Decree 96/2024/ND-CP detailing a number articles of the Law on Real Estate Business

THE GOVERNMENT		THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness
No. 96/2024/ND-CP		Hanoi, July 24, 2024

 

DECREE

Detailing a number of articles of the Law on Real Estate Business^[1]

 

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the November 28, 2023 Law on Real Estate Business;

Pursuant to the June 29, 2024 Law Amending and Supplementing a Number of Articles of Land Law No. 31/2024/QH15, Housing Law No. 27/2023/QH15, Law No. 29/2023/QH15 on Real Estate Business, and Law No. 32/2024/QH15 on Credit Institutions;

At the proposal of the Minister of Construction;

The Government promulgates the Decree detailing a number of articles of the Law on Real Estate Business.

 

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details a number of articles of the November 28, 2023 Law on Real Estate Business (below referred to as the Law on Real Estate Business), including:

1. Clauses 2 and 3 of Article 5 on construction works functioning as office buildings, construction works functioning as educational, health, sports, cultural, trade, service, tourist, accommodation or industrial facilities, and mixed-use construction works; and on construction floor areas in construction works.

2. Article 6 on publicization of information about real estate or real estate projects put for business.

3. Points b and c, Clause 2, and Clauses 3 and 4, of Article 9 on debt-to-equity and corporate bond-to-equity ratios of real estate enterprises; equity of real estate enterprises; and small-scale real estate business.

4. Clause 4 of Article 24 on notification to provincial-level state management agencies in charge of real estate business of the project owners’ houses that are eligible for sale or lease-purchase.

5. Clause 7 of Article 31 on notification to provincial-level state management agencies in charge of real estate business of the rights to use land with technical infrastructure in owners’ real estate projects that are eligible for transfer.

6. Article 42 on procedures for transfer of the whole or part of real estate projects.

7. Clause 1 of Article 44 on types of model contracts in real estate business activities.

8. Article 52 on order, procedures and dossiers for transfer of real estate business contracts.

9. Clause 3 of Article 54 on requiring a real estate exchange, before commencing operation, to send a dossier of application for an operation license to the provincial-level state management agency in charge of real estate business of the locality where its headquarters are located.

10. Article 55 on conditions for operation of real estate exchanges.

11. Article 56 on contents of operation of real estate exchanges.

12. Article 60 on management of operation of real estate exchanges

13. Point b, Clause 1 of Article 61 on the condition on physical and technical foundations for real estate brokerage service providers.

14. Clause 3 of Article 70 on organization of real estate brokerage knowledge tests and grant of real estate brokerage practice certificates.

15. Clause 1 of Article 79 on the competence of the Ministry of Construction to assume the prime responsibility for, and coordinate with other ministries, ministerial-level agencies and provincial-level People’s Committees in, studying and proposing the measures for regulating the real estate market as specified in Article 78 of the Law on Real Estate Business.

16. Foreign organizations, foreign individuals, and overseas Vietnamese other than Vietnamese citizens who may rent houses in accordance with the housing law.

Article 2. Subjects of application

1. Organizations and individuals engaged in real estate business in Vietnam.

2. Agencies, organizations and individuals related to real estate business in Vietnam.

Chapter II

DEALING IN READY-BUILT REAL ESTATE AND DEALING IN FUTURE REAL ESTATE

Article 3. Types of construction works, construction floor areas in construction works put for business

1. Ready-built construction works and future construction works put for business specified in Clause 2, Article 5 of the Law on Real Estate Business shall be classified in accordance with the construction law.

2. Construction floor areas in construction works put for business include:

a/ Construction floor areas functioning to serve commercial purposes, including: commercial compartments, commercial lots and construction floor areas functioning to serve commercial purposes with other names;

b/ Construction floor areas functioning as office spaces, including: working offices, office-cum-accommodation units and construction floor areas functioning as office spaces with other names;

c/ Construction floor areas functioning as tourist and accommodation facilities, including: condotels and construction floor areas functioning as tourist and accommodation facilities with other names;

d/ Construction floor areas functioning as mixed-use facilities and construction floor areas functioning for other purposes in construction works as specified in Clause 2, Article 5 of the Law on Real Estate Business.

Article 4. Publicization of information about real estate and real estate projects put for business

1. Time of information publicization: Before signing a real estate sale, transfer, lease or lease-purchase contract or a real estate project transfer contract, a real estate business enterprise shall fully publicize information under Article 6 of the Law on Real Estate Business.

2. Contents of information to be publicized are specified in Clauses 2, 3, 4 and 5, Article 6 of the Law on Real Estate Business; the information specified at Point c, Clause 2, and Points b and d, Clause 3, Article 6 of the Law on Real Estate Business includes the following documents:

a/ A competent state agency’s decision approving the detailed master plan or decision approving the general site plan of the real estate project in accordance with the construction and urban planning laws;

b/ A competent state agency’s notice of results of the appraisal of the construction investment feasibility study report or notice of results of the appraisal of the basic design in accordance with the construction law;

c/ A written commitment on issuance of guarantee specified in Clause 2, Article 26 of the Law on Real Estate Business, made by a domestic commercial bank or foreign bank branch lawfully operating in Vietnam.

3. Methods and forms of information publicization: Real estate enterprises shall fully, truthfully and accurately publicize information on the housing and real estate market information system in accordance with the law on real estate business and on their websites.

4. The publicization of information on the housing and real estate market information system must comply with the Decree detailing a number of articles of the Law on Real Estate Business regarding establishment and management of housing and real estate information systems and databases.

5. Real estate enterprises shall update the publicized information within 5 working days from the date of occurrence of a change in such information.

Article 5. Debt-to-equity and corporate bond-to-equity ratios of real estate enterprises

1. A real estate enterprise shall, based on its equity and investment and business plans, decide to borrow loans from credit institutions and issue corporate bonds as well as decide on its debt-to-equity and corporate bond-to-equity ratios, ensuring that:

a/ It satisfies the requirement on prudential ratios; and complies with the regulations on credit and corporate bonds;

b/ In case the enterprise borrows loans from a credit institution or issues corporate bonds to implement a real estate project for which the enterprise is approved by a competent state agency to act as the project owner, it shall ensure that its total outstanding loans at the credit institution and outstanding corporate bonds and equity required for such project do not exceed the project’s total investment capital;

c/ The total ratio of outstanding loans at credit institutions and outstanding corporate bonds for project implementation does not exceed 4 times the enterprise’s equity for each real estate project that uses less than 20 hectares of land or does not exceed 5.67 times the enterprise’s equity for each real estate project that uses 20 hectares of land or more.

2. Equity of real estate enterprises shall be determined under Clause 1, Article 6 of this Decree.

Article 6. Equity of real estate enterprises and total investment capital of real estate projects

1. Equity of a real estate enterprise, in case the enterprise is selected by a competent state agency to act as the investor or project owner for project implementation in accordance with the investment, auction, bidding, housing, and urban development laws; or is recognized as the housing project owner in accordance with the housing law, shall be determined on the basis of:

a/ Results of its financial statements or results of its reports for audited equity items in the year. In case of unavailability of the results of financial statement or results of reports for audited equity items in the year, it is allowed to use the results of financial statement or results of reports for audited equity items of the preceding year in accordance with the enterprise, audit and accounting laws;

b/ Equity of enterprises established and operating for less than 12 months shall be determined based on their contributed charter capital in accordance with the enterprise law.

