Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Law on Real Estate Business.

Chapter I GENERAL PROVISIONS

Article 1. Scope of regulation

This Law prescribes real estate business activities, rights and obligations of organizations and individuals conducting real estate business, and state management of real estate business.

Article 2. Regulated entities

1. Organizations and individuals conducting real estate business in Vietnam.

2. Agencies, organizations and individuals involved in real estate business in Vietnam.

Article 3. Interpretation of terms

In this Law, the terms below shall be construed as follows:

1. Real estate business means investing capital to perform activities of construction, purchase, receipt of transfer to sell, transfer; lease, re-lease, lease-purchase of real estate; provision of real estate brokerage services; real estate trading floor services; real estate consultancy services or real estate management for profit-making purposes.

2. Real estate brokerage means acting as an intermediary for parties in the sale, transfer, lease, re-lease, lease-purchase of real estate.

3. Existing houses and construction works means houses and construction works which have been completely constructed and put into use.

4. Future houses and construction works means houses and construction works which are under construction and have not been accepted for being put into use.

5. Real estate management means performing one, some or all of the activities of management, exploitation and disposition of real estate as authorized by owners of houses or construction works, or land users.

6. Real estate trading floor means a place where transactions of sale, transfer, lease, re-lease, lease-purchase of real estate take place.

7. Lease-purchase of houses or construction works means an agreement between parties, whereby the lessee pays the lessor an advance and is entitled to use such houses or construction works; the remaining amount shall be considered as rent; after the full payment of the lease-purchase amount, the lessee shall become the owner of such houses or construction works.

8. Real estate consultancy means activities to assist in issues related to real estate business at the request of parties.

Article 4. Principles of real estate business

1. Equality before law; freedom to reach agreements on the basis of respecting lawful rights and interests of parties through contracts, in consistence with legal provisions.

2. Real estate to be traded must satisfy all conditions prescribed by this Law.

3. Real estate business must be conducted in an honest, public and transparent manner.

4. Organizations and individuals are entitled to conduct real estate business activities in areas outside the scope of national defense and security protection in accordance with the planning and land use plans approved by competent state agencies.

Article 5. Types of real estate to be traded

Types of real estate to be traded under this Law (hereinafter referred to as real estate) include:

1. Existing houses and construction works of organizations and individuals;

2. Future houses and construction works of organizations and individuals;

3. State-owned houses and construction works permitted by competent state agencies to be traded;

4. Land lots of which the use rights are permitted to be transferred, leased or sub-leased in accordance with the land law.

Article 6. Disclosure of information on real estate to be traded

1. Real estate trading enterprises shall disclose information on real estate in the following forms:

a) On their websites;

b) At the head offices of project management units, for real estate investment projects;

c) At real estate trading floors, in case of trading through real estate trading floors.

2. Information to be disclosed on real estate includes:

a) Type of real estate;

b) Location of real estate;

c) Planning information related to the real estate;

d) Scale of the real estate;

dd) Characteristics, nature, utilities and quality of the real estate; information on each type of use purpose and common use area, for multi-purpose mixed-use buildings and apartment buildings;

e) Status of technical infrastructure works and services related to the real estate;

g) Dossiers and documents on ownership of houses and construction works, land use rights and documents related to the investment and construction of the real estate; contracts on guarantee, documents permitting the sale or lease-purchase by competent state agencies, for sale or lease-purchase of future houses;

h) Restrictions on ownership rights and use rights to the real estate (if any);

i) Selling, transfer, lease, re-lease, lease-purchase prices of the real estate.

Article 7. State policies on real estate business investment

1. The State encourages organizations and individuals of all economic sectors to invest in real estate business in accordance with the national socio-economic development objectives in each period and each locality.

2. The State encourages and adopt policies on tax exemption and reduction, exemption and reduction of land use fee and land rental, and credit incentives for organizations and individuals investing in the construction of social housing and projects eligible for investment incentives.

3. The State shall invest in and encourage organizations and individuals to invest in the construction of technical infrastructure facilities outside the fences of projects; and support the investment in the construction of technical infrastructure facilities within the fences of projects eligible for investment incentives.

