On August 6, in Hanoi, the Vietnam Association of Realtors organized a workshop to contribute opinions on the draft revised Law on Real Estate Business.
Speaking at the workshop, Ms. Hoang Thu Hang - Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) - said that the draft law consists of 10 chapters, 61 articles, and is expected to cut 20 articles compared to the current Real Estate Business Law. The amended content focuses on four main groups including decentralization and delegation of power; reducing and simplifying administrative procedures; removing difficulties and obstacles from practice; and promoting digital transformation.
According to Ms. Hang, the draft decentralizes the authority to decide to allow the transfer of a part of real estate projects from the Prime Minister to the Provincial People's Committee, and at the same time reduces 9 out of a total of 31 investment and business conditions.
For new contents, the draft proposes to transfer the regulation on "residential housing" from the Housing Law to the Real Estate Business Law. The scope of real estate business contracts allowed to be transferred is also expanded, including allowing the transfer of contracts for works that have been completed and put into use but have not been granted land use right certificates.
The draft also supplements regulations on a unique identification code for each real estate, used throughout the project life cycle; allowing local housing development funds to carry out real estate business activities without having to establish businesses.
Regarding Resolution No. 21-NQ/TW, the draft expands the scope of real estate purchases for foreign individuals and organizations and Vietnamese people residing abroad in the direction of being allowed to buy apartments and tourist apartments, but still not allowed to buy houses attached to land use rights.
To remove obstacles in project transfer, the draft amendment stipulates the completion of financial obligations for land according to the guidance referred to investment law. For projects being mortgaged, investors are not required to release the mortgage before transfer if there is a written approval from the mortgagee.
In addition, regulations on payment progress when buying and selling real estate formed in the future, such as the first payment level not exceeding 30% of the contract value and the total amount paid before handover not exceeding 70%, are directly included in the law. The draft also stipulates that the remaining 5% of the contract value is transferred to a payment security account or applies a form of security to perform other obligations according to the agreement and is only transferred to the investor after the buyer is granted a certificate.
At the workshop, representatives of Sun Group contributed opinions, the draft law has supplemented regulations that investors must carry out procedures to notify state management agencies before putting commercial real estate products, which are construction works and construction floor area. According to businesses, this is a procedure not yet regulated in the current Real Estate Business Law and is also not consistent with the general policy on reform and reduction of administrative procedures.
Representatives of Sun Group proposed that the drafting agency consider removing this regulation for commercial real estate products. According to the business, maintaining the procedure for notifying eligibility for housing is necessary to ensure the rights of customers and strengthen state management. However, for commercial real estate products, in practice in the past time, there have not been inadequacies in management to the extent that a new administrative procedure is needed. Therefore, the addition of this regulation is considered not really necessary and may increase the burden of procedures for businesses.
Sun Group also proposed to allow the parties to agree on inheriting and continuing to fulfill the remaining financial obligations when transferring the project, instead of requiring the transferring party to complete all financial obligations before the transfer time.