2. The total investment capital of real estate projects shall be determined in accordance with the investment law.

Article 7. Small-scale real estate business; dealing in real estate not for business purposes and below small scale

1. An individual engaged in small-scale real estate business must meet the following requirements:

a/ Not being required to formulate an investment project in accordance with the construction and housing laws;

b/ Not falling into the case in which the value of a contract exceeds VND 300 billion and the number of transactions exceeds 10 in a year. In case only one transaction is conducted in a year, its value shall not be counted.

2. Organizations and individuals that sell houses, construction works or construction floor areas in construction works not for business purposes or sell, lease or lease-purchase houses, construction works or construction floor areas in construction works below small scale include:

a/ Individuals who are not required to formulate investment projects in accordance with the construction and housing laws;

b/ Organizations that do not fall into the case in which the value of a contract exceeds VND 300 billion and the number of transactions exceeds 10 in a year. In case only one transaction a year is conducted, its value shall not be counted.

Article 8. Procedures for notifying future houses that are eligible for sale or lease-purchase

1. Before signing a contract for future house sale or lease-purchase, a project owner shall send to the provincial-level state management agency in charge of real estate business of the locality where the project is located a notice stating that the future house is eligible for sale or lease-purchase, enclosed with 1 dossier specified in Clause 2 of this Article.

The above notice must have the contents specified in Appendix XV to this Decree.

2. Such a dossier must comprise copies together with the originals for collation or legally valid electronic copies or certified copies of:

a/ The papers specified in Clause 2, and at Points a and b, Clause 3, Article 24 of the Law on Real Estate Business;

b/ Minutes of acceptance testing of the complete construction of technical infrastructure of the project according to the approved project schedule in accordance with the construction law.

For a condominium or a mixed-use residential building, minutes of acceptance testing of the complete construction of the foundation is required in accordance with the construction law.

3. In case a housing investment project owner has mortgaged a future house or part of the project or the whole project, the determination of the house having undergone mortgage release must comply with Clause 2, Article 183 of Housing Law No. 27/2023/QH15.

4. Within 15 days after receiving the notice enclosed with the dossier specified in Clauses 1 and 2 of this Article, the provincial-level state management agency in charge of real estate business shall check the conditions of future houses of the real estate project put for business in accordance with the Law on Real Estate Business and issue a written reply to the project owner, stating whether or not such houses are eligible for sale or lease-purchase. In case such houses are ineligible for sale or lease-purchase, such agency shall clearly state the reason; and, at the same time, post the reply on the housing and real estate market portal. The reply must have the contents specified in Appendix XVI to this Decree.

In case the provincial-level state management agency in charge of real estate business fails to reply within the law-specified time limit, the real estate enterprise may initiate a lawsuit or file a complaint in accordance with law.

Article 9. Procedures for notifying that land with technical infrastructure in real estate projects is eligible for transfer to individuals for building houses by themselves

1. Before signing a contract on transfer of rights to use land with technical infrastructure in a real estate project to individuals for building houses by themselves, the project owner shall send to the provincial-level state management agency in charge of real estate business of the locality where the project is located a notice stating that the land with technical infrastructure in the real estate project is eligible for transfer of land use rights to individuals for building houses by themselves, enclosed with the dossier specified in Clause 2 of this Article.

2. Such a dossier must comprise copies together with the originals for collation or certified copies or legally valid electronic copies of:

a/ A competent state agency’s decision on investment policy or investment policy approval or investment approval of the real estate project in accordance with the investment, construction and housing laws;

b/ A competent state agency’s decision approving the detailed master plan or general site plan of the real estate project in accordance with the construction and urban planning laws;

c/ Construction permit, in case a competent state agency’s construction permit is required in accordance with the construction law;

d/ A competent state agency’s notice of results of the appraisal of the construction investment feasibility study report or notice of results of the appraisal of the basic design in accordance with the construction law;

dd/ Papers on acceptance testing of completion of construction investment of technical infrastructure facilities in accordance with the construction law;

e/ Electricity supply, water supply, water drainage, waste collection and wastewater treatment service contracts;

g/ A land use rights certificate mentioning the land area with technical infrastructure in the real estate project involving transfer of land use rights to individuals for building houses by themselves in accordance with the land law.

3. Within 15 days after receiving the notice enclosed with the dossier specified in Clauses 1 and 2 of this Article, the provincial-level state management agency in charge of real estate business shall check the conditions for land with technical infrastructure in the real estate project to be eligible for transfer of land use rights to individuals for building houses by themselves in accordance with the Law on Real Estate Business and issue a written reply to the project owner, stating whether or not the land with technical infrastructure in the real estate project is eligible for transfer. In case the land is ineligible for transfer, such agency shall clearly state the reason and, at the same time, post the reply on the housing and real estate market portal for publicization.

In case the provincial-level state management agency in charge of real estate business fails to reply within the law-specified time limit, the real estate enterprise may initiate a lawsuit or file a complaint in accordance with law.

 

Chapter III

PROCEDURES FOR TRANSFER OF REAL ESTATE PROJECTS

Article 10. Procedures for transfer of the whole or part of real estate projects subject to the Prime Minister’s decision on transfer permission

1. The transfer of the whole or part of a real estate project subject to the Prime Minister’s decision on transfer permission must comply with Clause 1, Article 42 of the Law on Real Estate Business.

2. The real estate project owner shall send 1 dossier comprising the papers (copies together with the originals for collation or certified copies or legally valid electronic copies) specified in Clauses 3 and 4 of this Article to the provincial-level People’s Committee or the provincial-level state management agency in charge of real estate business of the locality where the project is located as authorized by the provincial-level People’s Committee.

3. Papers of the real estate project owner as the transferor include:

a/ The project owner’s written request for permission for transfer of the whole or part of the real estate project, made according to the form provided in Appendix XII to this Decree;

b/ A competent state agency’s decision on investment policy or investment policy approval or investment approval of the real estate project in accordance with the investment, construction and housing laws;

c/ A competent state agency’s document on the selection of the investor or project owner in accordance with the investment, auction, bidding, housing and urban development laws; or decision or document on recognition of the project owner in case the project is required to undergo procedures for recognition of the project owner in accordance with the construction and housing laws;

d/ A competent state agency’s decision approving the detailed master plan or general site plan of the real estate project in accordance with the construction and urban planning laws;

dd/ Land-related papers, including a competent state agency’s decision on land allocation or land lease or grant of permission for land repurposing for project implementation in accordance with the land law; and a competent state agency’s minutes of on-field handover of land for project implementation to the project owner in accordance with the land law;

e/ For the mortgaged part of the real estate project or the mortgaged real estate project, a paper showing mortgage release  in accordance with law is required;

g/ Papers on acceptance testing in accordance with the construction law evidencing the completion of the construction investment of relevant technical infrastructure facilities according to the approved schedule, design, detailed master plan and project contents, for case of transfer of the whole infrastructure construction investment project;

h/ A tax agency’s certification that the project owner has fulfilled the project’s land-related financial obligations toward the State, and documents showing that the project owner has paid land-related charges and fees (if any) as specified in Clause 3, Article 40 of the Law on Real Estate Business;

i/ For a state enterprise that transfers the whole or part of a real estate project, papers proving the enterprise’s compliance with the regulations on management and use of state capital invested in production and business at enterprises are required;

k/ Report on the implementation of the real estate project by the time of transfer, made according to the form provided in Appendix XIII to this Decree;

l/ Agreement (if any) on transfer of the whole or part of the real estate project between the transferor and the transferee.

