Hello lawyer. My company deals in real estate and sells apartments. However, because I want to compete with other sellers, my company does not publicly post real estate information on the company’s homepage as well as give verbal advice and send some general information about the project to the company. client. So, do businesses have to publicize real estate information to put into business? Is non-disclosure illegal? Ask your lawyer to answer.
Real estate disclosure helps buyers stay informed about products to make informed choices. Besides, this publicity also ensures healthy competition between business entities. Many parties want to have an advantage, so they do not publicize the information of the real estate and want to give exclusive news. So is this illegal? How is the disclosure of information about real estate put into business regulated? Prohibited acts when doing real estate business? To clarify these questions, Lawyer X would like to introduce the article “Does real estate information be publicized for business?”. We invite you to read along.
Legal grounds
- Law on Real Estate Business 2014
- Decree 16/2022/ND-CP
Regulations on real estate business
Real estate business is the investment of capital to carry out construction activities, purchase, receive assignment for sale or transfer; lease, sublease, lease purchase of real estate; real estate brokerage services; besides, real estate trading floor services; real estate consulting or real estate management services for profit.
The law also stipulates that one of the principles of real estate business is:
– Real estate business must be honest, public and transparent.
– Real estate put into business must fully satisfy the conditions prescribed by this Law.
Besides, Article 5 of the Law on Real Estate Business 2014 provides as follows:
“Article 5. Types of real estate put into business
Types of real estate put into business under this Law (hereinafter referred to as real estate) include:
1. Existing houses and construction works of organizations and individuals;
2. Houses, construction works formed in the future of organizations and individuals;
3. Houses and construction works are public property permitted by competent state agencies to be put into business;
4. Types of land that are permitted to be transferred, leased or sub-leased according to the provisions of the land law are permitted to trade in land use rights.”
Accordingly, the real estate business needs to comply with the principles and regulations of the law.
Is it necessary to disclose real estate information to put into a business?
“Real estate business must be honest, public and transparent.” (Clause 2, Article 4 of the Law on Real Estate Business 2014)
Publicity in business is one of the principles of real estate business. On the other hand, according to the provisions of Clause 3, Article 8 of the Law on Real Estate Business 2014, the law prohibits real estate businesses from acts of not disclosing or disclosing incomplete and truthful information about real estate. real estate put into business.
Therefore, publicizing information about real estate put into business is the responsibility of enterprises. This responsibility is specified in Article 6 of the Law on Real Estate Business 2014 as follows:
Forms of publicizing information about real estate put into a business
According to the provisions of Clause 1, Article 6 of the Law on Real Estate Business 2014″:
Real estate businesses are responsible for publicizing information about real estate put into business in the following forms:
- At the website of the real estate business;
- Secondly, at the headquarters of the Project Management Board for real estate investment and business projects;
- Moreover, at the real estate trading floor for the case of doing business through the real estate trading floor.
Public content
Contents of information about real estate that enterprises must disclose include:
- Type of real estate;
- Location of real estate;
- Information on planning related to real estate;
- Size of the real estate;
- Characteristics, properties, usability and quality of the real estate; information on each type of use purpose and common use area for real estate that is a mixed-use building, apartment building;
- Actual situation of infrastructure works and services related to real estate;
- Dossiers and papers on ownership of houses, construction works, land use rights and papers related to real estate investment and construction; guarantee contract, written permission to sell, lease-purchase by a competent state agency for the sale, lease-purchase of houses to be formed in the future;
- Restrictions on ownership and right to use real estate (if any);
- Sale, transfer, lease, sublease, and lease purchase price of real estate.
Not disclosing information about real estate put into a business is a violation?
According to Clause 3, Article 8 of the Law on Real Estate Business 2014:
“Article 8. Prohibited acts
3. Failure to disclose or incompletely and truthfully disclose information about real estate.”
Pursuant to the above provisions, it is illegal for a real estate company to disclose information about real estate put into business and will be sanctioned according to regulations.
The sanction will be implemented according to Point b, Clause 1, Article 58 of Decree 16/2022/ND-Cp. Specifically:
“Article 58. Violations against regulations on real estate business
1. A fine of between VND 100,000,000 and 120,000,000 shall be imposed for one of the following acts:
a) Real estate business in cases where enterprises or cooperatives must be established but are not established according to regulations;
b) Failure to disclose, incompletely or improperly the contents of real estate projects or housing construction investment projects as prescribed;
c) The real estate business contract is not made in writing or the real estate business contract is not made with all the main contents as prescribed or in contravention of the law;
d) Failing to provide information on construction investment progress or the use of advance payments upon request; not allow the purchaser, the lessee to inspect the actual construction progress and quality of the work as prescribed;
đ) Collecting fees related to real estate transfer in contravention of regulations.”
Therefore, for the act of not disclosing information about real estate put into business, enterprises may be fined from VND 100,000,000 to VND 120,000,000. In addition, this enterprise is also forced to fully and accurately disclose information about real estate that has not been disclosed according to regulations.
Do đó, trường hợp công ty bạn là công ty kinh doanh bất động sản thì công ty có trách nhiệm công bố thông tin về bất động sản đưa vào kinh doanh theo quy định của pháp luật. Trường hợp công ty không công bố, công bố không đầy đủ, không chính xác thì công ty sẽ bị xử lý theo quy định nêu trên.
Related article:
- Can foreign enterprises do real estate business in Vietnam?
- Conditions for foreign investors do real estate business services
Frequently asked questions
According to Clause 3, Article 58 of Decree 16/2022/ND-CP stipulating:
“A fine of between VND 400,000,000 and VND 600,000,000 shall be imposed for one of the following acts:
a) Trading in real estate that does not fully satisfy the conditions as prescribed or is not allowed to be put into business as prescribed;”
Accordingly, if they put into real estate business without ensuring business conditions, they will be fined from VND 400,000,000 to VND 600,000,000.
According to Article 10 of the Law on Real Estate Business 2014 stipulates:
1. Organizations and individuals doing real estate business must establish enterprises or cooperatives and have legal capital not less than 20 billion VND, except for the case specified in Clause 2 of this Article.
2. Organizations, households and individuals that sell, transfer, lease, lease-purchase real estate on a small and irregular scale are not required to establish an enterprise but must declare and pay tax by law.
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