The time of "two-price" real estate transactions is over, payment via bank is required

The 2024 Law on Real Estate Business will take effect from August 1. This law specifically stipulates that the actual transaction price must be recorded in the contract. In addition, real estate transactions must be carried out through a bank account.

Specifically, Article 48 of this law regulates payment in real estate business. Payment in real estate transactions and real estate projects is agreed upon by the parties in the contract and complies with the provisions of law.

Project investors, real estate businesses, and real estate service businesses receive payments under real estate business contracts and real estate service business contracts from customers through accounts opened at domestic credit institutions or foreign bank branches legally operating in Vietnam.

A real estate trading floor in Hanoi (Photo: Tran Khang).

In addition, the penalty and compensation for damages caused by the buyer, transferee, lessee, or hire-purchaser being late in payment or the seller, transferor, lessor, or hire-purchaser being late in handing over the real estate shall be agreed upon by the parties and must be recorded in the contract.

In addition, according to the provisions of Article 47, the selling, transfer, leasing, and hire-purchase prices of real estate must be recorded correctly according to the actual transaction price in the contract. Real estate business organizations and individuals are responsible for recording the correct actual transaction price, avoiding the situation of recording a lower price to reduce personal income tax and registration fees.

Previously, the situation of real estate transactions with the price declared on the contract lower than the actual transfer price (2 prices) was common. The authorities also handled many cases of incorrect declaration of real estate transfer prices to evade taxes.

Source: https://dantri.com.vn/bat-dong-san/het-thoi-mua-ban-nha-dat-2-gia-bat-buoc-thanh-toan-qua-ngan-hang-20240710094633638.htm