4. Papers of the transferee include:

a/ Enterprise registration certificate or investment registration certificate or paper proving the establishment of the organization in accordance with the enterprise and investment laws;

b/ Financial statements as specified at Point a, Clause 1, Article 6 of this Decree;

c/ Written commitment on continued construction investment and business activities in accordance with the approved project contents;

d/ Papers proving the satisfaction of the conditions specified in Clause 5, Article 40 of the Law on Real Estate Business.

5. Within 45 days after receiving a complete and valid dossier, the provincial-level People’s Committee shall consult the Ministry of Construction and related ministries, sectors and agencies and organize the appraisal of the transfer dossier under Clause 9 of this Article before submitting it to the Prime Minister for consideration and decision. Transfer permission decisions shall be made according to the form provided in Appendix XIV to this Decree.

In case the Prime Minister authorizes the provincial-level People’s Committee, the latter shall base itself on opinions of ministries and sectors to consider and decide to permit the transfer of part of projects.

6. Within 60 days after the competent authority issues the decision to permit the transfer of the real estate project or part thereof, the transferor and the transferee shall complete:

a/ The signing of the transfer contract, made according to the form provided in Appendix IX or Appendix X to this Decree. The contract on transfer of the project or part of the project concurrently serves as the contract on transfer of land use rights of the transferred project or project part, except the case of land lease with annual payment of land rental in which the transfer of land use rights must comply with the land law;

b/ The handover of the transferred project or project part and all dossiers thereof from the transferor to the transferee. The handover between the transferor and the transferee must be recorded in writing.

Upon the expiration of the above time limit, if the transferor and the transferee fail to complete the jobs specified in this Clause and are not entitled to extension of such time limit by the competent authority that has issued the decision permitting the transfer of the real estate project or part thereof, this decision shall cease to be effective.

7. The transferee may continue to implement the real estate project or part thereof after the handover and after fulfilling the obligation to pay taxes, charges and fees (if any).

8. The transferor and the transferee of the real estate project or part thereof shall carry out land registration procedures in accordance with the land law.

9. Within 15 days after receiving the consultation request and dossier from the provincial-level People’s Committee, the consulted agencies shall give their opinions on contents falling under their assigned state management, for the contents specified in Articles 4, 39 and 40 of the Law on Real Estate Business.

In case the transferee is a foreign-invested economic organization specified in Clause 4, Article 10 of the Law on Real Estate Business that has a real estate project wholly or partially transferred in an area on an island, or in a border commune, ward or township or a coastal commune, ward or township or another area that is likely to affect national defense and security in accordance with the regulations on national defense and security, the provincial-level People’s Committee of the locality where the project is located shall consult the Ministry of National Defense and Ministry of Public Security on the assurance of national defense and security.

Article 11. Procedures for transfer of the whole or part of real estate projects subject to provincial-level People’s Committees’ decision on transfer permission

1. The transfer of the whole or part of a real estate project subject to a provincial-level People’s Committee’s decision on transfer permission must comply with Clause 1, Article 42 of the Law on Real Estate Business.

2. The real estate project owner shall send 1 dossier comprising the papers (copies together with the originals for collation or certified copies or legally valid electronic copies) specified in Clauses 3 and 4, Article 10 of this Decree to the provincial-level People’s Committee or the provincial-level state management agency in charge of real estate business of the locality where the project is located as authorized by the provincial-level People’s Committee.

3. Within 30 days after receiving a complete and valid dossier, the provincial-level People’s Committee shall consult related local agencies and organize the appraisal of the transfer dossier under Clause 5 of this Article and consider and decide on transfer permission. Transfer permission decisions shall be made according to the form provided in Appendix XIV to this Decree.

In case the provincial-level state management agency in charge of real estate business is authorized by the provincial-level People’s Committee, within 30 days after receiving a valid dossier, the provincial-level state management agency in charge of real estate business shall consult related local agencies and organize the appraisal of the transfer dossier under Clause 5 of this Article and submit it to the provincial-level People’s Committee for consideration and decision.

4. The collection of opinions on, appraisal of dossiers for, and issuance of decisions permitting, the transfer of whole or part of real estate projects must comply with Clause 3 of this Article.

5. Within 15 days after receiving the consultation request and dossier from the provincial-level People’s Committee or the provincial-level state management agency in charge of real estate business, the consulted agencies shall give their opinions on contents falling under their assigned state management, for the contents specified in Articles 4, 39 and 40 of the Law on Real Estate Business.

In case the transferee is a foreign-invested economic organization specified in Clause 4, Article 10 of the Law on Real Estate Business that has a real estate project wholly or partially transferred in an area on an island, or in a border commune, ward or township or a coastal commune, ward or township or another area that is likely to affect national defense and security in accordance with the regulations on national defense and security, the provincial-level People’s Committee of the locality where the project is located shall consult the Ministry of National Defense and Ministry of Public Security on the assurance of national defense and security.

6. After obtaining the provincial-level People’s Committee’s decision permitting the transfer of the whole or part of the real estate project, the transferor and the transferee shall comply with Clauses 6, 7 and 8, Article 10 of this Decree.

 

Chapter IV

REAL ESTATE BUSINESS CONTRACTS

Article 12. Types of real estate business contracts

1. Types of real estate business contracts specified in Clause 1, Article 44 of the Law on Real Estate Business shall be established and signed in compliance with Clauses 2 and 3 of this Article.

2. Model contracts in real estate business activities specified in this Decree include:

a/ House purchase and sale contract and house lease-purchase contract, made according to the form provided in Appendix I to this Decree;

b/ House lease contract, made according to the form provided in Appendix II to this Decree;

c/ Construction work purchase and sale contract and construction work lease-purchase contract; and contract on purchase and sale and contract on lease-purchase of construction floor area in construction work functioning to serve tourism and accommodation purposes, made according to the form provided in Appendix III to the Decree;

d/ Contract on rent of construction work or construction floor area in construction work functioning to serve tourism or accommodation purposes, made according to the form provided in Appendix IV to this Decree;

dd/ Construction work purchase and sale contract and lease-purchase contract; and contract on purchase and sale and contract on lease-purchase of construction floor area in construction work functioning to serve as an office or for education, health, sports, culture, trade, service or industrial purpose or mixed-used construction work, made according to the form provided in Appendix V to this Decree;

e/ Contract on rent of construction work or construction floor area in construction work functioning to serve as an office or for education, health, sports, culture, trade, service or industrial purpose or mixed-used construction work, made according to the form provided in Appendix VI to this Decree;

g/ Contract on transfer of rights to use land with technical infrastructure in real estate project, made according to the form provided in Appendix VII to this Decree;

h/ Contract on lease or sublease rights to use land with technical infrastructure in real estate project, made according to the form provided in Appendix VIII to this Decree;

i/ Contract on transfer of the whole real estate project, made according to the form provided in Appendix IX to this Decree;

k/ Contract on transfer of part of real estate project, made according to the form provided in Appendix X to this Decree;

l/ Contract on transfer of house or construction work purchase and sale contract or lease-purchase contract, made according to the form provided in Appendix XI to this Decree.

