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Government implements Real Estate Law rules

Update: September, 23/2015 - 08:04

On September 10, 2015, the Government issued Decree No. 76/2015/ND-CP regulating implementation of Law on Real Estate Business 2014. The Decree governs requirements of real estate business, real estate business contract templates, transfer of contracts and procedures for transfer of partial or entire real estate projects.

Requirements for real estate business individuals and organisations

1. Real estate business individuals and organisations must be established under the law and have legal capital of not less than VND20 billion, except they sell, transfer, lease or lease-purchase real estate on a small scale and infrequently or they provide real estate services.

2. Organisations, households and individuals who sell, transfer, lease or lease-purchase real estate on a small scale and infrequently are not required to establish an enterprise including:

(1) Organisations, households and individuals who sell, transfer, lease or lease-purchase real estate not coming from investment into real estate projects for business purpose; and households and individuals who sell, transfer, lease or lease-purchase of real estate coming from investment into real estate projects for business purpose, but the real estate project has total investment capital of less than VND20 billion (exclusive of land-use fee);

(2) Organisations transferring land-use rights, selling houses and construction works in circumstances of bankruptcy, dissolution or division;

(3) Credit institutions, branches of foreign banks, assets management companies of credit institutions (AMC), Viet Nam assets management company of credit institutions (VAMC), and other organisations and individuals transferring land-use rights, transferring real estate projects, selling houses and construction works that are guaranteed or mortgaged for purpose of debt collection;

(4) Organisations, households and individuals transferring land-use rights, selling houses and construction works under the Court or competent State authority's decisions on disputes, complaints, and claims resolution;

(5) Organisations, households and individuals constructing houses for sale, lease, lease-purchase that are not required to set up enterprises under the housing law;

(6) Organisations are entitled to, under the competent State authority's permission, to transfer land-use rights, sell houses and construction works owned by the State under the laws on public property management; and

(7) Organisations, households, and individuals selling, transferring, leasing or lease-purchasing their own real estate.

Real estate business contracts

1. The parties may refer to the real estate business contract templates attached to the Decree during the negotiation and execution of contracts. The parties may amend articles in the template provided that the contract has sufficient main contents required by law.

2. The templates attached to the Decree include:

(1) Contracts for purchase and sale of houses and construction works existing or to be formed in the future;

(2) Contracts for lease of houses and construction works existing or to be formed in the future;

(3) Contracts for lease-purchase of houses and construction works existing or to be formed in the future;

(4) Contracts for transferring, leasing, subleasing of land-use rights;

(5) Contract for transfer of partial or entire real estate project.

Transfer of contracts for purchase and sale and lease-purchase of houses to be formed in the future

1. Purchasers or lease-purchasers who have not received the houses or have received the houses are entitled to transfer the contracts for purchase and sale or lease-purchase of houses to be formed in the future to other organisations and individuals once the request of issuance of certificate for land-use rights and house or other land-fixed assets ownership ("Certificate") has not been submitted to the competent State authority.

2. Organisations and individuals who receive the transfer of contracts are entitled to transfer consecutively the contracts for purchase and sale and lease-purchase of houses to be formed in the future to other organisations and individuals once the request of issuance of Certificate has not been submitted to the competent State authority.

3. The last transferee of the contract for lease-purchase of a house to be formed in the future is issued by the competent State authority with the Certificate.

4. Contract for lease-purchase of house to be formed in the future signed with the first lease-purchaser, and the last contract for transfer certified by the lease-purchaser must be submitted when requesting issuance of Certificate

The Decree takes effect on November 1, 2015, and replaces Government Decree No. 153/2007/ND-CP (October 15, 2007).

MAI COUNSEL

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