Regulations on conducting existing housing and building business transactions in Vietnam as of January 1, 2025

Regulations on conducting existing housing and building business transactions in Vietnam as of January 1, 2025 (Internet image) 

Regarding this matter, LawNet would like to answer as follows:

On November 28, 2023, the National Assembly officially passed the Law on Real Estate Business 2023

Regulations on conducting existing housing and building business transactions in Vietnam as of January 1, 2025

According to Article 16 of the Law on Real Estate Business 2023, regulations on conducting existing housing and building business transactions in Vietnam are as follows:

- The parties to business contract and transaction involving the housing or building or its floor area shall be required to comply with the following provisions:

= They must prepare adequate information and documents necessary for conducting the transaction and signing the contract in accordance with the Law on Real Estate Business 2023 and the Civil Code 2015; meet eligibility requirements for real estate business laid down in the Law on Real Estate Business 2023; and are eligible to buy, lease or enter into lease purchase of housing, buildings or their floor areas as prescribed in the Law on Real Estate Business 2023 and the Housing Law;

= Before signing the contract, the seller, lessor or landlord shall provide adequate information and legal documents on the housing, building or its floor area for the buyer, lessee or tenant-buyer;

= If the real estate is traded through the real estate trading floor, the provisions of Section 1 Chapter VII of the Law on Real Estate Business 2023 shall also apply;

= If the contract notarization or certification is required, contract notarization or certification procedures shall be followed in accordance with regulations of law on notarization and certification.

- Contractual parties shall strictly comply with terms and conditions of the signed contract, and fulfill all financial obligations and other obligations towards to the State in accordance with regulations of law.

- The parties to a contract for sale and purchase or lease purchase of the housing, building or its floor area may reach into an agreement to authorize one of them to apply to a competent authority for issuance of certificate of LURs and ownership of property on land in respect of such housing, building or its floor area. In case of purchase or lease purchase of the housing, building or its floor area from a project investor, the project investor shall follow procedures with a competent authority for issuance of certificate of LURs and ownership of property on land to the buyer or tenant-buyer, unless the buyer or tenant-buyer voluntarily follows such procedures.

- Competent authorities shall consider issuing such certificate of LURs and ownership of property on land in accordance with the Land Law.

More details can be found in Law on Real Estate Business 2023 takes effect on January 1, 2025.

The Law on Real Estate Business 2014 expires from the effective date of the Law on Real Estate Business 2023, except for the cases specified in Clauses 2, 3, 5, 6, 7, 9, 12 and 13 Article 83 of the Law on Real Estate Business 2023.

To Quoc Trinh

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