Enterprises must fully, honestly and accurately disclose information about real estate before putting it into business.

Continuing the 6th Session program, on the morning of October 31, under the chairmanship of National Assembly Chairman Vuong Dinh Hue, the National Assembly discussed in the hall a number of contents with different opinions of the draft Law on Real Estate Business (amended).

Member of the National Assembly Standing Committee, Chairman of the National Assembly Economic Committee Vu Hong Thanh presented the Report on explanation, acceptance and revision of the draft Law.

According to Chairman of the Economic Committee Vu Hong Thanh, regarding the content of public disclosure of real estate information put into business, there are opinions suggesting the regulation that "Real estate enterprises must publicize information and be responsible for the completeness, honesty and accuracy of the information that must be publicized". There are opinions suggesting specific regulations on where to publicize information about real estate.

Enterprises must publicly disclose full, honest and accurate information about real estate before putting it into business. Image 1 — Vice Chairman of the National Assembly Nguyen Duc Hai moderated the discussion.

In response to the opinions of the National Assembly Deputies, the National Assembly Standing Committee has revised the provisions of the draft Law to ensure the responsibility of real estate businesses in fully, honestly and accurately disclosing information about real estate and real estate projects before putting them into business; information disclosure is one of the conditions for real estate business. At the same time, the draft Law has been supplemented with Clause 6, Article 6, assigning the Government to provide detailed regulations to specifically determine the time, order and procedures for disclosing information.

Regarding the conditions for organizations and individuals when doing real estate business, the draft Law stipulates that individuals doing real estate business must establish an enterprise or cooperative with real estate business lines; in the case of individuals doing real estate business on a small scale, they do not have to establish a real estate business enterprise but must declare and pay taxes according to the provisions of law.

Enterprises must publicly disclose full, honest and accurate information about real estate before putting it into business, image 2 — Member of the National Assembly Standing Committee, Chairman of the National Assembly Economic Committee Vu Hong Thanh presented the Report on explanation, acceptance and revision of the draft Law.

Regarding the conditions for houses and existing construction works put into business, the National Assembly Standing Committee accepts and adjusts the provisions at Point e, Clause 3, Article 14, accordingly, the sale and lease-purchase of construction floor areas only applies to construction works on land leased by the State in the form of one-time land rent payment for the entire lease term, to ensure consistency of regulations on land users' rights corresponding to land use forms according to the provisions of the law on land.

Regarding the principles of housing business and future construction works, based on the opinions of the Government, National Assembly Deputies at the 5th Session, National Assembly Delegations, National Assembly agencies, the National Assembly Standing Committee proposed 2 options:

Option 1: “Real estate project investors are only allowed to collect deposits from customers when the houses and construction works have met all the conditions for being put into business and have conducted transactions in accordance with the provisions of this Law.”

Option 2: “Real estate project investors are only allowed to collect deposits according to the agreement with customers when the project has a basic design appraised by a state agency and the investor has one of the documents on land use rights specified in Clause 2, Article 24 of this Law. The deposit agreement must clearly state the selling price, lease-purchase price of housing and construction works. The maximum deposit amount is according to Government regulations but does not exceed 10% of the selling price, lease-purchase price of housing and construction works, ensuring compliance with socio-economic development conditions in each period and each type of real estate”.

Enterprises must publicly disclose full, honest and accurate information about real estate before putting it into business, image 3 — Overview of the National Assembly session on the morning of October 31.

Regarding the conditions for housing and construction works formed in the future to be put into business, taking into account the opinions of National Assembly Deputies, the National Assembly Standing Committee has revised the regulations. Accordingly, the business of housing and construction works available in real estate projects must have a Certificate of Land Use Rights for the land area attached to the housing and construction works put into business; the business of housing and construction works formed in the future does not require a Certificate of Land Use Rights but must fulfill financial obligations regarding land for the land area attached to the housing and construction works put into business.

Regarding payment in the purchase, lease-purchase of houses and future construction works, Chairman of the Economic Committee Vu Hong Thanh said that, based on the opinions of the Government, National Assembly Deputies at the 5th Session, National Assembly Delegations, National Assembly agencies, the National Assembly Standing Committee proposed 2 options:

Option 1: “If the buyer or the lessee has not been granted a Certificate of land use rights, house ownership rights and other assets attached to the land, the seller or the lessor shall not collect more than 95% of the contract value; the remaining value of the contract shall be paid when the competent state agency has granted the Certificate of land use rights, house ownership rights and other assets attached to the land to the buyer or lessee.”

Enterprises must publicly disclose full, honest and accurate information about real estate before putting it into business, image 4 — Delegates at the meeting.

Option 2: “If the buyer or lessee has not been granted a Certificate of land use rights, house ownership rights and other assets attached to the land, the seller or lessor may not collect more than 95% of the contract value. The remaining value of the contract shall be transferred by the customer to the investor's account opened at a credit institution for management and the investor may not use this amount; the form of management, costs and profits arising from this amount shall be agreed upon by the investor and the bank.

The investor may only use this amount together with profits (if any) when the competent state agency has issued a Certificate of land use rights, house ownership rights and other assets attached to the land to the buyer or lessee of the house or construction work.

In addition, receiving opinions from National Assembly Deputies, the National Assembly Standing Committee explained and revised a number of contents related to guarantees in the sale and lease-purchase of future housing; on conditions for transferring all or part of a real estate project; on real estate trading floors; on building and managing information systems and data on housing and the real estate market; on regulating the real estate market...

Source