Real estate individuals are not allowed to buy

The Government has just issued Decree 96 detailing a number of articles of the Law on Real Estate Business, effective from August 1.

Real estate traders are not allowed to buy and sell more than 10 times a year.

Pursuant to Article 7 of this Decree, individuals conducting small-scale real estate business shall comply with specific requirements and real estate business activities not for business purposes or on a small scale shall be regulated.

Specifically, individuals doing small-scale real estate business are not required to establish an investment project according to the provisions of the law on construction and housing.

However, no more than 10 transactions per year and each contract cannot exceed 300 billion VND. In case of one transaction per year, the value is not counted.

Organizations that sell or lease houses, construction works or part of the construction floor area not for business purposes are also limited in the number of sales and must declare and pay taxes.

Thus, this is a new point compared to the previous one because the old regulation did not specify the conditions for individuals to do small-scale real estate business. Meanwhile, the new regulation has specifically limited the number of transactions and the value of the contract.

The 2023 Law on Real Estate Business stipulates that individuals doing small-scale real estate business do not have to establish a business but must declare and pay taxes. Similarly, organizations that sell or rent houses, construction works or part of the construction floor area not for business purposes are also limited in the number of times they buy and sell. They also do not have to declare and pay taxes.

During the period of 2020-2022, the real estate market experienced a local land fever, with prices in many places being pushed too high. Many investors rushed to buy land. However, land prices then turned to decrease, and transactions slowed down.

However, the Vietnam Real Estate Brokers Association said that recently, land transactions in the suburbs have begun to "heat up", with more investors going "land hunting".

Land auctions in some localities have recorded a sharp increase in the number of applications recently, with successful bids 20% to 10 times higher than the starting price.

From August 1, real estate brokers must have a practice certificate.

Decree 96 also limits the conditions for practicing real estate brokerage. From August 1, brokers must have a practice certificate and operate in a trading floor, real estate brokerage company or real estate consulting and management company. This means that individuals are not allowed to practice as freelance brokers as in previous years.

Source: https://nld.com.vn/ca-nhan-buon-bat-dong-san-khong-duoc-mua-ban-qua-10-lan-mot-nam-196240805120319669.htm