estate projects, transfer of real estate projects by domestic organizations and individuals, overseas Vietnamese, and foreign-invested economic organizations, and (11) requirements for real estate projects.
  2. Chapter II. Business of Existing Houses and Constructions: includes 10 articles (from Article 12 to Article 21). It regulates (1) existing houses and constructions allowed for business, (2) principles of business of existing houses and constructions, (3) conditions of existing houses and constructions allowed for business, (4) entities allowed to purchase, lease, and lease-purchase existing houses and constructions from real estate enterprises, (5) implementation of transactions of existing houses and constructions, (6) responsibilities of real estate project investors, (7) rights of sellers, lessors, and lessors-purchasers of existing houses and constructions, (8) obligations of sellers, lessors, and lessors-purchasers of existing houses and constructions, (9) rights of buyers, lessees, and lessees-purchasers of existing houses and constructions, and (10) obligations of buyers, lessees, and lessees-purchasers of existing houses and constructions.
  3. Chapter III. Business of Future Houses and Constructions: includes 6 articles (from Article 22 to Article 27). It regulates (1) future houses and constructions allowed for business, (2) principles of business of future houses and constructions, (3) conditions of future houses and constructions allowed for business, (4) payment in the sale and lease-purchase of future houses and constructions, (5) guarantees in the sale and lease-purchase of future houses, and (6) the handover of future houses and constructions.
  4. Chapter IV. Business of Land Use Rights with Technical Infrastructure in Real Estate Projects:

Comprises 3 sections:

Section 1: General Provisions: includes 6 articles (from Article 28 to Article 33). It regulates (1) forms of business of land use rights with technical infrastructure in real estate projects, (2) requirements for conducting business of land use rights with technical infrastructure in real estate projects, and (3) obligations of the parties in transferring, leasing, and subleasing land use rights with technical infrastructure in real estate projects.

Section 2: Transfer of Land Use Rights with Technical Infrastructure in Real Estate Projects to Individuals for Self-Built Houses: includes 4 articles (from Article 31 to Article 34). It regulates (1) conditions for land with technical infrastructure in real estate projects to be transferred for individuals to self-build houses, (2) requirements for parties transferring land use rights with technical infrastructure in real estate projects to individuals for self-building houses, (3) rights and obligations of the transferor of land use rights with technical infrastructure in real estate projects to individuals for self-building houses, and (4) rights and obligations of the transferee of land use rights with technical infrastructure in real estate projects to individuals for self-building houses.

Section 3: Transfer, Lease, Sublease of Land Use Rights with Technical Infrastructure in Real Estate Projects to Organizations: includes 4 articles (from Article 35 to Article 38). It regulates (1) conditions for land with technical infrastructure in real estate projects to be transferred, leased, or subleased to organizations, (2) requirements for parties transferring, leasing, and subleasing land use rights with technical infrastructure in real estate projects to organizations, (3) rights and obligations of the transferor, lessor, and sublessor of land use rights with technical infrastructure in real estate projects to organizations, and (4) rights and obligations of the transferee, lessee, and sublessee of land use rights with technical infrastructure in real estate projects to organizations.

  1. Chapter V. Transfer of Real Estate Projects: includes 5 articles (from Article 39 to Article 43). It regulates (1) principles for the transfer of entire or part of real estate projects, (2) conditions for the transfer of entire or part of real estate projects, (3) authority to approve the transfer of entire or part of real estate projects, (4) procedures for the transfer of entire or part of real estate projects, and (5) rights and obligations of the parties in the transfer of entire or part of real estate projects.
  2. Chapter VI. Real Estate Business Contracts: comprises 2 sections:

Section 1: Types of Real Estate Business Contracts and the Use of Real Estate Business Contracts: includes 5 articles (from Article 44 to Article 48). It regulates (1) contracts in real estate business, (2) the use of contracts in real estate business, (3) the main contents of contracts in real estate business, (4) transaction prices in real estate business, and (5) payments in real estate business.