3. When establishing, signing and performing model contracts in real estate business activities, real estate enterprises shall adhere to the following principles:

a/ Being entitled to use real estate business contracts for signing after publicizing information under Article 6 of the Law on Real Estate Business;

b/ Abiding by and submitting to inspection and supervision by agencies competent to manage real estate business in the implementation of regulations and principles on publicization, and use, establishment, signing and performance of model contracts in real estate business activities in accordance with the law on real estate business;

c/ Being obliged to strictly comply with and may not change the contents of contracts in real estate business activities included in the forms provided in the Appendices mentioned in Clause 2 of this Article. In case the model contracts have provisions permitting real estate enterprises to add new contents, the addition of new contents to contracts must adhere to the principles of not violating the prohibitions of law, not being contrary to social ethics, neither altering nor contravening the existing contents of the model contracts;

d/ In case of modification or supplementation of contents of the publicized real estate business contracts, real estate enterprises shall concurrently publicize the modified and supplemented contracts under Article 4 of this Decree before signing;

dd/ In case a real estate business contract used by an enterprise to sign with its customers has contents inconsistent with contents of the model contract, or at variance with the model contract already publicized under this Decree, and does not adhere to the principles specified in Clause 3 of this Article, the violating enterprise shall be handled in accordance with relevant laws and shall pay compensation for damage caused to the customers. If there is a dispute, the disputing parties shall base themselves on the Civil Code and relevant laws to settle it.

4. The signing of real estate business contracts in accordance with the law on real estate business through electronic transactions and with digital signatures must comply with the law on electronic transactions.

Article 13. Procedures and dossiers for transfer of real estate business contracts

1. The transfer of real estate business contracts must comply with the Law on Real Estate Business and this Decree.

2. Procedures and dossiers for transfer of a real estate business contract are as follows:

a/ The transferor and the transferee shall agree to make a contract transfer contract according to the form provided in Appendix XI to this Decree.

The contract transfer contract shall be made in 8 copies (2 copies kept by the project owner, 1 copy submitted to the tax agency, 1 copy submitted to the agency receiving the dossier for grant of the Certificate, 2 copies kept by the transferor, and 2 copies kept by the transferee). In case of notarization of the contract transfer contract, 1 additional copy is required to be kept at the notary practice organization;

b/ Either the transferor or the transferee shall submit a dossier to request a notary practice organization located in the province or centrally run city where the real estate is situated to notarize the contract transfer contract. A dossier of request for notarization must comprise: the original of the contract transfer contract; the original of the contract initially signed with the project owner (in case of transfer of one or more than one house or construction work out of total houses or construction works purchased or leased-purchase under the contract, it is required to submit the original contract or the contract annex showing the transferred house(s) or construction work(s) signed with the project owner); papers proving the money amount paid by the transferor to the project owner; the original or a certified copy of the house or construction work handover minutes (if any), and other papers (if any) in accordance with the regulations on notarization and certification.

In case the transferor is an enterprise with real estate business line, the contract transfer contract is not required to be notarized under this Point, unless the transferor and the transferee wish to have it notarized;

c/ After the notarization (except cases of non-notarization) is carried out under Point b of this Clause, the transferor and the transferee shall pay taxes, charges and fees related to the contract transfer in accordance with the tax, charge and fee laws;

d/ After implementing the provisions of Point c of this Clause, either the transferor or the transferee shall submit a dossier to the real estate project owner to request the latter’s certification of the contract transfer. Such a dossier must comprise: 8 originals of the contract transfer contract enclosed with the original contract (in case of transfer of one or more than one house or construction work out of total houses or construction works purchased or leased-purchase under the contract, it is required to submit the original contract or contract annex showing the transferred house(s) or construction work(s) signed with the project owner); and papers proving tax payment or tax exemption or reduction in accordance with the tax laws;

dd/ Within 5 working days after receiving all papers specified at Point d of this Clause, the real estate project owner shall check and give certification in the contract transfer contract and may not collect any charge. After giving certification in the contract transfer contract, the project owner shall retain 2 originals of the contract transfer contract and return to the applicant 6 copies of the contract transfer contract enclosed with the received papers specified at Point d of this Clause;

e/ After the contract transfer contract is certified by the project owner, the transferee shall continue to exercise the rights and perform the obligations of the purchaser or lessee-purchase toward the project owner under the signed contract and the contract transfer contract;

g/ The transfer of contracts from the second time onward must comply with the procedures specified in this Article, and the transferor shall submit complete dossiers of the previous transfers upon carrying out transfer procedures;

h/ The transferee in the contract transfer contract that is last signed under this Article shall be granted the Certificate by a competent state agency in accordance with the land law.

Chapter V

PROVISION OF REAL ESTATE SERVICES

Section 1

REAL ESTATE EXCHANGES

Article 14. Registration of operation of real estate exchanges

1. Organizations and individuals that wish to establish a real estate exchange shall send a dossier specified in Clause 2 of this Article to the provincial-level state management agency in charge of real estate business of the locality where the head office of such real estate exchange is to be located (by hand-delivery or via postal services or online) in order to be granted an operation license.

2. An operation registration dossier must comprise:

a/ An application for registration of operation of the real estate exchange (made according to the form provided in Appendix XVII to this Decree);

b/ The enterprise registration certificate as specified in Clause 5, Article 9 of the Law on Real Estate Business;

c/ Papers proving the rights to use the head office of the real estate exchange;

d/ A copy of the certificate of completion of the training course on real estate exchange management and administration for real estate exchange managers;

dd/ A list of real estate brokers who have been granted real estate brokerage practice certificates.

3. Within 15 working days after receiving a complete dossier, the provincial-level state management agency in charge of real estate business shall check it and grant an operation license to the real estate exchange (made according to the form provided in Appendix XVIII to this Decree). In case of refusal, the agency shall notify such in writing, clearly stating the reason. After granting the operation license, the provincial-level state management agency in charge of real estate business shall report it to the Ministry of Construction for the latter to post on its website the information on the real estate exchange. Information on the real estate exchange includes: name of the real estate exchange; name of the enterprise establishing the real estate exchange; full name of the real estate exchange manager; and address and telephone number of the real estate exchange.

In case there is a change in its name, head office address, legal representative or other contents in its operation registration dossier, the real estate exchange shall, within 10 working days after deciding on the change, send a written request to the provincial-level state management agency in charge of real estate business of the locality where it has made the establishment and operation registration for re-grant of its operation registration certificate. The provincial-level state management agency in charge of real estate business shall report such to the Ministry of Construction for management and posting of information.

Article 15. Operation conditions of real estate exchanges

1. Operating real estate exchanges must fully satisfy the conditions specified in Article 55 of the Law on Real Estate Business.

2. Legal representatives of enterprises and managers of real estate exchanges shall take responsibility for operation of real estate exchanges. Legal representatives of real estate exchanges may concurrently act as managers of real estate exchanges.

3. Real estate exchanges must maintain stable transaction names and addresses for more than 12 months and technical equipment that satisfies requirements based on their operation contents.

4. Real estate exchanges shall take measures to prevent and combat money laundering and report on money laundering prevention and combat in accordance with the anti-money laundering law.

Article 16. Contents of operation of real estate exchanges

1. Real estate exchanges shall operate according to the contents specified in Article 56 of the Law on Real Estate Business.

2. The certification of real estate transactions is as follows:

a/ Real estate transactions that are directly conducted shall be certified in writing. Real estate transactions that are electronically conducted shall be electronically certified in accordance with the Law on E-Transactions, e-commerce law and relevant laws;

b/ Written certifications of real estate transactions must bear signatures of representatives of enterprises being project owners or real estate owners, representatives of real estate exchanges, and individual brokers, and seals of enterprises required for different transaction forms.

