Understanding the laws applicable to real estate valuation helps investors minimize risks.

Associate Professor, Dr. Nguyen Quang Tuyen, Vice Chairman of the Council, Head of the Faculty of Economic Law, Hanoi Law University; senior expert of the Vietnam Real Estate Association, said that to participate in the real estate market, investors need to grasp basic legal knowledge about property valuation and appraisal; procedures for valuation and appraisal activities and the content of tax law.

PGS.TS Nguyễn Quang Tuyến thuyết trình trong một sự kiện lớn của Trung tâm Phát triển Bất động sản (RED) - Hiệp hội Bất động sản Việt Nam tổ chức tháng 5/2023.

Associate Professor, Dr. Nguyen Quang Tuyen presented at a major event of the Real Estate Development Center (RED) - Vietnam Real Estate Association held in May 2023. (Source: RED)

Valuation is the assessment or re-assessment of the value of an asset in accordance with the market at a certain location and time according to Vietnamese standards or international practices.

Clause 9, Article 4 of the Law on Real Estate Business stipulates: "Real estate valuation is the activity of consulting and determining the price of a specific real estate at a specified time."

Valuation and appraisal of property rights is a complex activity, requiring certain legal and scientific bases. When valuating and appraising land use rights, it is necessary to base on the provisions of the Land Law and other relevant regulations.

Real estate investment is one of the attractive and highly profitable forms of investment chosen by many people. However, this type of investment also has many potential risks, especially when investors do not fully understand the laws applicable to real estate valuation activities.

In a market economy, prices are formed and move under the control of objective laws of the market economy, but it is also the spontaneous movement of market prices that can have negative impacts on the buying and selling process. To limit the spontaneous impacts of market laws, contribute to encouraging investment, development, protecting the legitimate interests of investors and the interests of the State, the State has been managing asset valuation and appraisal activities by law.

Land is a type of real estate, so land valuation must also follow the regulations on real estate valuation in general. However, land is a special asset different from other real estate, requiring that when valuing and appraising land, it must follow specific regulations.

Principles of real estate valuation are guiding ideas that entities must follow during the real estate valuation process. Principles of real estate valuation include: Real estate valuation must be based on technical standards, nature, location, scale, current status of the real estate and market price at the time of valuation; Real estate valuation must be independent, objective, honest and in compliance with the law.

In a market economy, asset valuation and appraisal activities are objective and important activities. To protect the legitimate rights and interests of parties involved in property relations of business organizations, individuals, and consumers, to ensure social order and public interests, social relations arising in valuation and appraisal activities are always regulated by law.

Therefore, investors need to regularly update their knowledge of the law applicable to real estate valuation activities. According to Associate Professor, Dr. Nguyen Quang Tuyen, Vice Chairman of the Council, Head of the Faculty of Economic Law, Hanoi Law University, investors need to have a firm grasp of legal theories as well as current regulations on assets, property rights; basic contents of price law, valuation; law on enterprises in general, as well as valuation enterprises in particular.

In addition, investors also need to learn basic legal knowledge about asset valuation, appraisal; procedures for appraisal and valuation activities and some contents of tax law. This is a relatively broad and complex content, requiring guidance from experts in the industry.

To help investors equip themselves with the most basic knowledge of laws applicable to real estate valuation and appraisal activities, the Real Estate Development Center (RED) - Vietnam Real Estate Association will organize the following training program: “Real estate valuation for investment activities” on July 27-28, 2023 at the National Exhibition Center for Architecture, Planning and Construction, No. 1 Do Duc Duc Street, Me Tri, Nam Tu Liem, Hanoi.

Associate Professor Dr. Nguyen Quang Tuyen, Vice Chairman of the Council, Dean of the Faculty of Economic Law, Hanoi Law University will directly participate in the teaching. He is also the author of many books on real estate law and a senior expert of the Vietnam Real Estate Association.

In addition, the training course also had the participation of Associate Professor, Dr. Nguyen Minh Ngoc, Head of the Department of Valuation - Real Estate Business, University of Finance and Marketing, Ho Chi Minh City. He graduated from the University of Real Estate Economics in Warsaw, Republic of Poland. Associate Professor, Dr. Nguyen Minh Ngoc has 24 years of experience in the field of real estate investment and valuation.

The training program will provide participants with important knowledge from theory to practice about the law in real estate valuation. Mastering this knowledge, investors will avoid maximum risks in the real estate investment process.

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