Section 2: Transfer of Real Estate Business Contracts: includes 4 articles (from Article 49 to Article 52). It regulates (1) the transfer of contracts for the sale and lease-purchase of houses and constructions, (2) conditions for transferring real estate business contracts, (3) rights and obligations of the parties involved in the transfer of real estate business contracts, and (4) procedures, processes, and documentation for the transfer of real estate business contracts.

  1. Chapter VII. Real Estate Service Business and Training, Refresher Courses, and Certification for Practicing Real Estate Services: comprises 4sections:

Section 1: Real Estate Exchanges: includes 8 articles (from Article 53 to Article 60). It regulates (1) principles of organization and operation of real estate exchanges, (2) establishment and registration of real estate exchanges, (3) conditions for the operation of real estate exchanges, (4) activities of real estate exchanges, (5) rights of real estate exchanges, (6) obligations of real estate exchanges, (7) rights and obligations of organizations and individuals participating in real estate transactions at real estate exchanges, and (8) management of real estate exchanges.

Section 2: Real Estate Brokerage: includes 5 articles (from Article 61 to Article 65). It regulates (1) conditions for organizations and individuals engaged in real estate brokerage services, (2) real estate brokerage activities, (3) brokerage fees and commissions, (4) rights of real estate brokerage service enterprises and individual brokers, and (5) obligations of real estate brokerage service enterprises and individual brokers.

Section 3: Real Estate Consultancy and Management: includes 3 articles (from Article 66 to Article 68). It regulates (1) principles and scope of real estate consultancy and management services, (2) conditions for organizations and individuals engaged in real estate consultancy and management services, and (3) rights and obligations of parties in real estate consultancy and management services and related parties.

Section 4: Training, Refresher Courses for Real Estate Brokerage Practice and Operation of Real Estate Exchanges; Issuance of Real Estate Brokerage Practice Certificates: includes 2 articles (from Article 69 to Article 70). It regulates (1) requirements for training and refresher institutions for real estate brokerage practice and operation of real estate exchanges, and (2) examinations and issuance of real estate brokerage practice certificates.

  1. Chapter VIII. Construction and Management of Housing and Real Estate Market Information and Database Systems: includes 6 articles (from Article 71 to Article 76). It regulates (1) the information system on housing and the real estate market, (2) IT infrastructure and software systems for managing, operating, and exploiting the information system on housing and the real estate market, (3) databases on housing and the real estate market, (4) construction, management, and operation of the information system on housing and the real estate market, (5) exploitation of the information system on housing and the real estate market, and (6) funding for construction, management, operation, and exploitation of the information system on housing and the real estate market.
  2. Chapter IX. State Management of Real Estate Business: comprises 2 sections:

Section 1: Real Estate Market Regulation: includes 3 articles (from Article 77 to Article 79). It regulates (1) principles for regulating the real estate market, (2) measures for regulating the real estate market, and (3) authority for regulating the real estate market.

Section 2: Contents and Responsibilities of State Management of Real Estate Business: includes 2 articles (from Article 80 to Article 81). It regulates (1) the contents of state management of real estate business and (2) the responsibilities of state management of real estate business.

  1. ChapterX. Implementation Provisions:includes 2 articles (from Article 82 to Article 83). It regulates (1) the effectiveness of implementation and (2) transitional provisions.
  2. SOME NEW CONTENTS OF THE 2023 LAW ON REAL ESTATE BUSINESS

The 2023 Law on Real Estate Business aims to promptly institutionalize the Party’s guidelines and the State’s policies in the development and strict management of the real estate market. It seeks to perfect mechanisms and policies to ensure the healthy, sustainable, and smooth operation of the real estate market, synchronizing the market for land use rights, labor market, and real estate market. This law aims to ensure the real estate market develops in a stable, healthy, public, and transparent manner.

The law revises and perfects the provisions of the 2014 Law on Real Estate Business to fit the actual situation, addressing existing issues and limitations, ensuring constitutionality, and maintaining consistency and synchronization between the 2023 Law on Real Estate Business and other related laws.

