Vietnam The Ministry of Construction proposes to amend the Law on Real Estate Business

Vietnam: The Ministry of Construction proposes to amend the Law on Real Estate Business

The Ministry of Construction is proposing to amend the Law on Real Estate Business in order to strengthenthe law on real estate business, and remove difficulties and obstacles; create favorable conditions in real estate business; well manage real estate business transactions, ensure the stable and healthy development of the real estate market.

The Ministry of Construction said that the Law on Real Estate Business 2014 was approved by the National Assembly on November 25, 2014 and took effect from July 1, 2015. Through the assessment and preliminary review of the implementation, the Law has ensured transparency in the investment and business environment for domestic and foreign enterprises; do not generate administrative procedures, documents etc. and create conditions for the real estate market to operate according to the market mechanism.

After 6 years of implementation, the Law has arisen a number of problems and limitations in terms of trading in existing houses and construction works; on real estate business formed in the future; on business of land use rights, on transfer of real estate projects etc.

Therefore, the amendment of the Vietnam Law on Real Estate Business is necessary to deal with the shortcomings and inadequacies of the specific provisions of the current Law, ensuring the suitability, synchronization, and non-overlapping with the system. other relevant laws such as Investment Law, Housing Law, Land Law, and Civil Law.

At the same time, creating favorable conditions in real estate transactions, ensuring the stable, healthy, public and transparent development of the real estate market; limiting the arising of administrative conditions and procedures in the management of real estate transactions and the real estate market; strengthen the effectiveness and efficiency of state management, step up the application of information technology and digital transformation in the management of real estate transactions and the real estate market.

Policies in the Law on Real Estate Business (amended)

The Ministry of Construction proposes policies on trading in existing houses and construction works. Accordingly, supplementing regulations that require real estate project investors to sell, rent, lease-purchase houses and construction works through the real estate trading floor.

Regarding the available housing business: Supplementing regulations to clarify and specify requirements for investors and for housing projects when selling, leasing, or leasing-purchase existing houses.

In addition, the Ministry of Construction also proposes policies on house business and construction works to be formed in the future.

The direction of amendment is to add specific regulations on requirements for investors and for real estate projects when dealing in houses and construction works to be formed in the future; review, amend and supplement regulations on guarantee in the sale, lease-purchase of real estate formed in the future; supplementing regulations on guarantee when selling future construction works (especially office buildings, tourist apartments, etc.). Review, amend and supplement regulations on contracts, payment, handover, requirements and responsibilities of parties in the housing business and construction works to be formed in the future.

As for the policy on business of land use rights, the direction of amendment is to: Add specific regulations on forms of business of land use rights that have invested in technical infrastructure in real estate projects, including: Transfer of residential land use rights for organizations or households to build houses; transfer of land use rights to organize the construction of works under the project.

As for the policy on real estate brokerage service business: Amending and supplementing the regulation that a certificate of course completion is required before taking the exam for a real estate brokerage practice certificate.

Supplement regulations on management of individuals engaged in real estate brokerage activities. Supplement regulations on management form for foreign organizations and individuals practicing brokerage in Vietnam. Amend and supplement the rights and obligations of real estate brokers. Amending and supplementing the competence to issue real estate brokerage practice certificates. Amending and supplementing regulations on competence to organize examinations for issuance of certificates of real estate brokerage practice.

In addition, the draft also proposes a policy on real estate trading floor services in the direction of amending and supplementing regulations on financial capacity conditions for the establishment of real estate trading floors; supplementing regulations on reporting regime of real estate trading floors; additional regulations on real estate trading floor models; amending and supplementing regulations that require real estate transactions to go through real estate trading floors; amending and supplementing regulations on rights and obligations of organizations and individuals participating in real estate trading floors etc.

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