Note for future home buyers

Buying a house requires choosing a product with full legal documents.

From August 1, the Land Law, Housing Law and Real Estate Business Law officially took effect. There are many regulations on the Real Estate Business Law that buyers and investors need to understand clearly before spending money to buy a real estate product.

The most prominent real estate project that many people are interested in today is the project's legal issue.

According to Nguoi Dua Tin , in recent years, authorities have tightened licensing and regularly inspected real estate projects, causing the market to stagnate.

Investors need to choose products with full legal status and transparency when buying future housing.

The slow completion of project legal procedures has led to a shortage of supply. Many buyers and investors have been left stranded as some projects have failed to continue construction on schedule. This has left the real estate market in a "dark" state.

From the beginning of 2024, businesses, investors, and home buyers still have high expectations for the real estate market, waiting for the Land Law, Real Estate Business Law, and Housing Law to officially take effect to stimulate the market and overcome the difficult period.

Sharing with reporters, Mr. Ngo Quang Phuc, General Director of Phu Dong Real Estate Joint Stock Company (Phudong Group) commented: "During the time waiting for the new Laws to "absorb", the real estate market will continue to recover slowly with positive information, clearly dividing the needs of investors in each segment and region".

Commenting on the notes for customers and investors now that the Law on Real Estate Business has come into effect, Mr. Phuc said: "The law is in effect but we still have to wait for many new moves from investors and businesses doing projects. Currently, the project supply has appeared, investors are taking advantage of offering products in the last quarters to welcome customers and cash flow at the end of the year. However, investors also need to be really careful when buying future housing in the near future."

According to Mr. Phuc, buyers and investors need to have a firm grasp of current legal regulations on real estate projects and future housing sales. Specifically, it is necessary to clearly understand the legal aspects of the project, such as investment policy approval, 1/500 planning, construction permits, land use fees, etc. This is one of the basic legal issues for a future housing sales project.

Mr. Ngo Quang Phuc, General Director of Phu Dong Real Estate Joint Stock Company.

"Currently, the Law on Real Estate Business has very strict regulations, requiring investors to have full legal status to be allowed to offer products to the market, raise capital, and sign contracts with customers. This is one of the key points to help protect consumers, make investors more professional, do business more reputable, and make the real estate market more transparent.

In addition, when buying or investing in a house in the future, customers should also pay attention to the purchase and sale, capital mobilization, investor capacity, price, and area. These are also some of the points that need to be considered when buying real estate," said Mr. Phuc.

Need to understand the laws that benefit home buyers

The Law on Real Estate Business took effect on August 1, but many people still do not fully understand the regulations governing it. Among them, there are a series of beneficial laws that home buyers should pay attention to.

Article 23 of the 2023 Law on Real Estate Business stipulates that real estate project investors may only collect deposits of no more than 5% of the selling price, lease-purchase price of houses, construction works, and construction floor area in the works from the depositor for purchase or lease-purchase when the houses and construction works have met all the conditions for putting into business according to the provisions of this law. The deposit agreement must clearly state the selling price, lease-purchase price of houses, construction works, and construction floor area in the construction works.

Article 25 of the Law on Real Estate Business stipulates that payment in the purchase and sale of houses and future construction works can be made in installments, the first installment not exceeding 30% of the contract value including the deposit.

Many notes for future home buyers.

Subsequent payments must be consistent with the construction progress, but the total amount must not exceed 70% of the contract value when the house or construction work has not been handed over to the buyer; in case the seller is an economic organization with foreign investment capital as prescribed in Clause 4, Article 10 of the Law on Real Estate Business 2023, the total amount must not exceed 50% of the contract value.

Payment in the lease purchase of future housing and construction works is made in installments. The first installment must not exceed 30% of the contract value including the deposit, the following installments must be consistent with the construction progress until the handover of the house.

Construction works, construction floor area in construction works for the lessee, but the total amount of advance payment to the lessor must not exceed 50% of the value of the lease-purchase contract for housing and construction works.

In addition, the law stipulates that if the buyer or hire-purchaser has not been granted a certificate of land use rights or ownership of assets attached to the land in accordance with the provisions of the law on land, the seller or hire-purchaser may not collect more than 95% of the contract value.

Many future urban housing projects are looking for customers.

Article 26 of the 2023 Law on Real Estate Business stipulates that when signing a contract for the sale or lease-purchase of future housing, the buyer or lessee may choose whether or not to have a guarantee for the investor's financial obligations to them.

Sharing about the current regulations, lawyer Truong Hong Dien, Ho Chi Minh City Bar Association (Xuan Phu Law Office) said: The above regulations have tightened the deposit amount as well as the payment amount when conducting transactions related to real estate compared to the previous 2014 Law on Real Estate Business.

Regulations on deposit limits, as well as payment of contract value made in installments and according to contract performance progress and construction progress of the seller, have contributed to reducing the burden of costs and risks of "money being paid but porridge being waited for forever without being scooped up" for buyers of real estate formed in the future.

Lawyer Truong Hong Dien. (Photo: NVCC).

On the other hand, this is also a driving force, forcing investors as well as sellers to carry out construction progress correctly and hand over houses on time to sellers, avoiding stagnation, affecting the stable life of buyers.

Investors will have to balance resources to implement quality real estate projects, diversify segments, within their capabilities, because the tricks of capital mobilization through deposit contracts, opening for sale when conditions are not met, collecting money at a disadvantageous percentage for buyers even though the project progress is not commensurate. This is also an advantage for the real estate market and buyers.

According to lawyer Dien, the current regulation on deposit collection of no more than 5% of the selling price reflects the true nature of the deposit, aiming to ensure the conclusion or performance of the contract between the parties when participating in real estate transactions.

This regulation has partly helped home buyers avoid risks, such as the seller raising capital from the buyer before carrying out legal procedures under the name of deposit or defrauding the deposit, causing damage to the buyer.

Source: https://www.nguoiduatin.vn/nhung-diem-moi-cua-3-luat-ve-bat-dong-san-nguoi-mua-nha-o-hinh-thanh-trong-tuong-lai-can-biet-204240827170133735.htm