What is promulgation of the Real Estate Business Law applicable from January 1, 2025 in Vietnam?

What is promulgation of the Real Estate Business Law applicable from January 1, 2025 in Vietnam?

Recently, at the 6th Session of the 15th National Assembly, the National Assembly passed the Real Estate Business Law No. 29/2023/QH15 (Real Estate Business Law 2023).

Real Estate Business Law 2023 includes 10 chapters with 83 articles, regulations on real estate business, rights and obligations of organizations and individuals in real estate business and state management of real estate business.

Real Estate Business Law 2023 does not apply to:

- Agencies and organizations selling houses, construction works, transferring land use rights due to bankruptcy, dissolution, division, separation; Transfer of ownership of houses, construction works, and land use rights due to division, separation, consolidation, or merger according to the provisions of law;

- Agencies, organizations, and units selling, transferring, and leasing real estate that are public assets according to the provisions of law on management and use of public assets;

- Organizations and individuals selling houses, construction works, transferring land use rights according to judgments or decisions of the Court or judgments or decisions of commercial arbitrators or decisions of competent state agencies authority when resolving disputes;

- Organizations and individuals transferring, leasing, subleasing land use rights are not in the case of investors trading land use rights that already have technical infrastructure in real estate projects;

- The leasing of social housing to workers and laborers is done by the Vietnam General Confederation of Labor, which is the agency in charge of the investment project according to the provisions of housing law.

What is promulgation of the Real Estate Business Law applicable from January 1, 2025 in Vietnam? (Image from the Internet)

What are changes in the types of real estate offered for business from 2025 in Vietnam?

According to Article 5 of the Real Estate Business Law 2023, regulations on types of real estate put into business are as follows:

Types of real estate and real estate projects put into business

1. Available housing and housing formed in the future.

2. Existing construction works, construction works formed in the future, including construction works with functions serving the purposes of education, health, sports, culture, office, commerce, services, tourism, accommodation, industry and construction works with mixed service functions.

3. Construction floor area in construction works as prescribed in Clause 2 of this Article.

4. Land use rights with technical infrastructure in real estate projects.

5. Real estate projects.

6. The Government shall detail clauses 2 and 3 of this Article.

According to this Article, from 2025, the types of real estate that will be put into business in Vietnam include:

- Available housing and housing formed in the future.

- Existing construction works, construction works formed in the future, including construction works with functions serving educational, medical, sports, cultural, office, commercial and service purposes, tourism, accommodation, industry and construction works with mixed service functions.

- Construction floor area in existing construction works, construction works formed in the future, including construction works with functions serving the purposes of education, health, sports, culture, etc. office, commercial, service, tourism, accommodation, industrial and construction works with mixed service functions

- Land use rights with technical infrastructure in real estate projects.

- Real estate projects.

Thus, the types of real estate put into business from 2025 have changed compared to the regulations in the currently effective Law on Real Estate Business, the Law on Real Estate Business 2014, specifically:

Types of real estate put into business according to the provisions of the Law on Real Estate Business 2014 include:

1. Existing buildings of organizations or individuals;

2. Off-the-plan buildings of organizations or individuals;

3. Buildings which are public properties to be put on the market permitted by competent agencies;

4. Types of lands whose land-use rights are permitted to be transferred (hereinafter referred to as land), leased, sublet as prescribed in law on land.

What are 08 strictly prohibited acts in real estate business from 2025 in Vietnam?

According to Article 8 of the Real Estate Business Law 2023, prohibited acts in real estate business are as follows:

[1] Real estate business does not qualify under the provisions of this Law.

[2] Forging documents, intentionally falsifying information about real estate or real estate projects put into business.

[3] Falling to disclose information about real estate and real estate projects put into business according to the provisions of law on real estate business.

[4] Fraud, deceit in real estate business.

[5] Collecting money from the sale, lease and purchase of houses, construction works, and the construction floor area of ​​future construction works in contravention of the provisions of this Law; Using money collected from buyers, lease-purchasers of houses, construction projects, and construction floor areas in future construction projects contrary to the provisions of law.

[6] Falling to perform or incomplete fulfillment of financial obligations to the State.

[7] Issuing a real estate brokerage practice certificate and using a real estate brokerage practice certificate in contravention of the law on real estate business.

[8] Collecting, managing, and using fees, charges, and other amounts related to real estate business in contravention of the law.

Best regards!