Article 17. Management of operation of real estate exchanges

1. Provincial-level state management agencies in charge of real estate business shall manage, supervise and inspect operation of real estate exchanges under Point a, Clause 1, Article 60 of the Law on Real Estate Business.

2. The grant of operation licenses must comply with Article 14 of this Decree.

3. Re-grant of operation licenses of real estate exchanges

a/ Provincial-level state management agencies in charge of real estate business shall re-grant operation licenses in case such licenses are lost, torn, burnt or otherwise destroyed upon request of real estate exchanges or upon any change in information on real estate exchanges as specified in Clause 3, Article 14 of this Decree;

b/ Real estate exchanges shall send a dossier to the provincial-level state management agency in charge of real estate business of the locality where their operation licenses are granted (by hand-delivery or via postal services or online) for re-grant of their operation licenses. Such a dossier for re-grant of an operation license must comprise: a written request for re-grant of the operation license (made according to the form provided in Appendix XIX to this Decree); and the old operation license (in case the license is damaged);

c/ Within 5 working days after receiving a complete and valid dossier, the provincial-level state management agency in charge of real estate business shall check it and re-grant the operation license (made according to the form provided in Appendix XX to this Decree). The re-granted operation license’s serial number is the same as that of the previously granted license to maintain links with records and data.

In case of refusal to re-grant an operation license, the provincial-level state management agency in charge of real estate business shall notify such in writing, clearly stating the reason.

4. Revocation of operation licenses, termination of operation of real estate exchanges

A provincial-level state management agency in charge of real estate business shall issue a decision to revoke the operation license and terminate the operation of a real estate exchange in the following cases:

a/ The real estate exchange violates the provisions of Article 8 of the Law on Real Estate Business and relevant regulations. Within 7 working days from the date of revocation of the operation license, the provincial-level state management agency in charge of real estate business shall send a notice of the revocation of the operation license of the real estate exchange to the Ministry of Construction and the tax agency of the locality where the real estate exchange has made operation registration.

Within 60 days after its operation license is revoked, the real estate exchange shall fully pay its tax arrears and completely pay other debts; and complete procedures for termination of contracts signed with its employees. For service contracts signed with customers but not yet completely performed, the real estate exchange shall reach agreement with customers on the performance of such service contracts.

b/ In case the real estate exchange willingly terminates its operation, at least 30 days before the projected date of operation termination, it shall send a notice thereof to the provincial-level state management agency in charge of real estate business and the tax agency of the locality where the real estate exchange has made operation registration. Within 7 days after receiving a notice of termination of operation of the real estate exchange, the provincial-level state management agency in charge of real estate business shall notify such in writing to the Ministry of Construction.

Before the date of operation termination, the real estate exchange shall fully pay its tax arrears and completely pay other debts; complete procedures for termination of contracts signed with its employees; and completely perform service contracts signed with its customers. If it is impossible to completely perform service contracts signed with its customers, the real estate exchange shall reach agreement with customers on the performance of such service contracts.

5. Suspension of operation of real estate exchanges

a/ Provincial-level state management agencies in charge of real estate business shall issue decisions to suspend operation of real estate exchanges that fail to fully satisfy the law-specified operation conditions or are willing to suspend their operation;

b/ In case a real estate exchange is willing to suspend its operation, it shall send a report on the operation suspension and operation resumption to the provincial-level state management agency in charge of real estate business, tax agency and statistics office of the locality where the real estate exchange has made operation registration and locates its head office at least 10 working days before the projected date of operation suspension or operation resumption. The suspension period must not exceed 2 years;

c/ Within 7 days after issuing a decision to suspend the operation of a real estate exchange, the provincial-level state management agency in charge of real estate business shall send a notice of the suspension of operation of the real estate exchange to the Ministry of Construction and the tax agency of the locality where the real estate exchange has made operation registration;

d/ A report on the operation suspension must have the following principal contents: name of the real estate exchange; serial number and date of grant of the operation license; head office address; suspension period, with starting date and ending date; reason(s) for the operation suspension; debt payment and settlement of service contracts with customers and contracts signed with brokers and employees working at the real estate exchange.

dd/ During the suspension period, a real estate exchange shall fully pay its tax arrears, continue to pay other debts, and complete the performance of contracts signed with brokers and employees, unless otherwise agreed upon.

For service contracts signed with customers but not yet completely performed, the real estate exchange shall reach agreement with customers on the performance of such service contracts.

Section 2

REAL ESTATE BROKERAGE AND ISSUANCE OF REAL ESTATE BROKERAGE PRACTICE CERTIFICATES

Article 18. Conditions on physical and technical foundations for real estate brokerage service enterprises

Real estate brokerage service enterprises must have physical and technical foundations suitable to their operation.

1. Physical foundations are operating locations or offices of enterprises, with their names and transaction addresses existing for more than 12 months.

2. Technical foundations are machinery and equipment serving the operation of enterprises.

Article 19. Organization of tests of real estate brokerage knowledge and issuance of real estate brokerage practice certificates

1. People’s Committees of provinces and centrally run cities (below referred to as provincial-level People’s Committees) shall organize tests of real estate brokerage knowledge (below referred to as tests) and issue certificates.

2. The provincial-level state management agency in charge of real estate business shall receive candidates’ test registration applications (made according to the form provided in Appendix XXI to this Decree) and send a written request to the provincial-level People’s Committee for the latter to permit the candidates to participate in tests. The provincial-level People’s Committee shall, based on the number of registered candidates and practical conditions, organize tests.

3. Each year, the provincial-level People’s Committee shall organize at least 1 test, depending on the number of candidates registered for tests (ensuring that at least 10 candidates participate in a test).

In case the number of candidates is smaller than 10 and every candidate who has submitted the test registration dossier to the Testing Council in one locality wishes to participate in the test organized by the Testing Council of another locality, the provincial-level People’s Committee shall issue a written request to the provincial-level People’s Committee of another locality for the latter to permit such candidate to participate in the test in such locality.

4. At least 30 days before the test, the provincial-level People’s Committee shall post on its website a notice of a plan on organization of the test, conditions and dossier for test participation registration, time, location, and other necessary information on the test.

5. Test registration fee:

a/ Candidates shall pay test registration fee to the provincial-level People’s Committee or as stated in the notice of the provincial-level People’s Committee;

b/ Based on the proposal of the Chairperson of the Testing Council, the Chairperson of the provincial-level People’s Committee shall specify the test registration fee level for each test, depending on the number of candidates registered for the test, to cover expenses for organization of the test;

c/ The Testing Council may use test registration fee to cover expenses for test organization and pay remuneration to its members. The payment and final settlement of test registration fees must be approved by the Chairperson of the Testing Council.

Article 20. Councils for organizing tests of real estate brokerage knowledge and issuance of real estate brokerage practice certificates (below referred to as Testing Councils)

1. A Testing Council shall be formed under the decision of the Chairperson of the provincial-level People’s Committee for each test. A Testing Council must have at least 5 members, including:

a/ Its Chairperson being a leader of the provincial-level People’s Committee;

b/ Its Vice Chairperson being a leader of the provincial-level state management agency in charge of real estate business;

c/ Its members who are proposed by leaders of the provincial-level state management agency in charge of real estate business, including: a representative of the provincial-level state management agency in charge of real estate business; a representative of the Real Estate Association (if any), a representative of the Real Estate Brokerage Association (if any), lecturers of education institutions having the function of providing training and further training in real estate brokerage practice knowledge (if any); real estate brokerage experts of real estate brokerage service enterprises and real estate exchanges (if any), or other experts (if any).

