New regulations on real estate trading from August 1

According to the Law on Real Estate Business, from August 1, the deposit for buying a house must not exceed 5%, when signing a sales contract it must not exceed 30% and before handing over the house, up to 50% must be paid.

A project in Ha Dong district, Hanoi. This project has been behind schedule for more than a decade. It is worth mentioning that many customers have paid the investor 100% of the house purchase price. This is just one of many cases where home buyers face risks when they choose to buy houses in projects that have just started construction, also known as Future housing. It can be an apartment, a townhouse, or a villa.

From August 1st, Real Estate Business Law will take effect. Notably, there are many new regulations ensuring the rights of home buyers in projects, that is, types of housing built by investors and businesses. Housing projects formed in the future will help customers choose apartments or houses right from the beginning of the project, depending on their needs and budget. But there are also risks, especially in projects with weak investor capacity.

When buying a house in a project under construction, the payment will be divided into many installments, helping the buyer have time to accumulate or proactively arrange the source of money. With this type of housing, many regulations on payment have changed compared to before.

According to the new Real Estate Business Law, the deposit for buying a house must not exceed 5% of the apartment's value.

"The time has passed when we carry sacks or cars of money to buy a house. The law stipulates that buying a house from an investor requires a bank transfer. However, individual transactions are not necessarily mandatory. We just need to respect the provisions of the business law when transacting, and do it in accordance with the law," said Mr. Pham Duc Toan - Chairman of the Board of Directors of EZ Vietnam Investment Joint Stock Company.

For future housing, the new regulations will also help reduce the amount that buyers need to pay.

Mr. Pham Duc Toan - Chairman of the Board of Directors of EZ Vietnam Investment Joint Stock Company said: "According to the new law, the deposit must not exceed 5%, when signing the sales contract, it must not exceed 30% and before handing over the house, it is necessary to pay up to 50%. According to the old law, the payment must be up to 70%. This is convenient for home buyers, reducing the pressure on the amount of money needed to prepare".

Thus, for a house worth 5 billion, according to the old regulations, the buyer would have to pay 70%, or 3.5 billion VND, before receiving the house. But according to the new law, the buyer only needs to pay 50%, or 2.5 billion, reducing the pressure on the buyer and encouraging the investor to hand over the house on schedule to receive the remaining amount according to the contract.

"According to regulations, if the deposit exceeds 5%, it is a violation of the Law on Real Estate Business. However, investors have many different ways to circumvent it. They can request early payment, investors can have separate agreements, as a form of borrowing money for discount", said Mr. Pham Duc Toan - Chairman of the Board of Directors of EZ Vietnam Investment Joint Stock Company.

Over the years, on real estate market There has been a situation where the actual transaction price is different from the price stated in the contract. Normally, the price stated in the contract will be lower than the actual transaction price to reduce the taxes and fees that the parties have to pay. This not only causes a large loss of real estate transfer tax but also brings many risks to home buyers. However, from August 1, the Law on Real Estate Business has stipulated that individuals and organizations doing real estate business must record the correct actual transaction price in the sales contract and will be responsible when the price in the sales contract is different from the actual transaction price.

"New wind" for the real estate market

The real estate market will enter a new phase of development with more transparency, professionalism and standards from August 1.

The reporter’s experience has shown us that there are many stricter regulations to protect home buyers. However, the frank sharing of business representatives also shows that there may still be ways for investors to circumvent the law to mobilize capital from the people. Therefore, real estate investors are waiting for documents and detailed instructions on the implementation of the law, so that the application from August 1st will be smoother.

The stricter regulations of the Law on Real Estate Business are considered a breath of fresh air for the market. This breath of fresh air is expected to blow away the risks in the market over the past years such as incomplete project information disclosure, prolonged projects, abandoned projects, investors investing in the wrong place, losing money and getting sick. From there, it helps the market enter a new stage of development with more transparency, professionalism and standards.

Regarding transparency in providing project information and payment via bank, the representative of the investment legal department of Tran Anh Group said that the new Law on Real Estate Business will have great impacts, creating pressure for businesses to standardize all aspects of law, investment, and construction.

"Regarding the legal issues of the project, investors are required to standardize business forms as well as transaction contracts in compliance with regulations. There will be a more harmonious and equal balance between investors and people when trading these products," said Mr. Nguyen Tieu Lam, Head of Legal - Investment, Tran Anh Group.

Deposit collection is only allowed at a maximum of 5% or collection of money from customers before receiving the house is only allowed at a maximum of 50%. Compared to before, these regulations will limit capital mobilization from customers, create significant financial pressure, forcing businesses to change product development strategies and mobilize credit capital more effectively.

Mr. Nguyen Cong Binh - Deputy General Director, Hung Loc Phat Group shared: "This is also a pressure, and also a challenge for investors to focus more on capital. In my opinion, investors should invest "slowly but surely" when bringing products to the market, they must have full legal documents, we focus more on capital from credit institutions to support the project throughout".

According to lawyers, the new wind from the Real Estate Business Law helps the market filter out and limit real estate companies that are weak in capacity and investment resources.

"Recently, we have adjusted the law, we have limited all risks, negative developments to suit the new situation, and created trust for people to participate in that is transparency. And in the process of operating these new regulations, if there are any developments, I believe they will be adjusted promptly to clear the flow of the real estate market", Lawyer Nguyen Van Quynh - Hung Yen Law Office informed.

With the foundation of the new law, in the upcoming strategy, many real estate businesses are planning to prioritize the development of more social housing and affordable housing to meet the real housing needs of the majority of people.

With Land Law, The new Housing Law and Real Estate Business Law, which will take effect from August 1, are considered important milestones for the Vietnamese real estate market. Clearly, with the new regulations, businesses wishing to enter the market must have financial capacity, ensuring the rights of home buyers, and the real estate market will develop in a more transparent and sustainable direction.

Recently, Prime Minister Pham Minh Chinh signed and issued Official Dispatch No. 71 on key tasks and solutions to promote growth, control inflation, and stabilize the macro-economy in July and the third quarter of 2024. The Prime Minister requested ministries and agencies to complete and submit to the Government for promulgation of detailed Decrees and promulgate under their authority Circulars and guiding documents, ensuring the simultaneous effectiveness of the Land Law, Housing Law, Real Estate Business Law and a number of other laws.

Source: https://baoquangninh.vn/quy-dinh-moi-khi-mua-ban-nha-dat-tu-1-8-3310608.html