4. The State shall invest in and encourage organizations and individuals to invest in urban public utility projects and social infrastructure works within the scope of real estate business investment projects.

5. The State shall adopt mechanisms and policies to stabilize the real estate market when fluctuations occur, in order to ensure benefits of investors and customers.

Article 8. Prohibited acts

1. Conducting real estate business without satisfying all prescribed conditions in this Law.

2. Deciding on the investment in real estate projects inconsistently with the planning and plans approved by competent state agencies.

3. Failing to disclose or disclosing inadequate or untruthful information on real estate.

4. Committing fraudulence or deception in real estate business.

5. Illegally mobilizing or appropriating capital; using the capital mobilized from organizations and individuals and advance money of real estate buyers, lessees or lessees-purchasers for improper purposes, contrary to commitments.

6. Failing to perform or fully perform financial obligations toward the State.

7. Granting and using real estate brokerage practice certificates not in accordance with this Law.

8. Collecting fees, charges and other amounts related to real estate business in contravention of law.

Chapter II BUSINESS OF EXISTING REAL ESTATE

Section 1. GENERAL PROVISIONS

Article 9. Conditions for real estate to be traded

1. Houses and construction works to be traded must fully satisfy the following conditions:

a) Ownership of houses or construction works attached to land is registered in the land use right certificate. For existing houses and construction works in real estate business investment projects, only the land use right certificate prescribed by the land law is required;

b) There are no disputes over the land use rights or ownership of houses or construction works attached to land;

c) They are not distrained to secure judgment enforcement.

2. Land lots of which the use rights are permitted to be traded must fully satisfy the following conditions:

a) There are land use right certificates in accordance with the land law;

b) There are no disputes over the land use rights;

c) The land use rights are not distrained to secure judgment enforcement;

d) They are still within the land use term.

Article 10. Conditions for organizations and individuals conducting real estate business

1. Organizations and individuals conducting real estate business must establish enterprises or cooperatives (collectively referred to as enterprises) and have a charter capital of at least VND 20 billion, except the case specified in Clause 2 of this Article.

2. Organizations, households and individuals selling, transferring, leasing or leasing-purchasing real estate on a small or irregular scale are not required to establish enterprises but shall declare and pay tax in accordance with law.

3. The Government shall detail this Article.

Article 11. Scope of real estate business of domestic organizations and individuals, overseas Vietnamese, and foreign-invested enterprises

1. Domestic organizations and individuals may conduct real estate business in the following forms:

a) Purchasing houses and construction works for sale, lease or lease-purchase;

b) Leasing houses and construction works for sub-lease;

c) For land allocated by the State, investing in the construction of houses for sale, lease or lease-purchase; transferring land use rights in the form of division of land parcels or sale of land lots in accordance with the land law; investing in the construction of cemetery and graveyard technical infrastructure for transferring the use rights to land attached with such infrastructure;

d) For land leased by the State, investing in the construction of houses for lease; investing in the construction of houses and construction works other than houses for sale, lease or lease-purchase;

dd) For land of which the use rights are recognized by the State, investing in the construction of houses and construction works for sale, lease or lease-purchase;

e) For land of which the use rights are transferred from organizations, households or individuals, investing in the construction of houses and construction works for sale, lease or lease-purchase;

g) For land leased from organizations, households or individuals, investing in the construction of houses and construction works for lease according to the land use purpose;

h) Receiving the transfer of the whole or part of real estate projects from investors for construction of houses and construction works for sale, lease or lease-purchase;

i) Receiving the transfer of or leasing land use rights from organizations, households or individuals for investment in technical infrastructure construction for transfer or lease of land with such technical infrastructure.

2. Overseas Vietnamese may conduct real estate business in the following forms:

a) The forms specified at Points b, d, g and h, Clause 1 of this Article;

b) For land allocated by the State, investing in the construction of houses for sale, lease or lease-purchase;

c) For land leased or received in transfer in industrial parks, industrial clusters, export processing zones, hi-tech parks or economic zones, investing in the construction of houses and construction works for trading according to the land use purpose.