2. Testing Councils shall direct and urge the organization of tests in accordance with law and plans.

3. Powers and responsibilities of the Chairperson of a Testing Council:

a/ To submit to the provincial-level People’s Committee for approval the plan on organization of the test, test regulations, questions and answer keys;

b/ To check the estimated funds for organization of the test and the test registration fees collected from candidates, and submit them to the Chairperson of the provincial-level People’s Committee for approval;

c/ To approve test results, including the list of candidates having passed the test and the list of candidates having failed the test;

d/ To report to the Chairperson of the provincial-level People’s Committee on the process of organization of the test;

dd/ To personally direct the organization of the test and take responsibility before the Chairperson of the provincial-level People’s Committee and before law for results of the organization of the test;

e/ To approve the final settlement of funds for organization of the test.

4. Members of the Testing Council shall directly participate in all activities of the test, subject to task assignment by the Chairperson of the Testing Council, and take responsibility before the Chairperson of the Testing Council for the assigned tasks, and may receive remuneration.

Article 21. Tasks and powers of a Testing Council

1. To issue the plan on organization of the test and decide on adjustments to this plan when necessary; to issue testing regulations and documents related to the test; to organize the compilation of questions and answer keys for the test under the guidance of this Decree.

2. To estimate funds for organizing the test and the test registration fee level to be collected from candidates in adherence to the principles of covering sufficient expenses for the test and complying with the State’s policies and regimes.

3. To receive and check dossiers, and make a list of candidates who are eligible for participation in the test, and a list of candidates who are ineligible for participation in the test.

4. To organize the test, invigilation, marking of test papers, and re-marking of test papers under regulations for candidates who request re-marking of their test papers under the direction of the Chairperson of the Testing Council according to the plan approved by the provincial-level People’s Committee; to summarize test results, reporting on the process of organization of the test; and making a list of candidates having passed the test and a list of candidates having failed the test.

Article 22. Test contents and questions

1. Except the case specified in Clause 2 of this Article, candidates participating in a test in order to obtain a certificate shall take the test for the following mandatory contents:

a/ Basic knowledge, including: real estate business regulations; land-related regulations; investment regulations; civil law’s provisions on real estate business; notarization law’s provisions on real estate business; enterprise law’s provisions on real estate business; regulations on taxes and charges in real estate transactions; anti-money laundering law’s provisions in real estate business; regulations on handling of administrative violations in real estate business; overview of the real estate market; and real estate prices and real estate price consultancy;

b/ Professional knowledge, including: overview of real estate brokerage services; real estate brokerage processes and skills; and handling of real-life situations.

2. Candidates who possess real estate brokerage certificates issued by foreign authorities that remain valid are required to take the test of basic knowledge only, but are not required to take the test for professional knowledge.

3. The banks of test questions must be suitable to contents of the Ministry of Construction-issued framework program for training and further training in real estate brokerage practice knowledge.

4. The banks of questions shall be managed under the regulations applicable to confidential documents.

Article 23. Form and duration of, and language used in tests

1. Form and duration of a test:

a/ For the test of basic knowledge: written test, multiple-choice test, or a combination of these two forms, with a duration of 120 minutes;

b/ For the test of professional knowledge: Written test, multiple-choice test, or a combination of the two forms, with a duration of 120 minutes.

2. Language used in a test: Vietnamese (an interpreter is allowed for foreign candidates).

Article 24. Candidates

Candidates include Vietnamese citizens, overseas Vietnamese as defined in the law on citizenship, and foreigners who fully satisfy the conditions for participation in tests specified in Articles 25 and 26 of this Decree.

Article 25. Conditions for participation in tests

A candidate participating in a test must fully satisfy the following conditions:

1. Having full civil act capacity, neither being examined for penal liability nor serving an imprisonment sentence.

2. Possessing an upper-secondary education or higher degree.

3. Possessing a certificate of completion of a training course on real estate brokerage practice knowledge.

4. Having submitted a test registration dossier and paid test registration fee to the provincial-level People’s Committee.

Article 26. Test registration dossier

1. A test registration application (made according to the form provided in Appendix XXI to this Decree), affixed with the candidate’s 4cm x 6cm color photo, taken no more than 6 months by the date of registration.

2. A certified copy of the people’s identity card or citizen’s identity card or identity card of the candidate in accordance with the law on identity; a paper proving the candidate’s Vietnamese citizenship or a certificate showing that the candidate is a person of Vietnamese origin in accordance with the law on citizenship, or the candidate’s passport (or a copy together with the original for collation).

3. A certified copy of the certificate of completion of a training course on real estate brokerage practice knowledge.

4. A certified copy of the upper-secondary education (or equivalent) or higher degree.

5. The candidate’s two 4cm x 6cm color photos, taken no more than six months by the date of registration, two stamped envelopes, showing the recipient’s full name, phone number, and address.

6. A certified copy and translation of the certificate issued by a foreign authority (for foreigners and Vietnamese who possess real estate brokerage practice certificates issued by foreign authorities that remain valid).

Article 27. Test registration

1. Those who wish to obtain a certificate may register for participation in tests nationwide.

2. Every year, those who wish to obtain a certificate shall submit test registration applications under Clause 3, Article 19 of this Decree.

3. Before each test, a candidate shall personally submit a test registration dossier specified in Article 26 of this Decree, and pay the test registration fee specified at Point a, Clause 5, Article 19 of this Decree. The time and place of dossier submission shall be stated in the notice of the provincial-level People’s Committee.

Article 28. Eligible test papers

1. An eligible test paper is a test paper of the candidate who gets:

a/ A score of 70 points or higher (out of 100 points), for the test of basic knowledge;

b/ A score of 70 points or higher (out of 100 points), for the test of professional knowledge.

2. Candidates with eligible test papers as specified in Clause 1 of this Article will be considered as eligible for issuance of certificates.

Article 29. Approval and announcement of test results

1. The Chairperson of the Testing Council shall, based on the test marking results of each test section, approve test results for each test.

2. Test results shall be notified at, and on the website of, the provincial-level People’s Committee.

3. Within 10 days after test results are notified, if a candidate wishes to request re-marking of his/her test papers, he/she shall submit a written request to the provincial-level People’s Committee or comply with the notice of the provincial-level People’s Committee. The Testing Council shall organize the re-marking of test papers and report thereon to the Chairperson of the provincial-level People’s Committee for additional approval of candidates who have passed the test.

4. Within 20 days after notifying test results, the provincial-level People’s Committee shall organize re-testing for the candidates who have failed the test. Candidates shall retake the test section(s) they have failed. For each test, re-testing may be organized only once, and candidates are not required to pay fees for re-testing.

Article 30. Preservation of dossiers and documents

1. The provincial-level People’s Committee shall preserve dossiers and documents related to each test for a duration of:

a/ Five years, for dossiers related to the organization of the test (Decision on the formation of the Testing Council; test regulations; questions and answer keys for each subject; list of invigilators, and other related documents); dossiers related to marking of test papers: list of candidates participating in the test, list of officers engaged in marking of test papers; test papers of candidates; dossiers of candidates eligible for participation in the test; summary list of test results, and summary list of results of re-marking test papers (if any) for each subject of candidates;

b/ Three years, for dossiers of candidates who fail the test and candidates who have registered for participation but fail to participate in the test.

