Through the Real Estate Business Law, buying a house on paper with a maximum deposit of 5%

On the morning of November 28, with 94.13% of delegates in favor, the National Assembly passed the amended Law on Real Estate Business, effective from January 1, 2025.

A new point in the draft law just passed by the National Assembly is the form and scope of real estate business of Vietnamese people residing abroad.

Thông qua luật Kinh doanh bất động sản, mua nhà trên giấy đặt cọc tối đa 5% - Ảnh 1. — Chairman of the Economic Committee Vu Hong Thanh reported on the reception and revision of the draft Law on Real Estate Business before the National Assembly passed it.

Accordingly, the Law on Real Estate Business has been expanded to allow Vietnamese people residing abroad who are Vietnamese citizens (with Vietnamese nationality) and are allowed to enter Vietnam to do real estate business like domestic citizens.

Accordingly, Vietnamese people residing abroad who are Vietnamese citizens will be allowed to invest in building houses and construction works for sale, lease, or hire-purchase.

Overseas Vietnamese are Vietnamese citizens who invest in building technical infrastructure in real estate projects to transfer, lease, or sublease land use rights with technical infrastructure.

As for people of Vietnamese origin residing abroad who are not Vietnamese citizens (i.e. do not have Vietnamese nationality), they are only allowed to do real estate business in the forms as per current law.

Specifically, overseas Vietnamese who are not Vietnamese citizens are allowed to invest in building houses and construction works associated with land use rights for sale, lease, or lease-purchase through real estate projects implemented in accordance with the form, purpose, and land use term as prescribed by the law on land.

Overseas Vietnamese who are not Vietnamese citizens invest in building technical infrastructure in real estate projects to transfer, lease, or sublease land use rights with technical infrastructure in accordance with the form, purpose, and duration of land use as prescribed by the law on land...

Deposit no more than 5%

In addition to the above provisions, the Law on Real Estate Business also has new provisions on deposits and payments for the purchase and sale of future housing (on paper).

Thông qua luật Kinh doanh bất động sản, mua nhà trên giấy đặt cọc tối đa 5% - Ảnh 2. — National Assembly passes revised Law on Real Estate Business

Accordingly, the Law on Real Estate Business stipulates that real estate project investors are only allowed to collect deposits of no more than 5% of the selling or lease-purchase price from customers when the house or construction project has met all conditions for putting it into business.

The deposit agreement must clearly state the sale price, lease-purchase price of the house, construction work, and the floor area of the construction work.

Regulations on deposits have not been specified in the current law. According to the report on acceptance and adjustment of the National Assembly Standing Committee, the regulation on the deposit level of 5% is to ensure the true nature of the deposit, while limiting risks for the buyer and hire-purchaser, who are often the weaker party in real estate business activities.

Regarding payment in the purchase and sale of houses on paper, although there were many different opinions during the discussion process, in the draft submitted to the National Assembly for approval on the morning of November 28, the payment method was kept the same as the current law.

Accordingly, if the buyer or lessee has not been granted a certificate of land use rights or ownership of assets attached to the land in accordance with the provisions of the law on land, the seller or lessor may not collect more than 95% of the contract value.

The remaining value of the contract is paid when the competent state agency has issued a certificate of land use rights and ownership of assets attached to the land in accordance with the provisions of the law on land to the buyer or hire-purchaser.

However, compared to the current law, the Law on Real Estate Business recently passed by the National Assembly adds payment regulations for the form of leasing houses on paper. Accordingly, until the house is handed over, customers only pay 50% of the value of the leased house or building. The remaining amount is calculated as monthly rent to be paid to the leasing party within a certain period.

The law comes into effect from January 1, 2025.

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