3. Foreign-invested enterprises may conduct real estate business in the following forms:

a) The forms specified at Points b, d and h, Clause 1, and Point b, Clause 2 of this Article;

b) For land leased in industrial parks, industrial clusters, export processing zones, hi-tech parks or economic zones, investing in the construction of houses and construction works for trading according to the land use purpose.

Article 12. Requirements on real estate investment projects for business purposes

1. Real estate investment projects for business purposes must conform with the land use planning and plans, urban planning, rural construction planning, and shall be implemented according to the plans approved by competent state agencies.

2. The order and procedures for investing in real estate projects for business purposes must comply with the laws on investment, land, construction, housing, urban development and other relevant laws.

3. Real estate investment projects must be constructed on schedule and satisfy the quality requirements in accordance with the construction law.

Article 13. Responsibilities of investors of real estate business projects

1. To carry out the investment, construction, business, management and exploitation of real estate projects in accordance with law.

2. To ensure financial sources for project implementation on schedule as approved.

3. To hand over houses and construction works to customers only after completing the construction of houses, construction works, technical infrastructure and social infrastructure works on schedule stated in approved projects, ensuring their connection to the common infrastructure system in the area; in case of handing over unfinished houses or construction works, the entire exterior of such houses or construction works must be completed.

4. Within 50 days after handing over houses or construction works to buyers, or after the expiration of the lease-purchase term, carrying out procedures for competent state agencies to grant certificates of land use rights and ownership of houses and other land-attached assets to buyers or lessees-purchasers, except when buyers or lessees-purchasers make a written request to carry out the procedures themselves.

5. Not to authorize parties participating in joint investment, joint venture, association, business cooperation or capital contribution to sign contracts on sale, transfer or lease-purchase of real estate.

Article 14. Entities eligible to purchase, receive transfer, lease, lease-purchase real estate from real estate trading enterprises

1. Domestic organizations and individuals may purchase, receive transfer, lease, lease-purchase all types of real estate.

2. Overseas Vietnamese, foreign organizations and individuals may lease real estate for use; and may purchase, lease, lease-purchase houses in accordance with the housing law.

Overseas Vietnamese and foreign-invested enterprises may purchase, lease-purchase houses and construction works for use as working offices, production, business and service establishments according to the use functions of such houses and construction works.

3. Overseas Vietnamese and foreign-invested enterprises conducting real estate business may purchase, receive transfer, lease, lease-purchase real estate for business purposes in accordance with Article 11 of this Law.

Article 15. Prices of sale, transfer, lease, lease-purchase of real estate

The prices of sale, transfer, lease, lease-purchase of real estate shall be agreed upon by the parties and clearly stated in contracts. If the State has regulations on prices, the parties shall comply with such regulations.

Article 16. Payment in real estate transactions

1. Payment in real estate transactions shall be agreed upon by the parties in contracts and must comply with the law on payment.

2. Fines and compensation for damage caused by the buyer, transferee, lessee or lessee-purchaser making late payment or the seller, transferor, lessor or lessor-purchaser making late delivery of real estate shall be agreed upon by the parties and clearly stated in contracts.

Article 17. Real estate business contracts

1. Types of real estate business contracts:

a) Contracts for sale and purchase of houses or construction works;

b) Contracts for lease of houses or construction works;

c) Contracts for lease-purchase of houses or construction works;

d) Contracts for transfer, lease or sub-lease of land use rights;

dd) Contracts for transfer of part or the whole of real estate projects.

2. Real estate business contracts must be made in writing. The notarization or authentication of contracts shall be agreed upon by the parties, except contracts for sale and purchase or lease-purchase of houses or construction works, and contracts for transfer of land use rights, in which parties are households or individuals specified in Clause 2, Article 10 of this Law, which must be notarized or authenticated.

3. The effective time of a contract shall be agreed upon by the parties and stated in the contract. For notarized or authenticated contracts, the effective time is the time of notarization or authentication. If the parties reach no agreement or have no contract notarized or authenticated, the effective time is the signing time.

