Economic Committee: Real estate trading through the floor should not be required

The Economic Committee believes that real estate trading should not be required through the floor because it will incur costs, increase selling prices and buyers will have to bear them.

Currently, there is no mandatory regulation on trading through the floor, but according to the Government, 99% of investors sell through the floor or broker. Large-scale investors also organize their own trading floors or sales departments. In the draft of the revised Law on Real Estate Business submitted to the National Assembly (consisting of 10 chapters and 92 articles), the Government still proposes that investors selling or leasing future houses must go through the floor. According to the program, the National Assembly will discuss this bill in the group this afternoon (June 19).

Accordingly, the draft law stipulates two types of real estate transactions that must go through the floor, including investors selling, leasing, and purchasing houses or future constructions and transferring, leasing, and subleasing land with technical infrastructure. Other transactions are encouraged to go through the floor.

This regulation, according to the Government, aims to prevent the consequences of forming ghost projects, investors defrauding customers and increase the publicity and transparency of information on real estate projects put into transactions, especially real estate formed in the future.

However, examining this content, the majority of opinions at the Standing Committee of the Economic Committee suggested that transactions through real estate trading floors should not be required, but should only be encouraged.

"It is necessary to respect the right of businesses and people to choose to participate in transactions through real estate trading floors. There should be no mandatory regulations, but only encouragement for organizations and individuals to trade real estate through the floor," the Economic Committee stated its opinion.

Real estate project along Hanoi Highway, Ho Chi Minh City, February 2023. Photo: Quynh Tran — Real estate project along Hanoi Highway, Ho Chi Minh City, February 2023. Photo: *Quynh Tran*

According to this agency, there is currently not enough practical basis and legal safety for real estate transactions through the floor. In addition, requiring real estate transactions on paper to go through the floor will increase costs and include them in the price, the buyer will have to pay both the guarantee fee and the transaction floor fee.

Mandating transactions through exchanges carries the risk of exploiting legal regulations to monopolize, collude with trading parties to evade taxes, and disrupt the market.

In fact, according to the summary of the implementation of the 2014 Law on Real Estate Business, there has been a situation where real estate trading floors have linked up with investors to circumvent the law in the form of distributing products through intermediaries, but in fact, the floors have purchased real estate from investors, creating conditions for both people and businesses to have the opportunity to evade taxes. On the other hand, the situation of trading floors hoarding goods, creating waves, inflating prices, causing virtual fever, and taking advantage of the difference, disrupting the real estate market, is common.

The auditing agency recommends that the Government should issue stricter regulations on the conditions, rights and obligations of real estate trading floors, creating a legal basis for the floors to develop in a professional and effective direction, attracting parties to participate in transactions.

This floor is also responsible for compensation in case of providing incomplete or untrue information leading to damage to the participating parties.

This draft law devotes a separate chapter to regulations regulating the real estate market . However, the Economic Committee found that the contents of the draft law are general, lacking specific policy content, and are situational.

The auditing agency noted that the regulations should be in the direction of ensuring the development and management of the real estate market through planning and land use plans. This is to restructure the market and real estate supply in accordance with development goals in each period, meeting market demand and limiting speculation, minimizing the risk of hot growth and imbalance of supply and demand.

Mr. Minh

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