  1. Regarding the scope of the Law

To clearly delineate its scope from other related laws, the 2023 Law on Real Estate Business specifies cases not governed by this law. These include the sale of houses, constructions, and the transfer of land use rights by organizations that are dissolving, bankrupt, or splitting.

It also governs the activities of credit institutions, foreign bank branches, debt management and asset exploitation companies of credit institutions, and asset management companies of Vietnamese credit institutions. These entities are established and operate according to the laws governing credit institutions and are involved in selling houses, constructions, transferring land use rights, and transferring real estate projects used as collateral to recover debts, as stipulated by the laws on credit institutions and related laws on handling secured assets.

  1. Regarding the types of real estate and real estate projects allowed for business

The 2023 Law on Real Estate Business has revised and supplemented the regulations regarding the types of real estate and real estate projects allowed for business to be more specific, including:

(i) Existing houses and future houses;

(ii) Existing constructions and future constructions, including constructions designed for educational, medical, sports, cultural, office, commercial, service, tourism, accommodation, industrial purposes, and constructions with mixed-use functions;

(iii) Portions of floor area in existing constructions and future constructions, including constructions designed for educational, medical, sports, cultural, office, commercial, service, tourism, accommodation, industrial purposes, and constructions with mixed-use functions;

(iv) Land use rights with technical infrastructure in real estate projects;

(v) Real estate projects.

Additionally, the law has revised and supplemented regulations regarding land use rights with technical infrastructure in real estate projects and real estate projects.

  1. Regarding the disclosure of information about real estate and real estate projects allowed for business

The 2023 Law on Real Estate Business has revised and supplemented regulations to enhance the transparency, safety, and healthiness of real estate business activities. Article 6 of the 2023 Law on Real Estate Business stipulates the responsibility of real estate business enterprises to disclose information about real estate and real estate projects before putting them into business.

  1. Regarding the conditions for organizations and individuals engaged in real estate business

The 2023 Law on Real Estate Business has codified several provisions of the current decree concerning the conditions for organizations and individuals engaged in real estate business. It has also supplemented regulations on the conditions for real estate business enterprises through real estate projects to have minimum equity and to ensure the ratio of credit debt and corporate bond debt to equity.

The law supplements regulations for organizations and individuals selling houses, constructions, or portions of floor areas in constructions not for business purposes or selling, leasing, lease-purchasing houses, constructions, or portions of floor areas in constructions below a small-scale level.

  1. Regarding the policies on the business of existing and future houses and constructions

The 2023 Law on Real Estate Business introduces several new points regarding the policies on the business of existing and future houses and constructions, such as:

– Supplementing regulations on the types of existing and future houses and constructions allowed for business.

– Adding provisions on the principles and conditions for the business of existing and future houses and constructions, such as the requirement for information on existing and future houses and constructions allowed for business to be disclosed as stipulated by the 2023 Law on Real Estate Business, and conditions for portions of floor area in future constructions allowed for business.

– Introducing a new regulation that real estate project investors are only allowed to collect a deposit of no more than 5% of the sale or lease-purchase price of houses, constructions, and portions of floor area in constructions from the depositor when the houses or constructions meet the conditions for business according to the 2023 Law on Real Estate Business.

– Revising and supplementing regulations on guarantees in the sale and lease-purchase of future houses, providing clear and strict guidelines on the responsibility of project investors to implement guarantees, the rights of customers to choose whether to have or not have guarantees from project investors, and the responsibility of guarantee banks in issuing guarantee letters to those who have signed contracts for the purchase or lease-purchase of future houses.

– Regulations on the conditions for portions of floor area in future constructions allowed for business.