4. The Government shall provide for model real estate business contracts.

Article 18. Contents of contracts for sale and purchase, lease, lease-purchase of houses or construction works

A contract for sale and purchase, lease or lease-purchase of a house or construction work must contain the following principal contents:

1. Names and addresses of the parties;

2. Information on the real estate;

3. Selling, lease or lease-purchase price;

4. Mode and time limit of payment;

5. Time limit for handover of the real estate and accompanying dossier;

6. Warranty;

7. Rights and obligations of the parties;

8. Liabilities for breaches of contract;

9. Fines for violations of the contract;

10. Cases of suspension, cancellation of the contract and handling measures;

11. Settlement of disputes;

12. Effective time of the contract.

Section 2. SALE AND PURCHASE OF HOUSES OR CONSTRUCTION WORKS

Article 19. Principles of sale and purchase of houses or construction works

1. The sale and purchase of a house or construction work must be associated with the land use right.

2. The sale and purchase of an apartment building or a multi-purpose mixed-use building must adhere to the following principles:

a) Clear division of common and private use areas and equipment of owners;

b) After purchasing apartments or areas in the apartment building or multi-purpose mixed-use building, the owners’ land use rights are common use rights and must be unified according to a stable long-term use form or lease form; if the land use right is a lease right, the land lease term must be unified.

3. Buyers of houses, construction works, apartments or areas in apartment buildings or multi-purpose mixed-use buildings will be granted certificates of land use rights and ownership of houses and other land-attached assets by the State.

4. The sale and purchase of a house or construction work must be accompanied by a dossier of such house or construction work.

5. The time of transfer of ownership of a house or construction work is the time the seller hands over such house or construction work to the buyer or the buyer has fully paid the seller, unless otherwise agreed by the parties.

Article 20. Warranty of sold houses or construction works

1. The seller shall provide warranty for sold houses or construction works to the buyer. If a house or construction work is still under warranty, the seller may request the building contractor or equipment supplier to perform the warranty in accordance with the construction law.

2. The warranty duration for houses or construction works must comply with the laws on construction and housing; after the expiry of the warranty duration, it shall be agreed upon by the parties.

Article 21. Rights of the seller of a house or construction work

1. To request the buyer to receive the house or construction work on schedule as agreed upon in the contract.

2. To request the buyer to make full payment according to the time limit and mode agreed upon in the contract; in case of no agreement, to collect from the buyer an amount not exceeding 95% of the contract value when the buyer has not been granted a certificate of land use rights and ownership of houses and other land-attached assets.

3. To request the buyer to coordinate in carrying out sale and purchase procedures within the time limit agreed upon in the contract.

4. Not to hand over the house or construction work when not yet receiving sufficient payment, unless otherwise agreed by the parties.

5. To request the buyer to pay compensation for damage caused by the latter’s fault.

6. Other rights stated in the contract.

Article 22. Obligations of the seller of a house or construction work

1. To notify the buyer of restrictions on ownership of the house or construction work (if any).

2. To preserve the sold house or construction work pending its handover to the buyer.

3. To carry out procedures for sale and purchase of the house or construction work in accordance with law.

4. To hand over the house or construction work to the buyer with the proper quality, according to schedule and other conditions agreed upon in the contract; to hand over the certificate of land use rights and ownership of houses and other land-attached assets and relevant dossiers as agreed upon in the contract.

5. To provide warranty for the sold house or construction work in accordance with Article 20 of this Law.

6. To pay compensation for damage caused by their fault.

7. To fulfill financial obligations to the State in accordance with law.

8. Other obligations stated in the contract.

Article 23. Rights of the buyer of a house or construction work

1. To request the seller to complete procedures for sale and purchase of the house or construction work within the time limit agreed upon in the contract.

2. To request the seller to hand over the house or construction work with the proper quality, according to schedule and other conditions agreed upon in the contract; to hand over the certificate of land use rights and ownership of houses and other land-attached assets and relevant dossiers as agreed upon in the contract.