2. The provincial-level People’s Committee shall preserve dossiers of individuals who are issued certificates for 10 years from the date of issuance of certificates.

Article 31. Issuance of real estate brokerage practice certificates

1. A candidate who gets the scores specified in Article 28 and submits a complete dossier specified in Article 26 of this Decree may be issued a certificate.

2. Procedures for issuing certificates:

a/ The Chairperson of the Testing Council shall send to the Chairperson of the provincial-level People’s Committee a report on the process of organizing the test and approve test results;

b/ Based on the report of the Chairperson of the Testing Council and test results approved by the Chairperson of the Testing Council, the Chairperson of the provincial-level People’s Committee shall approve the list of individuals to be issued certificates (using the form provided in Appendix XXII to this Decree). Within 10 working days after receiving a complete and valid dossier, the provincial-level People’s Committee shall organize the printing, signing, and issuance of certificates;

c/ The provincial-level People’s Committee shall preserve dossiers of individuals who are issued certificates under Clause 2, Article 30 of this Decree.

3. Fees for issuance of certificates must comply with the law on charges and fees; and individuals shall pay these fees directly at the provincial-level People’s Committee or as announced by the provincial-level People’s Committee.

4. Certificates are valid for use nationwide for 5 years from the date of issuance.

5. The form of certificates is provided in Appendix XXIII to this Decree.

6. Certificates shall be delivered to individuals at provincial-level People’s Committees or at places announced by provincial-level People’s Committees. Certificates shall be sent by post to those who cannot receive them in person.

7. Certificate holders shall:

a/ Refrain from altering or erasing contents of certificates;

b/ Refrain from leasing or lending certificates, or allowing other organizations or individuals to use their names and certificates to carry out activities related to real estate brokerage practice;

c/ Refrain from using certificates for other purposes not provided by law.

8. Every quarter (before the 15^th of the first month of the quarter following the reporting quarter), provincial-level People’s Committees shall send to the Ministry of Construction a report on the organization of tests and lists of individuals who are issued certificates in accordance with the Decree detailing a number articles of the Law on Real Estate Business regarding the development and management of the information system and database on housing and real estate market and, at the same time, post on their websites the lists of candidates who are issued certificates (using the form provided in Appendix XXVI to this Decree).

9. In case a certificate is lost, torn, burnt, or destroyed due to disasters or force majeure events, it shall be re-issued (using the form provided in Appendix XXIV to this Decree). The serial number of the re-issued certificate is that of the initial certificate. The validity period of the re-issued certificate is 5 years from the date of issuance of the initial certificate. Requesters for re-issuance of certificates shall pay fees in accordance with the law on charges and fees to provincial-level People’s Committees. A dossier of request for re-issuance of a certificate shall be submitted to the provincial-level People’s Committee that has issued the certificate, comprising:

a/ A request for re-issuance of the certificate, with the requester’s photo (made according to the form provided in Appendix XXVII to this Decree);

b/ Two 4cm x 6cm photos of the requester, taken no more than 6 months by the date of the dossier submission;

c/ The initial certificate (if any).

Within 10 working days after receiving a complete dossier specified in Clause 9 of this Article, the provincial-level People’s Committee that has issued the initial certificate shall check the dossier and issue a new certificate.

Article 32. Expiring certificates

1. Expiring certificate holders may not continue practicing real estate brokerage.

2. For the holder of a certificate that has expired or is about to expire, if wishing for re-issuance of the certificate, he/she shall take a test according to the following provisions:

a/ In case of registering for re-testing in the locality where he/she has been issued the certificate, he/she is only required to take the test of basic knowledge in accordance with this Decree; the serial number of the re-issued certificate (using the form provided in Appendix XXV to this Decree); the serial number of the re-issued certificate is that of the initial certificate; on the first page of the re-issued certificate, it is required to clearly state that the certificate is issued for the second time or third time;

b/ In case of registering for re-testing in another locality, he/she shall carry out procedures for the test as for issuance of a new certificate but is only required to take the test of basic knowledge.

3. A test registration dossier must comprise:

a/ The documents specified in Article 26 of this Decree;

b The initial certificate (the original) in case it has expired, or a certified copy in case the certificate has yet to expire.

4. The test registration must comply with Article 27 of this Decree.

5. Based on practical conditions, the provincial-level People’s Committee shall organize a separate test for those whose certificates have expired or arrange them to take the test together with those who take the test for certificates for the first time.

Article 33. Revocation of real estate brokerage certificates

1. A certificate holder will have his/her certificate revoked in the following cases:

a/ He/she loses his/her civil act capacity;

b/ He/she provides dishonest information in the dossier for issuance of certificate;

c/ The certificate is altered or erased;

d/ The certificate holder lends or leases the certificate to another person for practicing real estate brokerage;

dd/ He/she violates Article 8 of the Law on Real Estate Business.

2. The provincial-level People’s Committee that has issued a certificate shall revoke such certificate; in case the certificate is revoked by another competent agency as provided by law, this agency shall send a notice thereof to the provincial-level People’s Committee that has issued the certificate for implementing Clause 3 of this Article.

3. After issuing the decision to revoke the certificate, the provincial-level People’s Committee that has issued the certificate shall send a notice to the person whose certificate is revoked for the latter to return the certificate. At the same time, the provincial-level People’s Committee shall announce on its website the name of the person whose certificate is revoked and remove from its website the name of such person.

Chapter VI

REGULATION OF THE REAL ESTATE MARKET

Article 34. Evaluation of the situation of the real estate market for use as a basis for proposing the regulation of the real estate market

1. The Ministry of Construction shall, as directed by the Government or based on price indices, real estate transaction volumes, and other socio-economic statistical indices and data of other sectors and fields related to the real estate market, evaluate the situation of the real estate market and propose the regulation of the real estate market.

2. The research, summarization of evaluation reports, and proposals for measures for regulating the real estate market shall be conducted when the real estate transaction price indices see an increase or a decrease by more than 20% within 3 months; or when the real estate market undergoes other fluctuations affecting socio-economic stability.

Article 35. Proposals for measures for regulating the real estate market

1. In pursuance to Clause 2, Article 34, within 15 days, the Ministry of Construction shall assume the prime responsibility for, and coordinate with other ministries, ministerial-level agencies and provincial-level People’s Committees in, summarizing evaluation reports and proposing measures for regulating the real estate market for submission to the Government for consideration and decision, including the contents specified in Clauses 2 thru 7 of this Article.

2. The Ministry of Construction shall propose measures for regulating the real estate market regarding policies and laws on urban planning, construction, housing, and real estate business; programs and plans for urban, housing, and real estate development; and the structure of real estate products.

3. The Ministry of Planning and Investment shall propose measures for regulating the real estate market regarding investment and bidding policies and laws.

4. The Ministry of Natural Resources and Environment shall propose measures for regulating the real estate market regarding land policies and laws.

5. The Ministry of Finance shall propose measures for regulating the real estate market regarding policies and laws on taxes, finance, securities, and corporate bonds.

6. The State Bank of Vietnam shall propose measures for regulating the real estate market regarding credit policies and laws.

7. Provincial-level People’s Committees shall review the implementation of real estate projects in their localities and by enterprises, and propose measures for regulating the real estate market in their localities.

