On behalf of the National Assembly Standing Committee, Chairman of the National Assembly's Economic Committee Vu Hong Thanh presented a summary report on a number of major issues regarding the reception, explanation, and revision of the draft Law on Real Estate Business (amended).
Regarding deposits in the business of housing and future construction works (Clause 5, Article 23), some opinions agree with option 1. Accordingly: "Real estate project investors are only allowed to collect deposits from customers when the housing and construction works have met all the conditions for being put into business and have conducted transactions in accordance with the provisions of this Law".
Meanwhile, some opinions agree with option 1 but propose to stipulate a maximum deposit of 5% of the selling price or lease-purchase price. Some opinions agree with option 1 and propose to stipulate a maximum deposit rate as stipulated by the Government but not exceeding 10%. Some opinions agree with option 1 and propose to stipulate a maximum deposit rate of 15%. Some opinions agree with option 1 and propose to stipulate more specific regulations. Some opinions agree with option 2 and propose to reduce the maximum deposit rate to 5%.
Mr. Vu Hong Thanh said that to ensure the true nature of the deposit and at the same time limit risks for the buyer and lessee, who are often the weaker party, the draft Law is revised in Clause 5, Article 23 as follows: “Real estate project investors are only allowed to collect deposits of no more than 5% of the selling price, lease-purchase price of houses, construction works, and floor area of construction works from customers when the houses and construction works have met all the conditions for putting into business according to the provisions of this Law. The deposit agreement must clearly state the selling price, lease-purchase price of houses, construction works, and floor area of construction works”.
Regarding the conditions of future housing and construction works put into business (Article 24), the National Assembly Standing Committee proposed that the Government stipulate in the Decree detailing the Law on Real Estate Business that the provincial-level state management agency for real estate business is responsible for checking the conditions of housing put into business and responding in writing to the investor about housing that is eligible for sale or lease-purchase, and is responsible for the issued document. The written response from the provincial-level state management agency for real estate business is a mandatory condition for trading in future housing.
For construction works with functions serving tourism and accommodation purposes, these types of construction works are not residential, mainly for business purposes, not for the purpose of creating accommodation conditions for people according to the 2013 Constitution. The 2014 Law on Real Estate Business does not stipulate procedures for checking conditions before putting into business for construction works in general and construction works with functions serving tourism and accommodation purposes in particular.
The additional requirement of the provincial real estate business management agency to check the conditions creates additional administrative procedures compared to current regulations. The Government has also agreed on this content. Therefore, the draft Law has removed the provision in Clause 5, Article 24; at the same time, the Government is requested to direct ministries, branches and localities to strengthen inspection, examination and supervision and have solutions to protect the rights of the people.
The Law on Real Estate Business takes effect from January 1, 2025, ensuring policy consistency with the draft Law on Housing.
The draft Law on Real Estate Business (amended) consists of 10 chapters with 82 articles, regulating real estate business, rights and obligations of organizations and individuals in real estate business and state management of real estate business.
This Law does not apply to the following cases: Agencies and organizations selling houses, construction works, transferring land use rights due to bankruptcy, dissolution, separation; transferring ownership of houses, construction works, land use rights due to merger, consolidation according to the provisions of law.
Agencies, organizations, and units that sell, transfer, or lease real estate that is public property according to the provisions of law on management and use of public property. Organizations and individuals that sell houses, construction works, or transfer land use rights according to decisions of courts or competent state agencies when resolving disputes...
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