On November 28, 2023, the National Assembly passed the Real Estate Business Law 2023. With the introduction of this Law, regulations on real estate business, rights and obligations of organizations and individuals in business are established real estate business and state management of real estate business. The Real Estate Business Law 2023 will take effect from 2025. Therefore, in 2024, the Real Estate Business Law 2014 remains effective. To learn about the outstanding new regulation of the Real Estate Business Law 2023 to prepare for its application next year, Viet An Law Firm would like to present the article below.
The real estate business is an important economic sector, playing a role in promoting socio-economic development, solving housing problems for people, and contributing to social stability. In recent years, Vietnam’s real estate market has made strong developments, positively contributing to the country’s socio-economic development. However, there are still some limitations in the process of implementing the provisions of the Real Estate Business Law 2014 as follows:
Therefore, the promulgation of the Real Estate Business Law 2023 to overcome the above shortcomings is extremely urgent, to contribute to the development of a healthy, stable, and sustainable real estate market.
To clarify the scope of regulation, the Real Estate Business Law 2023 has added regulations on cases of non-applicability or more specific regulations on types of real estate put into business in turn in Clause 2. Article 1, Article 5 of the Law on Real Estate Business 2023. Specifically, the new Law adds cases where the Law does not apply:
“2. This law does not apply to the following cases:
Specifically, Article 5 has added specific regulations on types of existing construction works and future construction works, including construction works with educational purposes, medical, sports, cultural, office, commercial, service, tourism, accommodation, industrial, and construction work with multifunctional service.
It can be seen that the Law on Real Estate Business 2023 also amends and supplements several contents compared to the Law on Real Estate Business 2014 to clarify and ensure openness and transparency of real estate business activities and avoid overlap and interference of the legal system.
In Article 6 of the Law on Real Estate Business 2023, instead of general regulations on real estate content as in the Law on Real Estate Business 2014, the new Law specifically stipulates cases required to fully disclose exact and accurate information about real estate projects; housing and construction projects formed in the future; available housing and construction projects; land use rights with technical infrastructure in real estate projects.
Unlike the previous Law, the provision here is supplemented that public information must be updated when there are changes.
According to the new regulations in Clause 5, Article 23 of the Law on Real Estate Business 2023, it is stated: real estate project investors are only allowed to collect a deposit of no more than 5% of the selling price, lease-purchase price of houses, construction works, construction floor area of a construction project from a customer when the house or construction project has met the conditions for being put into business according to the provisions of the Law.
The deposit agreement must clearly state the selling price, lease-purchase price of the house, the construction project, and the construction floor area of the construction project.
Housing and construction projects formed in the future can only be put into business when there is one of the documents on land use rights; construction permit; notice of construction commencement; and documents on acceptance of completed technical infrastructure construction.
The amendments and supplements to this regulation are intended to protect the interests of customers and limit the situation where real estate project investors mobilize capital when they are not qualified to put real estate into business.
According to Article 61 of the Law on Real Estate Business 2023, organizations and individuals providing real estate brokerage services must establish real estate service businesses and must meet the following conditions:
Before operating real estate brokerage services, the brokerage service enterprise sends information about the enterprise to the state management agency on real estate business at the provincial level where the enterprise was established for approval. Posted on the housing and real estate market information system.
Individuals practicing real estate brokerage must meet the following conditions:
The scope of real estate brokerage services specified in Article 62 includes:
In Article 63 of the Law on Real Estate Business 2023, it is stipulated that real estate brokerage remunerations and commissions are as follows:
According to the provisions of Article 82 of the Law on Real Estate Business 2023, this Law takes effect from January 1, 2025. The Law on Real Estate Business 2014 will expire from the date the Law on Real Estate Business 2023 takes effect.
Clients who need advice on regulations on real estate business law, housing law, enterprise law, and related amended decrees, please contact Viet An Law Firm to get the best support.
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