Real Estate Purchases: New Bank Transfer Requirement
As per the Real Estate Business Law 2023, Article 48, any transactions related to real estate projects must now be made through bank transfers. This includes payments made to project owners or developers and is a mandatory requirement from August 1st onwards. The law states: “Payments in real estate transactions shall be made in accordance with the contract between the parties and in compliance with legal regulations.”
From August 1st, real estate purchases from project owners must be made via bank transfer.
The law also stipulates that any penalties or compensation due to delayed payments by the buyer or delays in property handover by the seller must be agreed upon by both parties and stated in the contract. This new regulation ensures better control and oversight of project owners’ and real estate businesses’ transaction funds.
However, small-scale real estate businesses, individuals selling private properties, or those selling/renting out non-commercial properties are exempt from this mandatory bank transfer rule.
Article 47 of the Real Estate Business Law 2023 states that the selling/leasing prices of real estate projects are to be decided by the transacting parties and recorded in the contract. It also emphasizes the importance of accurate price recording, with businesses bearing responsibility for any discrepancies between the recorded and actual transaction prices.
Maximum 50% Down Payment for Off-Plan Properties
A notable change in the law is Article 25, which now limits the down payment for off-plan properties to a maximum of 50%, a decrease from the current 70%. This includes both purchasing and leasing properties that are yet to be constructed. The first payment cannot exceed 30% of the total value, including the deposit. Subsequent payments must align with the construction progress, ensuring that the property is delivered to the buyer as agreed.
The new law reduces the maximum down payment for off-plan properties to 50% from the current 70%.
New regulations leave real estate businesses with no chance to “catch thieves with bare hands”
According to Deputy Minister of Construction Nguyen Van Sinh, the Ministry of Construction is currently drafting documents under the 2023 Housing and Real Estate Business Law. The new regulations in the law ensure the stable and sustainable development of the real estate market.
Upcoming Land Parcels Set for Subdivision Surge
The new real estate business law will not allow the subdivision and sale of land in many localities, and experts say this will cause major changes in the land market.
Upcoming Airport Not to Spark Land Rush in All Districts Near Ho Chi Minh City
Under the provisions of the 2023 Real Estate Business Law taking effect from January 1, 2025, there will be three areas in Ba Ria – Vung Tau that are not allowed to be divided into plots for sale.