  1. Regarding the transfer of land use rights with technical infrastructure in real estate projects to individuals for self-built houses and the transfer, lease, and sublease of land use rights with technical infrastructure in real estate projects to organizations

Regarding the transfer of land use rights with technical infrastructure in real estate projects to individuals for self-built houses and the transfer, lease, and sublease of land use rights with technical infrastructure in real estate projects to organizations, the 2023 Law on Real Estate Business codifies several provisions of existing decrees and supplements regulations to ensure legal clarity, strictness, and feasibility for the business of land use rights, such as:

– Regulations on the conditions for land with technical infrastructure in real estate projects to be transferred for individuals to self-build houses and to be transferred, leased, and subleased to organizations.

– Requirements that before transferring land use rights with technical infrastructure in real estate projects to individuals for self-building houses, the project investor must send a written notice to the provincial state management agency on real estate business about the land use rights meeting the conditions for transfer.

– Regulations on the requirements, rights, and obligations of organizations receiving the transfer of land use rights with technical infrastructure in real estate projects in investing and constructing projects on the transferred land.

  1. Regarding the transfer of entire or part of real estate projects

Regarding the transfer of entire or part of real estate projects, the 2023 Law on Real Estate Business supplements, codifies, and amends some provisions of existing decrees and the 2014 Law on Real Estate Business to ensure legal clarity, strictness, and feasibility for transferring entire or part of real estate projects, such as:

– Removing the requirement for a Land Use Rights Certificate for the project or part of the project being transferred. It adds regulations on the conditions for the transferring investor, including having a decision to allocate land, lease land, or permit the change of land use purpose to implement the project from a competent state agency, and having completed all financial obligations related to the land of the project, including land use fees, land rental fees, and related taxes, fees, and charges (if any) to the State.

– Amending and supplementing regulations for cases where the transferee of the entire or part of the project is an economic organization with foreign investment capital. After obtaining the transfer approval decision from the competent state agency and the parties have signed the transfer contract, the land-related procedures must be carried out according to the land laws.

– Adding regulations for cases where the Prime Minister authorizes the Provincial People’s Committee to decide on the transfer of part of a real estate project for projects under the Prime Minister’s authority to approve investment policies.

  1. Regarding contracts in real estate business

Regarding contracts in real estate business, the 2023 Law on Real Estate Business has supplemented more detailed regulations on the types of real estate business contracts and the use of these contracts. It mandates that real estate project investors and real estate business enterprises must disclose real estate business contracts as stipulated by the Law on Real Estate Business before applying them and has added provisions on payment through real estate business contracts via banks.

  1. Regarding real estate exchanges and real estate brokerage

Regarding real estate exchanges and real estate brokerage, the 2023 Law on Real Estate Business adds regulations that real estate exchanges must submit their files to the provincial state management agency on real estate business at their head office location for an operating license before commencing operations.

It also introduces a regulation that individuals practicing real estate brokerage must meet the condition of practicing within a real estate exchange service enterprise or a real estate brokerage service enterprise.

  1. Regarding policies for building and managing housing and real estate market information and databases

Regarding policies for building and managing housing and real estate market information and databases, the 2023 Law on Real Estate Business has codified several provisions of Decree No. 44/2022/ND-CP dated June 29, 2022, by the Government on the construction, management, and use of housing and real estate market information systems to ensure legal clarity, strictness, and feasibility for building and managing housing and real estate market information and databases. It also ensures connection and data sharing with the national land database and databases of ministries, sectors, localities, and related agencies.

  1. Regarding policies for regulating the real estate market

Regarding policies for regulating the real estate market, the 2023 Law on Real Estate Business has added new regulations on real estate market regulation, including principles for regulating the real estate market, measures for regulating the real estate market, and the authority for regulating the real estate market.

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

You can also download the .docx version here.

Rate this post

“The article’s content refers to the regulations that were applicable at the time of its creation and is intended solely for reference purposes. To obtain accurate information, it is advisable to seek the guidance of a consulting lawyer.”

LEGAL CONSULTING SERVICES

090.252.4567
HÃY CLICK ĐỂ LẠI SĐT CHÚNG TÔI SẼ GỌI NGAY CHO BẠN MIỄN PHÍ

NT INTERNATIONAL LAW FIRM