Proposing 3 options to identify individuals doing real estate business

The Ministry of Construction drafted a Decree detailing and guiding the implementation of a number of articles of the 2023 Law on Real Estate Business. The draft is open for comments until April 27.

According to Clause 3, Article 9 of the 2023 Law on Real Estate Business, individuals doing small-scale real estate business do not have to establish an enterprise, but must declare and pay taxes according to the provisions of law.

In order to provide criteria to more clearly identify individuals doing small-scale real estate business. In the draft, the Ministry of Construction proposed conditions for individuals doing small-scale real estate business and for organizations and individuals selling houses, construction works, and floor areas in construction works not for business purposes.

Specifically, the Ministry of Construction is proposing three options to identify individuals doing small-scale real estate business.

Option 1, individuals sell, transfer, lease, or lease-purchase existing houses or future houses, from 3-5 houses or 3-5 apartments, within 1 year (12 months).

Individuals sell, transfer, lease, or lease-purchase existing construction works or future construction works from 5-10 construction works or 5-10 floor areas in construction works, within 1 year (12 months).

Option 2: sell, transfer, lease, or lease-purchase real estate under ownership or usage rights according to the provisions of law with an area of 1,000m2 to 2,000m2 of land in urban areas.

Sell, transfer, lease, lease-purchase real estate under ownership and usage rights according to the provisions of law with an area from 3,000m2 to 5,000m2 of land in rural areas.

Sell, lease, lease-purchase real estate under ownership and usage rights according to the provisions of law with an area from 1,000m2 to 2,000m2 of construction floor for houses and mixed-use buildings with houses.

Sell, lease, or hire-purchase real estate under ownership or usage rights as prescribed by law with an area of 3,000m2 to 5,000m2 of construction floor area for non-residential construction projects.

Option 3, individuals invest in building individual houses with 2 floors or more and a scale of less than 20 apartments for rent according to regulations in Clause 3, Article 57 of Housing Law No. 27/2023/QH15.

Individuals selling, leasing or purchasing houses and construction works whose origin is inherited houses and construction works.

Individuals sell or lease houses that originate from gratitude houses, charity houses, or solidarity houses that individuals receive as gifts from state agencies, organizations, or individuals.

Organizations and individuals selling houses, construction works, and construction floor areas in construction works not for business purposes as prescribed in Clause 4, Article 9 of the Law on Real Estate Business No. 29/2023/QH15 are cases prescribed in Clause 2, Article 1 of the Law on Real Estate Business No. 29/2023/QH15.

Public information about real estate, real estate projects put into business

Before signing a deposit contract or a contract to sell or lease-purchase real estate or a real estate project, a real estate business enterprise is responsible for fully, honestly and accurately disclosing information about the real estate or real estate project as prescribed in Clauses 2, 3, 4 and 5, Article 6 of the Law on Real Estate Business No. 29/2023/QH15 as follows:

On the housing and real estate market information system of the locality where the project is located. Information disclosure is carried out in accordance with the provisions of the Decree on the construction, management and use of the housing and real estate market information system.

On the website of the real estate business and implemented by the business itself.

The content of public information is implemented according to the provisions in Clauses 2, 3, 4 and 5, Article 6 of the Law on Real Estate Business No. 29/2023/QH15, some specific contents are as follows:

Information on detailed planning approved by a competent state agency is the Decision approving the 1/500 detailed planning or the master plan of the real estate project approved by a competent state agency.

The basic design in the construction investment feasibility study report that has been appraised according to the provisions of the law on construction is the Notice of appraisal results of the construction investment feasibility study report by the competent state agency.

The agreement on granting a guarantee in the sale or lease-purchase of future housing is a document approving the granting of a guarantee by a domestic commercial bank or a branch of a foreign bank legally operating in Vietnam for the financial obligations of the investor to the buyer or lessee of the housing when the real estate project investor fails to hand over the housing as committed in the contract for the sale or lease-purchase of future housing.

Mortgage of houses, construction works, construction floor area in construction works, land use rights, real estate projects put into business is a document of the real estate project investor clearly stating whether or not there is a mortgage on houses, construction works, construction floor area in construction works, land use rights, real estate projects put into business.

Documents proving that the project investor has fulfilled its financial obligations regarding land, including land use fees, land rents, and taxes, fees, and charges related to land (if any) to the State according to the provisions of law for the land area with technical infrastructure in the real estate project put into business are the Confirmation document or invoice or receipt from the tax authority or the State Treasury showing that the project investor has fulfilled its financial obligations regarding the land area with technical infrastructure in the real estate project put into business.

Mortgage of land use rights and real estate projects put into business is a document of the real estate project investor clearly stating whether or not there is a mortgage on land use rights and real estate projects put into business.

If there is any change in the publicly disclosed information, the real estate business enterprise shall, within 5 working days at the latest, be responsible for updating the changed information on the enterprise's website and notifying the agency managing the housing and real estate market information system at the provincial level where the project is located to update the changed information.

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