On March 5th, in an interview with a reporter, a leader from the Ministry of Construction stated that the regulation stating that each individual is only allowed to sell 3-5 houses in a year has raised concerns that it would violate the business freedom of individuals.
The Ministry of Construction has listened to and immediately taken into account these concerns and made the adjustment to ensure the business rights of individuals.
As reported on the Ministry of Construction’s website, the latest draft Decree on detailed regulations and instructions for the implementation of certain provisions of the Real Estate Business Law 2023 has been adjusted.
The Ministry of Construction has dropped the proposal to limit individuals from selling 3-5 houses in a year. Photo: Hong Khanh |
Accordingly, Article 7 of the draft decree has removed 3 options to clearly define the “small scale” condition. One of the proposals was to limit individuals engaged in real estate business on a small scale to sell, transfer, lease, or rent-purchase 3-5 houses or 3-5 apartment units within a year.
Specifically, after removing the 3 options, Article 7 of the draft decree states: the condition for individuals engaged in real estate business on a small scale and for organizations, individuals selling houses, constructing buildings, and the floor area in construction works, which are not for business purposes.
1. Individuals engaged in real estate business on a small scale (as stipulated in Clause 3, Article 9 of the Real Estate Business Law No. 29/2023/QH15) are not required to establish real estate business enterprises, conduct transactions in accordance with civil law and notary public law, and must declare and pay taxes as prescribed by law.
2. Organizations, individuals selling houses, constructing buildings, and the floor area in construction works, which are not for business purposes (as stipulated in Clause 4, Article 9 of the Real Estate Business Law No. 29/2023/QH15) are the cases specified in Clause 2, Article 1 of the Real Estate Business Law No. 29/2023/QH15.
Regarding the proposal of the Ministry of Construction, that individuals engaged in real estate business on a small scale may only sell or lease 3-5 houses or apartments within a year, a leader of a real estate company in Hanoi believed that the proposal is not feasible and does not align with reality.
“Real estate transactions are not prohibited by law. Individuals are completely able to buy and sell, to own. Regulating the quantity of 5 houses needs to consider whether it conflicts with other laws, especially the regulations on the ownership rights of individuals,” the leader raised the question.
In addition, the company analyzed that the demand for buying and selling real estate follows supply and demand, and the market operates and individuals buy and sell in accordance with the regulations and laws that are not prohibited.
“When conducting transactions, the regulations will be complied with, including tax payment according to the law. The state manages strictly by ensuring market price control through tax payment. The proposal needs to take into account the feasible options for implementation. Let the market operate as it should,” the company leader said.
According to this company leader, the Ministry of Construction dropping the 3 options and adjusting the regulation in Article 7 of the draft decree as mentioned above is quick and reasonable.
Hong Khanh