3. To request the seller to provide warranty for the house or construction work in accordance with Article 20 of this Law.

4. To request the seller to pay compensation for damage caused by the handover of the house or construction work behind schedule or not up to the agreed quality and other commitments in the contract.

5. Other rights stated in the contract.

Article 24. Obligations of the buyer of a house or construction work

1. To make full payment for the house or construction work purchase according to the time limit and mode agreed in the contract.

2. To receive the house or construction work together with the certificate of land use rights and ownership of houses and other land-attached assets and relevant dossiers according to the schedule agreed upon in the contract.

3. To coordinate with the seller in carrying out sale and purchase procedures within the time limit agreed upon in the contract.

4. In case of purchasing a leased house or construction work, to guarantee the rights and interests of the lessee according to the lease contract when the lease term is still valid.

5. To pay compensation for damage caused by their fault.

6. Other obligations stated in the contract.

Section 3. LEASE OF HOUSES OR CONSTRUCTION WORKS

Article 25. Principles of lease of houses or construction works

Leased houses or construction works must guarantee quality, safety, environmental sanitation and other necessary services for their normal operation and use according to their functions, designs and agreements in contracts.

Article 26. Rights of the lessor of a house or construction work

1. To request the lessee to receive the house or construction work on schedule as agreed upon in the contract.

2. To request the lessee to make full payment according to the time limit and mode agreed upon in the contract.

3. To request the lessee to preserve and use the house or construction work as agreed upon in the contract.

4. To request the lessee to pay compensation for damage or repair the damaged part caused by the latter’s fault.

5. To renovate or upgrade the leased house or construction work with the lessee’s consent, provided that such renovation or upgrading does not affect the lessee.

6. To unilaterally terminate the contract performance in accordance with Clause 1, Article 30 of this Law.

7. To request the lessee to return the house or construction work upon the expiry of the lease term; in case the contract does not prescribe a lease term, the house or construction work may only be taken back after a 06-month prior notice is sent to the lessee.

8. Other rights stated in the contract.

Article 27. Obligations of the lessor of a house or construction work

1. To hand over the house or construction work to the lessee as agreed upon in the contract and guide the lessee to use it for the proper utilities and design.

2. To ensure that the lessee can stably use the house or construction work during the lease term.

3. To maintain and repair the house or construction work periodically or as agreed upon; if the lessor fails to maintain and repair the house or construction work, thus causing damage to the lessee, the lessor shall pay compensation.

4. Not to unilaterally terminate the contract when the lessee performs the contract obligations, except when the lessee agrees to the termination of the contract.

5. To pay compensation for damage caused by their fault.

6. To fulfill financial obligations to the State in accordance with law.

7. Other obligations stated in the contract.

Article 28. Rights of the lessee of a house or construction work

1. To request the lessor to hand over the house or construction work as agreed upon in the contract.

2. To request the lessor to provide complete and truthful information on the house or construction work.

3. To exchange the leased house or construction work with another lessee with the lessor’s written consent.

4. To sub-lease part or the whole of the leased house or construction work if so agreed upon in the contract or obtaining the lessor’s written consent.

5. To continue the lease under the conditions agreed with the lessor in case of change of owner.

6. To request the lessor to repair the house or construction work if it is damaged not due to the lessee’s fault.

7. To request the lessor to pay compensation for damage caused by the latter’s fault.

8. To unilaterally terminate the contract performance in accordance with Clause 2, Article 30 of this Law.

9. Other rights stated in the contract.

Article 29. Obligations of the lessee of a house or construction work

1. To preserve and use the house or construction work for the proper utilities and design and as agreed upon in the contract.