Article 36. Submission to competent authorities for decision on measures for regulating the real estate market

1. The Ministry of Construction shall summarize evaluation reports and propose measures for regulating the real estate market for submission to the Government for consideration and decision.

2. In case measures for regulating the real estate market fall beyond the Government’s competence, the Ministry of Construction shall report such to the Government for the latter to submit them to the National Assembly or National Assembly Standing Committee for consideration and decision.

Article 37. Regulation of the real estate market

1. The Ministry of Construction shall assume the prime responsibility for, and coordinate with other ministries, ministerial-level agencies and provincial-level People’s Committees in, implementing measures for regulating the real estate market based on decisions of competent agencies specified in Clauses 2 and 3, Article 79 of the Law on Real Estate Business.

2. The regulation of the real estate market aiming to ensure the supply-demand balance and appropriate structure of real estate products in each stage of the market shall also be implemented through the formulation, submission for approval, and implementation of land-use master plans and plans, construction master plans, and urban and housing development programs and plans.

 

Chapter VII

IMPLEMENTATION PROVISIONS

Article 38. Transitional provisions

1. Real estate brokerage practice certificates issued before the effective date of the Law on Real Estate Business remain valid for the duration stated therein. If, by the effective date of this Decree, such a certificate expires or the certificate holder wishes for issuance of a new certificate, the provisions of this Decree shall apply.

2. For a real estate project for which the provincial-level People’s Committee has issued a document approving or permitting the project owner to transfer the right to use land with technical infrastructure thereon in the form of dividing land parcels for sale to individuals for self-construction of houses under regulations before the effective date of the Law on Real Estate Business, such document must continue to apply but must ensure compliance with Articles 28 and 29; Clauses 1, 2, 3, 4, 5, 7, and 8 of Article 31; and Article 32, of the Law on Real Estate Business, and Article 9 of this Decree.

In case the real estate project owner has submitted a dossier of request for grant of permission for transfer of the right to use land with technical infrastructure thereon in the form of dividing land parcels for sale to individuals for self-construction of houses before the effective date of this Decree but has not yet received the permission document from the competent state agency, the project owner shall supplement the dossier, if it is incomplete, in accordance with the Law on Real Estate Business and this Decree for consideration by the competent state agency.

3. The provisions of Clause 1, Article 5 of this Decree do not regulate or apply to outstanding loans at credit institutions or outstanding corporate bond debts of real estate project owners, that arose before the effective date of this Decree. In case the outstanding loans at credit institutions or outstanding corporate bond debts of the owner for each real estate project, which  that arose before the effective date of this Decree, exceed the limits specified in Clause 1, Article 5 of this Decree, the project owner may mobilize capital through borrowing loans at credit institutions or issuing corporate bonds to implement the project only when complying with Clause 1, Article 5 of this Decree.

4. The provisions of Point b, Clause 1, and Point b, Clause 2, Article 7 of this Decree do not apply to individuals or organizations that have entered into contracts for the purchase/sale, or acquisition of real estate, including also future real estate in real estate projects before the effective date of this Decree.

5. Houses and construction works in real estate projects approved by competent state agencies under law before the effective date of the Law on Real Estate Business shall continue to be put for business according to the approved contents and objectives of the projects. These projects are not required to meet the conditions for future houses and construction works put for business as provided in Clause 5, Article 24 of the Law on Real Estate Business.

In case a project undergoes investment policy adjustment in accordance with the law after the effective date of the Law on Real Estate Business, it must comply with the investment policy approved for adjustment.

6. Contracts on purchase and sale of commercial houses that have been transferred in accordance with the housing law before the effective date of the Law on Real Estate Business shall continue to be transferred according to the order and procedures specified in Article 13 of this Decree.

Article 39. Implementation responsibility

1. The Ministry of Construction shall:

a/ Guide, monitor, and urge the implementation of the Law on Real Estate Business and this Decree;

b/ Assume the prime responsibility for, and coordinate with related agencies in, studying, and promulgating within its competence, or submitting to competent authorities for promulgation, legal documents on real estate business;

c/ Assume the prime responsibility for, and coordinate with related agencies in, carrying out inspection and examination, and handling violations in the field of real estate business in accordance with law;

d/ Study and formulate real estate transaction price indexes suitable to the conditions for and and capacity of collecting, compiling statistics of, and synthesizing, data on housing and the real estate market in each period;

dd/ Perform other tasks as provided in the Law on Real Estate Business and this Decree, or as assigned by the Government or the Prime Minister.

2. The Ministry of Finance shall formulate, and guide the implementation of, regulations related to taxes, charges and fees in the field of real estate business.

3. Ministries and sectors shall, within the ambit of their assigned functions and tasks, guide, urge, and organize the implementation of the Law on Real Estate Business and this Decree.

4. Provincial-level People’s Committees shall:

a/ Organize and direct the implementation of the Law on Real Estate Business and this Decree in their localities;

b/ Identify areas where real estate project owners are permitted to transfer the right to use land with technical infrastructure thereon to individuals for self-construction of houses, as provided in Clause 6, Article 31 of the Law on Real Estate Business;

c/ Decide to permit the transfer of the whole or part of real estate projects in accordance to the Law on Real Estate Business and this Decree; assume the prime responsibility for appraising and submitting dossiers of request for transfer of the whole or part of real estate projects that fall within the Prime Minister’s competence to permit project transfer, unless the Prime Minister authorizes provincial-level People’s Committees to decide on transfer of the whole or part of real estate projects;

d/ Organize or direct the inspection, examination, and handling of violations in the field of real estate business within their competence and in accordance with law;

dd/ Report on the real estate market situation in their locality once every 3 months and as prescribed by the Decree detailing a number of articles of the Law on Real Estate Business regarding the establishment and management of housing and real estate market information systems and databases, or upon request, to the Ministry of Construction for summarization to reporting to the Government and the Prime Minister;

e/ Direct and organize the receipt and settlement administrative procedures in the electronic environment within their competence on provincial-level public service portals, ensuring compliance with regulations on performance of administrative procedures in the electronic environment;

g/ Perform other tasks provided in the Law on Real Estate Business and this Decree, or as assigned by the Government or the Prime Minister.

Article 40. Effect

1. This Decree takes effect on August 1, 2024.

2. The Government’s Decree No. 02/2022/ND-CP of January 6, 2022, detailing the implementation a number of articles of the Law on Real Estate Business, ceases to be effective on the effective date of this Decree.

3. To annul Clause 7, Article 4 of the Government’s Decree No. 11/2013/ND-CP of January 14, 2013, on the management of urban development investment, which was amended and supplemented under Clause 4, Article 4 of the Government’s Decree No. 35/2023/ND-CP of June 20, 2023, amending and supplementing a number of articles of the decrees in the fields under the state management by the Ministry of Construction.

4. In case provisions in the Government’s Decrees, the Prime Minister’s Decisions, and legal documents promulgated by ministries, sectors, and provincial-level People’s Committees before the effective date of this Decree, have contents falling within the scope of regulation of this Decree but different from the provisions of this Decree, the provisions of this Decree shall prevail.

5. In case Vietnamese citizens have been issued personal identification numbers and the national population database and the database on investment registration and business registration are connected and operated, the personal identification numbers may be used in replacement of personal identification papers (people’s identity card, citizen identity card, identity card, passport, and other personal identification papers as prescribed by relevant laws) upon performance of procedures related to real estate business activities in accordance with the law on real estate business.

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
TRAN HONG HA

* The Appendices to this Decree are not translated.