Real estate with 'electronic identity cards': The end of shady transactions and 'ghost' projects?

(CLO) The government's issuance of Decree 357, requiring the issuance of electronic identification codes for each real estate product, can be seen as a significant turning point in the management of the housing and real estate market.

The government has just issued Decree 357 on the construction and management of information systems and databases on housing and the real estate market.

According to the Decree, the information system and database on housing and the real estate market will be built and managed uniformly from the central to local levels. The Ministry of Construction is responsible for building, managing, and using the system nationwide. Provincial People's Committees are responsible for collecting, updating, and exploiting the database.

The housing and real estate market database system must contain complete project information, including total investment, land use scale, progress, and relevant legal documents.

Having a unique identification code for real estate will reduce legal risks and tighten market discipline. Photo: Government.

At the same time, the real estate database will include statistics on buying and selling prices (million VND per square meter), total transaction value, and inventory of properties, etc.

This system also contains data on notarized transactions and information on real estate purchase and sale contracts. These contracts include the property's identification code and the individual/organization involved in the transaction, the signing date, and the type of transaction (buying, selling, leasing, or transferring ownership...).

In addition to real estate products, the government also regulates identification codes for each apartment building management and operation unit, real estate brokerage licenses, and individuals eligible for housing support policies.

Commenting on this regulation, Mr. Le Trung Tuan, a real estate expert, said: The Government's issuance of Decree 357 requiring the issuance of electronic identification codes for each real estate product can be considered a significant turning point in the management of the housing and real estate market in Vietnam.

"This regulation lays the foundation for the transition from decentralized, manual management to unified, nationwide digital data-driven governance," he said.

According to this expert, Decree 357 will increase transparency and reduce legal risks. He believes that having a unique identification code for each real estate product helps establish a clear legal "identity" for each property. This limits situations where a property is bought and sold multiple times, prevents "ghost" projects, and avoids ambiguous legal information – issues that have previously posed significant risks to buyers and investors.

In addition, real estate information systems enhance market discipline and professionalize business operations.

"When every transaction is linked to a real estate identifier and the transaction party, the space for speculation, loopholes, and tax evasion will be narrowed. In the long term, this regulation contributes to bringing the real estate market closer to international standards," Mr. Tuan emphasized.

However, Mr. Tuan also acknowledged that implementing the new regulations presents numerous challenges. For example, the capacity for enforcement at the local level. Provincial People's Committees are responsible for collecting and updating data, while in reality, the quality of land and housing data in many localities is inconsistent, or even incomplete.

Furthermore, real estate databases contain a vast amount of information about properties, transactions, and ownership. Therefore, security, access control, and system safety requirements must be at a high level; otherwise, there is a risk of data leakage.

Source: https://congluan.vn/bat-dong-san-co-can-cuoc-dien-tu-het-thoi-mua-ban-map-mo-du-an-ma-10325623.html