Real estate business is quite popular in recent years. Especially when the price of land in many areas in Vietnam has increased sharply, many outstanding projects and cases have received close attention and direction from the State over the past time. How are the general provisions of Vietnamese law governing the current real estate business? LSX Lawfirm will give you an article about: “General regulations on real estate business activities in Vietnam”, as follows:
Legal grounds
Law on real estate business 2014
What is real estate business?
So Real estate business is the investment of capital to carry out construction activities, purchase, receive assignment for sale or transfer; lease, sub-lease, lease-purchase real estate; real estate brokerage services; then the real estate trading floor services; real estate consulting or real estate management services for profit.
Thus, real estate business can be divided into 2 main groups which are:
- Firstly Trading in real estate through construction, purchase, transfer for sale or transfer; lease, sublease, lease buy real estate.
- Secondly in this group, based on the type of real estate, it can be classified into: Trading in houses and construction works; Trading in land use rights
- Then Based on the completion of real estate can be divided into: Trading in existing real estate; Real estate business formed in the future
- Then real estate services business including: real estate brokerage services; real estate trading floor services; real estate consulting or real estate management services for profit.
Depending on each group and specific real estate business activities, the law has separate regulations governing each group and real estate business activities.
Principles of real estate business in Vietnam
– Equality before the law; freely negotiate on the basis of respecting the legitimate rights and interests of the parties through the contract, not contrary to the provisions of law.
– Real estate put into business must fully satisfy the conditions prescribed by this Law.
So Real estate business must be honest, public and transparent.
Organizations and individuals have the right to trade in real estate in areas outside the scope of national defense and security protection according to master plans and plans on land use approved by competent state agencies.
Types of real estate put into business
Types of real estate put into business under this Law (hereinafter referred to as real estate) include:
- Firstly Existing houses and construction works of organizations and individuals;
- Secondly Houses, construction works formed in the future of organizations and individuals;
- Thirdly Houses and construction works are public property permitted by competent state agencies to be put into business;
- Finally Types of land that are permitted to be transferred, leased or sub-leased according to the provisions of the law on land are permitted to trade in land use rights.
Disclosure of information about real estate put into business in Vietnam
Real estate enterprises are responsible for publicizing real estate information in the following forms:
– At the website of the real estate business;
– Then at the headquarters of the Project Management Board for real estate investment and business projects;
– Then at the real estate trading floor for the case of doing business through the real estate trading floor.
Contents of information about real estate include:
- Type of real estate;
- Location of real estate;
- Information on planning related to real estate;
- The size of the real estate;
- Characteristics, properties, usability and quality of 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 status 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);
- Price of real estate sale, transfer, lease, sublease, lease purchase.
State policy for real estate investment and business in Vietnam
So the State encourages organizations and individuals of all economic sectors to invest in real estate business in line with the country’s socio-economic development goals in each period and each locality.
Then the State encourages and adopts policies on tax exemption and reduction, land use levy, land rent, and preferential credit for organizations and individuals investing in construction of social housing and projects eligible for investment incentives.
- Then the State invests and encourages organizations and individuals to invest in the construction of technical infrastructure works outside the project’s fence; support investment in construction of technical infrastructure in the fence for projects eligible for investment incentives.
- The State invests in and encourages organizations and individuals to invest in urban public service projects and social infrastructure works within the scope of real estate investment and business projects.
- The State has mechanisms and policies to stabilize the real estate market when there are fluctuations, ensuring benefits for investors and customers.
Prohibited acts
- Firstly Real estate business does not meet the conditions prescribed by law
- Decide the investment in real estate projects that are not in accordance with the master plan or plan approved by a competent state agency.
- Then Failure to disclose or incompletely and truthfully disclose information about real estate.
- Fraud and deception in real estate business.
- Illegally mobilizing and appropriating capital; using capital mobilized from organizations and individuals and advance money from buyers, lessees, and lessees to buy future real estate for improper purposes as committed.
- Then Failure to perform or incompletely fulfill financial obligations to the State.
- Issuing and using the real estate brokerage practice certificate in contravention of the law
- Then Collecting fees, charges and other money related to real estate business in contravention of the law.
You can refer to the article related to Procedures to establish a real estate brokerage company in Vietnam or Prohibited acts in real estate business in Vietnam.
Related questions
No! Real estate brokerage practice certificates must be issued and used in accordance with the law. Issuing and using a real estate brokerage practice certificate in contravention of the law is a prohibited act.
The law currently prohibits the illegal mobilization and appropriation of capital; using capital mobilized from organizations and individuals and advance money from buyers, lessees, and lessees to buy future real estate for improper purposes as committed.
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