Real Estate Business Law 2023 raises high expectations to remove bottlenecks

The Real Estate Business Law 2023 (officially effective from August 1, 2024) has institutionalized the Party's guidelines and policies and the State's policies on developing and strictly managing the real estate market; perfecting the mechanisms and policies for healthy, sustainable development and smooth operation of the real estate market.

Contribution to perfecting the mechanisms and policies

After more than 8 years of implementing the Real Estate Business Law 2014, the real estate business sector has achieved many important achievements. Specifically, the provisions of the law on real estate business have created a legal basis to promote the development of the real estate market, especially contributing to transparency, making the market healthy, standardizing real estate goods traded, improving the professionalism of business entities and real estate service businesses. However, the real estate business sector also has limitations and difficulties, requiring necessary amendments and supplements to ensure compliance with the practical requirements of real estate business activities, ensuring consistency and conformity with newly issued or about-to-be-issued laws.

The 2023 Law on Real Estate Business contributes to perfecting mechanisms and policies, stabilizing the real estate market

Mr. Vuong Duy Dung, Deputy Director of the Department of Housing and Real Estate Market Management, Ministry of Construction, said that the 2023 Law on Real Estate Business aims to promptly institutionalize the Party's guidelines and policies, and the State's policies in developing and strictly managing the real estate market; perfecting the mechanism and policies for healthy, sustainable development and smooth operation of the real estate market; synchronously operating the land use rights market, labor market, real estate market; ensuring the stable, healthy, public and transparent development of the real estate market. Amending and perfecting the provisions of the 2014 Law on Real Estate Business to suit the actual situation, removing existing problems and limitations, ensuring the constitutionality, consistency and synchronization between the provisions of the 2023 Law on Real Estate Business and other relevant laws.

The cleansing of real estate market

In order to promptly implement and soon bring the 2023 Housing Law and the 2023 Real Estate Business Law into reality, ensuring consistency, synchronization, effectiveness and efficiency across the province, the Department of Construction has just coordinated with the Center for Housing and Real Estate Market Research of the Ministry of Construction to organize a training conference to disseminate new points of the 2023 Real Estate Business Law and documents guiding its implementation.

At the conference, Mr. Vuong Duy Dung said that the 2023 Real Estate Business Law has amended and supplemented regulations on types of real estate and real estate projects put into business in a more specific direction; amended and supplemented regulations on public disclosure of information on real estate put into business to enhance the publicity, transparency, safety and health of real estate business activities; legalize some provisions of the current decree on conditions for organizations and individuals when doing real estate business and supplement provisions on conditions for real estate business enterprises through real estate projects to have minimum equity capital, must ensure the ratio of outstanding credit debt, outstanding corporate bond debt over equity capital.

According to Mr. Phan Cao Phuc, Vice Chairman of the Binh Duong Province Real Estate Association, the 2023 Law on Real Estate Business will create favorable conditions for home buyers and investors to have the opportunity to access real estate investment capital, with more preferential policies than the 2014 Law on Real Estate Business. One of the new points on the business policy of existing and future housing and construction works is supplementing the regulation that real estate project investors are only allowed to collect deposits of no more than 5% of the selling price, lease-purchase price of housing, construction works, and construction floor area in construction works from the depositor for purchase, lease-purchase when the housing and construction works have met all the conditions for putting into business according to the provisions of the 2023 Law on Real Estate Business. This new point will help customers avoid many risks, be safer, and ensure their rights; at the same time, it helps make real estate business activities healthier.

According to experts, the new point of the 2023 Law on Real Estate Business on the content of transferring the entire or part of a real estate project will ensure clear, strict and feasible legality for the transfer of the entire or part of a real estate project. Specifically, the 2023 Law on Real Estate Business has removed the regulation on the condition of having a land use right certificate for the project, the part of the real estate project to be transferred; supplemented regulations on the conditions of the transferring investor, which are: having a decision on land allocation, land lease, permission to change the purpose of land use to implement the project by a competent State agency; having fulfilled the financial obligations on land of the project including land use fees, land rent and taxes, fees, and charges related to land (if any) to the State.

Reported by Phuong Le – Hoang Phong – Translated by Vi Bao