The Law on Real Estate Business (amended) was passed by the National Assembly this morning (November 28), with more than 94% of delegates in favor. This law takes effect from January 1, 2025.
Mr. Vu Hong Thanh, Chairman of the Economic Committee, stated a new point: real estate transactions between individuals and small-scale organizations will be agreed upon by the parties on the form of payment for the purchase and sale contract and transfer. However, investors and real estate businesses are required to pay through banks.
This regulation, according to Mr. Thanh, aims to ensure control of real estate transaction cash flow of project investors and real estate businesses.
Mr. Vu Hong Thanh, Chairman of the Economic Committee, spoke on the morning of November 28. (Photo: Quochoi)
According to new regulations passed by the National Assembly, deposits for buying and selling houses on paper are being tightened. Specifically, real estate project investors are only allowed to collect deposits of no more than 5% of the selling price, lease-purchase price of houses, and construction works formed in the future when they meet the conditions for putting them into business.
The deposit agreement clearly states the selling price, lease-purchase price of the house, construction work, and the floor area of the construction work. A real estate project on paper can only be put into business when there is one of the documents on land use rights, such as a land allocation decision, a land use rights certificate, house ownership and land use rights...
This, according to the National Assembly Standing Committee, ensures that the nature of the deposit is properly reflected, while limiting risks for the buyer and lessee, who are often the weaker parties in real estate business activities. Because the deposit is the first step in the buying and selling process, carried out before the contract is signed, it needs to be monitored to avoid collecting too large a deposit, which can lead to fraudulent behavior that causes damage to the buyer.
However, real estate projects that are eligible for sale on paper but have not signed a sale or lease-purchase contract by the time the law comes into effect (January 1, 2025) will continue to carry out sale or lease-purchase procedures according to current regulations. Investors must publicly disclose information about real estate projects according to the new law before signing contracts.
Regarding payment when transacting future housing, the Chairman of the Economic Committee said that after reviewing, the National Assembly Standing Committee finalized the plan for customers to pay 95% of the contract value, the remainder will be paid when they are granted a certificate of land use rights and home ownership.
Thus, the customer retains a part of the contract value while waiting for the Certificate to be issued.
The investor must fulfill financial obligations (land rent, taxes, fees related to land) before transferring all or part of the real estate project.
In addition, the investor must have a decision to assign, lease, or permit change of land use purpose, but is not required to have a land use right certificate for the entire or part of the transferred project.
Chairman of the Committee Vu Hong Thanh said that this regulation aims to prevent the selection of unqualified investors to transfer projects and to ensure the principle of only selling and transferring what the seller or transferor has.
Ha Cuong
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