Real Estate Business Law 2023: Transparency, promoting sustainable market development

August 1, 2024, marks a major change in the Vietnamese real estate market when the revised Law on Real Estate Business officially takes effect. Quang Ninh - the locality with the 5th highest urbanization rate in the country is also implementing specific regulations to effectively implement this legal framework.

Thanks to the focus and priority on investment in synchronous infrastructure development, in recent years, Quang Ninh has been one of the localities with the best infrastructure index in Vietnam with 4 cities directly under the province and developed urban areas located in districts and towns. The strong development and growth of the economic scale with a record GRDP of 9 consecutive years of double-digit growth has made Quang Ninh real estate the most vibrant market in the North, developing relatively widely in many areas...

With the goal of soon bringing legal regulations into life, developing the real estate market healthily and strictly managing this market... implementing Official Dispatch No. 63/CD-TTg dated June 26, 2024 of the Government on accelerating the progress of construction and promulgation of documents detailing the implementation of the Law on Real Estate Business, the People's Committee of Quang Ninh province promptly directed the Department of Construction to preside over, collect opinions, and promulgate a number of specific regulations and contents of the Law to guide, apply, propagate and deploy in the province.

Comrade Nguyen Manh Tuan, Director of the Department of Construction, said: Based on the provisions of the law, guiding decrees and instructions of the Provincial People's Committee, the Department has advised the Provincial People's Committee to provide comments to the Ministry of Construction on the content of the decree and proactively draft specific regulations to collect comments from relevant units. According to feedback, it is initially noted that the revised Law on Real Estate Business has many new and important breakthrough contents to contribute to the goal of perfecting institutions and policies, and improving the effectiveness of state management. This contributes to the transparency and professionalization of real estate brokerage and transaction activities; ensuring the stable and healthy development of the real estate market...

Compared to the 2014 Law on Real Estate Business, the 2023 Law on Real Estate Business inherits and supplements adjustments in the direction of resolving difficulties, minimizing procedures, being public, transparent, and freely negotiating on the basis of respecting the rights and legitimate interests of the parties through contracts, without violating the prohibitions of the law. The new regulations, in addition to being consistent with the 2023 Housing Law and the 2024 Land Law, also attach the responsibility of State agencies in building a unified, synchronous, and specific real estate business legal system, creating a healthy legal corridor for real estate business activities.

Perspective of Ha Long City planning vision 2040.

Specifically, some new points: Not authorizing other organizations or individuals to sign deposit contracts, investors are only allowed to collect deposits of no more than 5% of the selling price, lease-purchase price of houses and construction works that have met all conditions for putting into business; reducing the payment amount in lease-purchase of future houses; individuals doing small-scale real estate business do not have to establish a business; project investors, real estate businesses, real estate service businesses receive payment according to the contract through a bank account; tightening the area where land use rights are transferred in the form of dividing lots, selling land... Along with that are some new changes in real estate brokerage business conditions such as: Organizations and individuals doing real estate brokerage services must establish a real estate service business, before operating, they must send business information to the state management agency on real estate business to post on the housing and real estate market information system; Real estate trading floors must obtain a Floor Operating License before operating; individuals practicing real estate brokerage must practice in a real estate service business enterprise...

The new law also adds prohibited acts to ensure consistency with the Civil Law, Investment Law, Land Law, Housing Law and to be consistent with practice such as: Strictly prohibiting falsification of documents, intentionally falsifying information about real estate, real estate projects put into business; transactions of land use rights, houses, and construction works that do not meet business conditions are still rampant in the market, leading to great difficulty in control...

In fact, in recent times, many real estate investors have committed illegal acts that have damaged the interests of the State and damaged customers who are organizations and individuals such as: tax evasion, signing illegal future real estate sales contracts, contracts with disproportionate rights and interests between the parties, violating contractual obligations such as handing over real estate on time, not ensuring construction quality, appropriating customers' capital... causing disputes, violating the law, market manipulation, prolonged lawsuits... not implementing the principles of equality before the law, equality and symmetry in rights and obligations of the parties to the transaction. This has caused confusion and greatly affected many individuals and organizations. Therefore, from August 1, 2024, the implementation of the new Law on Real Estate Business will contribute to preventing and minimizing the previous shortcomings.

The real estate market is considered one of the pillars of the economy, helping to concentrate resources and create fixed assets for the country. The development of the real estate market creates growth momentum for related industries (financial market, construction, construction material production, interior, labor, etc.), meeting the needs for housing and urban development, tourism, services as well as social infrastructure, etc. Therefore, the implementation of new legal regulations on real estate business is a practical and effective solution, stabilizing the macro economy, creating good growth momentum, especially in localities with developed urban areas and vibrant real estate such as Quang Ninh.

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