The two biggest legal bottlenecks of the real estate market have been removed, only waiting for the Land Law

Legal problems and legal regulations are the biggest bottlenecks in the real estate market.

According to real estate experts, many Laws, Decrees, and Circulars are governing the real estate market. However, the three Laws that have the strongest impact on the market are the Housing Law, the Real Estate Business Law, and the Land Law.

In 2023, the National Assembly passed the Law on Housing (amended) and the Law on Real Estate Business (amended), which will take effect from January 1, 2025, which is 1 year away from coming into effect.

The two biggest legal buttons of the real estate market have been drafted for the first time in the Land Law. — The two biggest legal bottlenecks of the real estate market have been resolved, only waiting for the Land Law. (Photo: ZN)

Commenting on the two newly passed Laws, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) commented that the new Housing Law is generally very suitable for practice, ensuring the consistency and uniformity of legal regulations. HoREA commented that the new Housing Law has the best quality in over 30 years.

Similarly, the new Law on Real Estate Business also has many breakthrough regulations, such as the legalization of regulations on tourism and resort real estate. Or new regulations related to the fact that investors must complete financial obligations regarding land before putting future real estate products into business.

Currently, only the Land Law is still in the process of reviewing, amending, and supplementing new regulations for completion.

The National Assembly was scheduled to vote on the revised Land Law on November 29. However, during the 6th session of the 15th National Assembly held at the end of November, the National Assembly said that the bill was not passed at this 6th session and would be moved to the nearest session.

Talking to reporters of the Journalist and Public Opinion Newspaper, Mr. Nguyen Thanh Tuan, a real estate expert, said: Compared to the Housing Law and the Real Estate Business Law that have just been passed, amending and adjusting the Land Law is much more difficult.

The Land Law overlaps with many Laws and Circulars in many different fields. In fact, the (old) Land Law promulgated in 2013 had many limitations and shortcomings. Therefore, in 2019, the Government submitted to the National Assembly a bill amending and supplementing a number of articles of the 2013 Land Law.

However, the Government then repeatedly requested to postpone the review of the draft law four times, before the National Assembly decided to include it in the 2022 law and ordinance making program.

In addition, some provisions in the Land Law have not been unified among the agencies that contributed opinions, such as the method of calculating land prices, or regulations related to land acquisition by the State.

“Therefore, having more time to study and amend a difficult law like the Land Law is necessary. Avoid the situation where right after passing, we have to discuss further amendments,” said Mr. Tuan.

Meanwhile, Mr. Le Hoang Chau, Chairman of HoREA, said that in the latest draft of the Land Law, there are 2 inappropriate provisions. Those are point b, clause 1, point a, clause 4 and clause 6, Article 128, related to the proposal to "allow the conversion of land use purpose to implement commercial housing projects must meet the condition that the person permitted by the State to convert the land use purpose has the right to use residential land or residential land and other land..."

Therefore, the Association proposes that it is necessary to amend and supplement Point b, Clause 1 and Clause 6, Article 128 of the Draft Land Law (amended) in the direction of allowing investors to negotiate on receiving the right to use "residential land" or "residential land and other land" or "land other than residential land" in accordance with land use planning, urban planning, construction, housing development programs to implement commercial housing projects, mixed housing projects and commercial and service business.

This creates conditions for investors, especially large real estate corporations and enterprises, to have the capacity to invest in developing housing projects and urban areas with large areas of up to tens, tens, hundreds, thousands of hectares, to have both synchronous traffic infrastructure, technical infrastructure, social infrastructure, and many urban utilities and services.

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