2. To fully pay the rent according to the time limit and mode agreed upon in the contract.

3. To repair the damage to the house or construction work caused by their fault.

4. To return the house or construction work to the lessor in accordance with the contract.

5. Not to change, renovate or demolish the house or construction work without the lessor’s consent.

6. To pay compensation for damage caused by their fault.

7. Other obligations stated in the contract.

Article 30. Unilateral termination of a house or construction work lease contract

1. The lessor may unilaterally terminate the performance of a house or construction work lease contract when the lessee commits one of the following acts:

a) Failing to pay the rent for 03 or more months after the payment deadline stated in the contract without the lessor’s consent;

b) Using the house or construction work not for the lease purpose;

c) Intentionally causing serious damage to the leased house or construction work;

d) Repairing, renovating, upgrading, exchanging or sub-leasing the leased house or construction work without an agreement in the contract or the lessor’s written consent.

2. The lessee may unilaterally terminate the performance of a house or construction work lease contract when the lessor commits one of the following acts:

a) Failing to repair the house or construction work when it is unsafe for use or causes damage to the lessee;

b) Unreasonably raising the rent;

c) Restricting the right to use the house or construction work due to the interest of a third party.

3. The party that unilaterally terminates the performance of a house or construction work lease contract shall send a 01-month prior notice to the other party, unless otherwise agreed upon.

Section 4. LEASE-PURCHASE OF HOUSES OR CONSTRUCTION WORKS

Article 31. Principles of lease-purchase of houses or construction works

1. Lease-purchased houses or construction works must guarantee quality, safety, environmental sanitation and other necessary services for their normal operation and use according to their functions, designs and agreements in contracts.

2. The lease-purchase of a house or construction work must be associated with the land use right.

3. The parties to a house or construction work lease-purchase contract may agree to shorten the lease-purchase duration before the expiry of the lease-purchase term stated in the signed contract.

Article 32. Rights of the lessor-purchaser of a house or construction work

1. To request the lessee-purchaser to receive the house or construction work on schedule as agreed upon in the contract.

2. To request the lessee-purchaser to pay the lease-purchase money according to the time limit and mode agreed upon in the contract.

3. To request the lessee-purchaser to coordinate in carrying out lease-purchase procedures within the time limit agreed upon in the contract.

4. To request the lessee-purchaser to pay compensation for damage caused by the latter’s fault.

5. To reserve the ownership of the house or construction work when the lessee-purchaser has not yet fully paid the lease-purchase money.

6. To request the lessee-purchaser to preserve and use the house or construction work during the lease-purchase term as agreed upon in the contract.

7. Other rights stated in the contract.

Article 33. Obligations of the lessor-purchaser of a house or construction work

1. To notify the lessee-purchaser of restrictions on ownership of the house or construction work (if any).

2. To carry out procedures for lease-purchase of the house or construction work in accordance with law.

3. To preserve the lease-purchased house or construction work during the period of not yet handing over such house or work to the lessee-purchaser. To maintain and repair the house or construction work periodically or as agreed upon in the contract.

4. To hand over the house or construction work and related dossiers to the lessee-purchaser with the proper progress, quality and other conditions agreed upon in the contract.

5. To carry out procedures for requesting the grant of a certificate of land use rights and ownership of houses and other land-attached assets and hand such certificate to the lessee-purchaser upon the expiry of the lease-purchase term, unless the lessee-purchaser makes a written request to carry out the procedures to obtain such certificate by themselves.

6. To provide warranty for the house or construction work in accordance with Article 20 of this Law.

7. To pay compensation for damage caused by their fault.

8. To fulfill financial obligations to the State in accordance with law.

9. To create conditions for the lessee-purchaser to transfer the house or construction work lease-purchase contract.

10. Other obligations stated in the contract.

Article 34. Rights of the lessee-purchaser of a house or construction work

1. To request the lessor-purchaser to provide complete and truthful information on the house or construction work.

2. To request the lessor-purchaser to hand over the house or construction work and related dossiers as agreed upon in the contract; to carry out procedures for requesting the grant of a certificate of land use rights and ownership of houses and other land-attached assets upon the expiry of the lease-purchase term.

3. To sub-lease part or the whole of the house or construction work; to transfer the house or construction work lease-purchase contract.

4. To request the lessor-purchaser to repair damage to the house or construction work during the lease-purchase term which is not caused by the lessee-purchaser’s fault.

