The Law on Real Estate Business was issued in 2014 and took effect from July 1, 2015. After nearly 8 years of implementing the Law on Real Estate Business 2014 and its guiding documents, in addition to the achieved results, the law on real estate business has also shown shortcomings and limitations that need to be amended and supplemented.
Current regulations do not require real estate transactions to be paid through banks. According to delegates, this leads to tax evasion, negativity, and corruption in transactions.
Recently, when discussing some controversial issues in the draft Law on Real Estate Business (amended), many National Assembly deputies proposed that when amending the law this time, the State should introduce a policy requiring non-cash payments for real estate transactions, ensuring the goal of preventing corruption.
At the 6th session of the 15th National Assembly, which took place on October 31, Deputy Chairman of the Judiciary Committee Nguyen Manh Cuong (National Assembly Delegate of Quang Binh) proposed that when amending the law this time, the State should introduce a policy requiring non-cash payments for real estate transactions to ensure the implementation of the goal of preventing corruption and negativity.
"For large transactions such as real estate transactions, the State needs to implement a policy requiring cashless payments," said the Vice Chairman of the Judiciary Committee.
Sharing the same view, Mr. Trinh Xuan An (Standing Member of the National Defense and Security Committee, National Assembly Delegate of Dong Nai) also proposed that all real estate transactions must be paid through banks, not just the part of business owners and investors. That is, all transactions of sale, transfer or lease between individuals but of a business nature must also be paid through banks.
“We have made significant progress in implementing cashless payment transactions, I suggest we continue to revolutionize,” Mr. An said.
Previously, speaking at the discussion of the draft Law on Real Estate Business (amended) at the 5th session held on the afternoon of June 23, National Assembly member Pham Van Thinh (National Assembly delegation of Bac Giang province) said that the draft Law should stipulate that the payment method for real estate transactions must be via bank transfer because this is not difficult to do. Payment via bank in the economy is popular and convenient.
In addition, according to delegate Thinh, the project on cashless payment for the period 2021-2025 has been issued by the Government, which includes amending legal documents in the direction of cashless payment in areas with large transaction values such as real estate...
"The government and localities have also regulated and implemented non-cash payments nationwide for the collection of tuition fees for general education, environmental sanitation service fees, electricity and water bills," said delegate Thinh.
Therefore, delegate Thinh said that there is no reason to explain why there is no mandatory regulation on non-cash payments for real estate transactions.
In addition, the regulation on payment via bank is also a form of protecting the interests of the parties involved when a dispute occurs. Because in reality, when real estate transactions are not conducted through the floor, that is, only the transfer contract is certified by a notary, there are still risks for both parties when a dispute occurs.
"Therefore, payment data via banks will be an important document to determine the responsibilities and obligations of related parties when disputes and transfers of land use rights occur. In particular, the regulation of payment via banks also contributes to effectively preventing tax losses when the value of real estate transactions is large...", Mr. Thinh said.
According to economic expert, Dr. Nguyen Tri Hieu, currently, cash is freely traded, many people bring suitcases of cash to buy real estate without being controlled. However, no one knows where that money comes from, whether it is legal or illegal. When "dirty" money is used to invest in real estate, it will be "laundered" into "clean", legal money".
Mr. Hieu said that when making payments for real estate transactions through banks, the monetary security agency can trace the origin and flow of money, and detect money laundering in unusual transactions. Even "dirty" money may not be spent if the bank requires a declaration of origin when transferring money to the bank.
Mr. Hieu said that in the US, the government does not limit the form of payment for real estate. However, if a real estate purchase is made using cash of $10,000 or more, the seller must declare this to the management agencies. This helps the management agencies grasp the source of the money, which can serve as a basis for currency investigation when necessary.
Banks in the US are connected to each other, helping to detect the phenomenon of depositors evading the law, dividing the amount of money to deposit in many different bank branches.
According to leaders of some real estate businesses, many individuals or businesses may disagree with the regulation that transactions must go through banks because it directly affects their interests. But this is a common trend in the world.
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