[NEWS] – The first time “legalize” the regulation of the real estate market

The Law on Real Estate Business was revised in the spirit of solving inadequacies from practice that hindered socio-economic development; Eliminate overlaps in law enforcement and administrative procedures. The Ministry of Construction plans to institutionalize 4 groups of policies that the Government submits to the National Assembly in 11 chapters of the Draft Law on Real Estate Business (amended) with 99 articles.

On the afternoon of September 23, in Hanoi with the participation of local management agencies, experts, professional associations, and businesses. Deputy Minister of Construction -  Nguyen Van Sinh said that compared to the Law on Housing, the current Law on Real Estate Business is less problematic. Therefore, this revision is mainly to clarify some contents related to the floor real estate trading floor, the regulations on trading products through the floor, and new types of real estate... Notably, the point is regulation for the real estate market to develop stably and strongly.

The Law on Real Estate Business will be revised in the spirit of solving inadequacies from practices that hinder socio-economic development; eliminating overlaps in law enforcement and administrative procedures; decentralization of powers to localities…

In particular, the scope and types of real estate put into the business in the Draft Law have supplemented and clarified the types of available houses and houses to be formed in the future; Existing construction works and construction works to be formed in the future include civil works according to the law on construction, tourist apartments, tourist villas, offices combined with accommodation…

In addition, houses and construction works that are identified as public property are permitted to be put into the business by competent state agencies; types of land that are allowed to be transferred, leased, or sub-leased according to the provisions of law, are allowed to trade in land use rights. For land use rights in real estate projects put into the business, it must be land use rights with technical infrastructure.

Regarding the conditions of organizations and individuals doing real estate business, Mr. Dung said that the draft Law has amended and supplemented the fact that organizations and individuals doing real estate business must meet certain conditions. Specifically, it is required to establish an enterprise or a cooperative, having a real estate business (collectively referred to as an enterprise)....; have full legal capacity, civil act capacity as prescribed by law and not during the period of being banned, suspended or temporarily suspended from operation in accordance with law or under a decision of a state agency. competent country or during the time of carrying out procedures for bankruptcy or dissolution of the organization.

In case an investor is selected, recognized, and assigned to act as the investor of a real estate project in accordance with the law, the owner’s equity must not be lower than 20% of the total investment capital for the project. having a land use scale of fewer than 20 hectares, not less than 15% of the total investment capital for projects with a land use scale of 20 hectares or more - the draft Amendment Law clearly states…

Currently, the Ministry of Construction is still accepting comments and continuing to edit and complete the revised draft Law on Real Estate Business, serving as a basis for implementing further content and work in the process of developing this law.

Thanh Long