Only 5% of the selling price to be collected as a deposit for off-plan housing in Vietnam according to the latest Law on Real Estate Business?
- Only 5% of the selling price to be collected as a deposit for off-plan housing in Vietnam according to the latest Law on Real Estate Business?
- What is the Information on off-plan housing or building to be disclosed for putting on the market in Vietnam?
- Vietnam: When will regulations on collecting deposits for off-plan housing take effect?
Only 5% of the selling price to be collected as a deposit for off-plan housing in Vietnam according to the latest Law on Real Estate Business?
At the 6th Session of the 15th National Assembly, the National Assembly passed the Law on Real Estate Business (with the approval rate of 94.13% of National Assembly deputies).
The Law on Real Estate Business 2023 includes 10 Chapters, 83 Articles, takes effect from January 1, 2025 and replaces the Law on Real Estate Business 2014.
Notably, the current Law on Real Estate Business 2014 does not specifically regulate deposits when buying, selling, or leasing off-plan housing and building.
According to the new regulations in Clause 5, Article 23 of the Law on Real Estate Business 2023, the content is as follows:
The real estate project investor may receive deposit for the housing or building or its floor area which has met relevant conditions for putting on the market as set out in this Law from the buyer or tenant-buyer provided that the received deposit shall not exceed 5% of the selling price or lease purchase price. The selling price or lease purchase price of the housing, or building or its floor area must be specified in the deposit agreement.
Accordingly, real estate project investors are only allowed to collect a deposit of no more than 5% of the selling price or lease purchase price of off-plan housing and building which has met relevant conditions for putting on the market.
The selling price or lease purchase price of the housing, or building or its floor area must be specified in the deposit agreement.
Off-plan housing and building may only be put on the market when there is one of the documents on land use rights; construction permit; notice of construction commencement; Documents on acceptance of completed construction of technical infrastructure...
Only 5% of the selling price to be collected as a deposit for off-plan housing in Vietnam according to the latest Law on Real Estate Business? (Picture from internet)
What is the Information on off-plan housing or building to be disclosed for putting on the market in Vietnam?
Pursuant to Clause 3, Article 6 of the Law on Real Estate Business 2023 stipulates as follows:
Disclosure of information on real estate and real estate projects to be put on market
1. Before placing any piece of real estate or real estate project on the market, each real estate enterprise shall be required to adequately, honestly and accurately publish the information specified in clauses 2, 3, 4 and 5 of this Article on the housing and real estate market information system as prescribed in this Law and on their website.
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3. Information on off-plan housing or building to be disclosed includes:
a) Type; location, scale, construction schedule and uses of the real estate; information on the shared area if the real estate is an apartment of the apartment building, building or multipurpose building;
b) The fundamental design included in the prefeasibility study report which has been duly appraised in accordance with regulations of the Construction Law; building permit, if required; notice of construction commencement date; documents on the prescribed acceptance testing of finished infrastructure facilities according to the project schedule; and, in case of an apartment of the apartment building or building used for multiple purposes, including for residence, documentary evidences of the acceptance testing of finished foundation in accordance with regulations of the Construction Law;
c) Documents on LURs as prescribed in clause 2 Article 24 of this Law;
d) Agreement on grant of guarantee for sale or lease purchase of off-plan housing;
dd) Certification given by a competent authority that the off-plan housing meets conditions for sale or lease purchase;
e) Limitations on ownership or rights to use the real estate (if any); mortgage of housing, building or building’s floor area, LURs or real estate project to be put on the market.
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Accordingly, real estate enterprise shall be required to adequately, honestly and accurately publish the information about off-plan housing or building mentioned for putting on the market on the Housing Information System, housing and real estate market according to the provisions of this Law and the website of real estate businesses (if any).
Vietnam: When will regulations on collecting deposits for off-plan housing take effect?
Pursuant to the provisions of Article 82 of the Law on Real Estate Business 2023, it clearly states:
Effect
1. This Law comes into force from January 01, 2025.
2. The Law on Real Estate Business No. 66/2014/QH13, as amended by the Law No. 61/2020/QH14, (hereinafter referred to as “Law No. 66/2014/QH13”) ceases to have effect from the date of entry into force of this Law, except the provisions of clauses 2, 3, 5, 6, 7, 9, 12 and 13 Article 83 of this Law.
Thus, the Law on Real Estate Business 2023 takes effect from January 1, 2025. Accordingly, regulations on collecting deposits for off-plan housing will also officially apply from January 1, 2025. January 2025.
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