What information on real estate and real estate projects to be put on market must real estate businesses disclose in Vietnam?

What information on real estate and real estate projects to be put on market must real estate businesses disclose in Vietnam?

Pursuant to Article 6 of the Law on Real Estate Business 2023, businesses engaging in real estate must disclose the following information before putting real estate projects on market:

[1] Information about the real estate project includes:

- Decision on investment guidelines or approval of investment guidelines or approval of the real estate project;

- Decision on land allocation, land lease or land repurposing issued by a competent authority;

- Information on the detailed planning approved by a competent authority;

- The standard form contract used in real estate transactions as prescribed in this Law.

[2] Information about housing and construction works to be formed in the future includes:

- 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;

- 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;

- Documents on LURs as prescribed in clause 2 Article 24 of this Law;

- Agreement on grant of guarantee for sale or lease purchase of off-plan housing;

- Certification given by a competent authority that the off-plan housing meets conditions for sale or lease purchase;

- 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.

[3] Information about existing housing and construction works includes:

- Certificate of housing ownership and residential LURs or certificate of LURs, ownership of housing and other property on land or other certificate of LURs and ownership of property on land as prescribed by the Land Law, which also covers the ownership of housing or building, or  certificate of housing ownership or certificate of ownership of building, except the case specified in point b of this clause;

- With regard to the housing or building existing within a real estate project, only the certificate of LURs issued in accordance with regulations of the Land Law is required to prove the building area of that housing or building;

- 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.

[4] Information on land use rights with infrastructure in real estate projects includes:

- Certificate of LURs issued in accordance with regulations of the Land Law in respect of the land area on which the infrastructure has been constructed within the real estate project;

- Certification given by a competent authority that the rights to use land that already has infrastructure within a real estate project meet conditions for transfer to individuals for building their own housing;

- Documents on completion of construction of technical infrastructure facilities according to the detailed planning and project schedule approved by competent authorities;

- Documents proving that the project investor has fulfilled land-related financial obligations, including land levy, land rent and other relevant taxes, fees and charges (if any), towards the State in accordance with regulations of law in respect of the land area that already has infrastructure within the real estate project to be put on the market;

- Limitations on rights to use land that already has infrastructure within a real estate project (if any); mortgage of LURs and the real estate project to be put on the market.

Note: Any changes in the information which has been disclosed must be updated.

What Information Must Real Estate Businesses Disclose Before Conducting Business? (Image from the Internet)

What are eligibility requirements to engage in real estate business in Vietnam?

Pursuant to Article 9 of the Law on Real Estate Business 2023, the eligibility requirements to engage in real estate business in Vietnam are:

Article 9. Eligibility requirements to engage in real estate business

1. Organizations and individuals in real estate business must establish enterprises in accordance with the law on businesses or establish cooperatives, unions of cooperatives according to the law on cooperatives, engaging in real estate business (collectively referred to as real estate businesses), except as stipulated in Clauses 3 and 4 of this Article.

In the case where organizations and individuals conduct real estate service business, they must comply with the provisions in Clause 5 of this Article.

2. Real estate businesses must meet the following conditions:

a) Not be in the period of being banned from real estate business activities, temporarily suspended, or suspended from activities as per court judgments, decisions of competent state authorities;

b) Ensure the ratio of outstanding credit debt, corporate bond debt to owner's equity;

[...]

Thus, real estate businesses must meet the following conditions:

- Not be in the period of being banned from real estate business activities, temporarily suspended, or suspended from activities as per court judgments, decisions of competent state authorities

- Ensure the ratio of outstanding credit debt, corporate bond debt to owner's equity

- Real estate businesses with real estate projects must have owner equity not less than 20% of total investment for projects with land use under 20 hectares, not less than 15% for projects with land use of 20 hectares or more, and must guarantee capital mobilization capabilities for implementing investment projects

If a real estate business simultaneously carries out multiple projects, it must have sufficient owner equity to distribute and ensure the above-mentioned ratio for each project to execute all projects.

What are real estate business rules in Vietnam?

Pursuant to Article 4 of the Law on Real Estate Business 2023, real estate business is governed by the following principles:

- Openness and transparency; free agreements based on respecting the legal rights and interests of the parties through the contract, without violating prohibited laws.

- Real estate, real estate projects put into business must meet the conditions prescribed by this Law.

- Organizations and individuals can engage in real estate business outside the protective area boundaries as per national defense and security laws.