5. To request the lessor-purchaser to pay compensation for damage caused by the latter’s fault.

6. To own the house or construction work from the time of full payment of the lease-purchase money to the lessor-purchaser.

7. Other rights stated in the contract.

Article 35. Obligations of the lessee-purchaser of a house or construction work

1. To preserve and use the house or construction work for proper purposes as agreed upon in the contract.

2. To pay the lease-purchase money according to the time limit and mode agreed upon in the contract.

3. To coordinate with the lessor-purchaser in carrying out lease-purchase procedures within the time limit agreed upon in the contract.

4. Not to change, renovate or demolish the house or construction work without the lessor-purchaser’s consent.

5. To repair damage to the house or construction work caused by their fault during the lease-purchase term.

6. To pay compensation for damage caused by their fault.

7. To notify the lessor-purchaser of the sub-lease of part or the whole of the house or construction work; of the transfer of the house or construction work lease-purchase contract.

8. Other obligations stated in the contract.

Article 36. Transfer of a house or construction work lease-purchase contract

1. The lessee-purchaser may transfer the house or construction work lease-purchase contract when the dossier of request for grant of a certificate of land use rights and ownership of houses and other land-attached assets to the lessee-purchaser has not yet been submitted to a competent state agency. The transfer of a house or construction work lease-purchase contract must be made in writing, bearing the lessor-purchaser’s certification in the transfer document.

2. The transferee of a lease-purchase contract shall continue to exercise the rights and perform the obligations of the lessee-purchaser of the house or construction work toward the lessor-purchaser. The lessor-purchaser shall create conditions for the parties to transfer the contract and may not collect any charge related to the contract transfer.

3. The final transferee of the house or construction work lease-purchase contract will be granted a certificate of land use rights and ownership of houses and other land-attached assets by a competent state agency in accordance with the land law.

4. The transfer of contracts specified in this Article does not apply to social housing lease-purchase contracts.

5. The Government shall detail this Article.

Section 5. TRANSFER, LEASE AND SUB-LEASE OF LAND USE RIGHTS

Article 37. Principles of transfer, lease and sub-lease of land use rights

1. The transfer, lease and sub-lease of land use rights must satisfy the conditions prescribed in Clause 2, Article 9 of this Law.

2. The transfer, lease and sub-lease of land use rights must comply with the land law’s provisions on land use purposes, land use terms and land registration.

Article 38. Rights of the land use right transferor

1. To request the land use right transferee to pay money according to the time limit and mode agreed upon in the contract.

2. To request the land use right transferee to receive the land on schedule as agreed upon in the contract.

3. To request the land use right transferee to pay compensation for damage caused by the latter’s fault.

4. Not to hand over the land when not yet receiving sufficient payment, unless otherwise agreed by the parties.

5. Other rights stated in the contract.

Article 39. Obligations of the land use right transferor

1. To provide complete and truthful information on the land use right and take responsibility for such information.

2. To hand over the land to the land use right transferee with the full area, correct location and status as agreed upon in the contract.

3. To carry out the land registration in accordance with the land law and hand over the certificate of land use rights and ownership of houses and other land-attached assets to the transferee, unless the transferee makes a written request to carry out the procedures to obtain such certificate by themselves.

4. To pay compensation for damage caused by their fault.

5. To fulfill financial obligations to the State in accordance with law.

6. Other obligations stated in the contract.

Article 40. Rights of the land use right transferee

1. To request the transferor to provide complete and truthful information on the transferred land use right.

2. To request the transferor to carry out procedures and hand over the certificate of land use rights and ownership of houses and other land-attached assets.

3. To request the transferor to hand over the land with the full area, correct location and status as agreed upon in the contract.

4. To request the transferor to pay compensation for damage caused by the latter’s fault.

5. To use the land from the time of receiving the land handover from the transferor.

6. Other rights stated in the contract.

Article 41. Obligations of the land use right transferee

1. To pay money to the land use right transferor according to the time limit and mode agreed upon in the contract.

2. To guarantee the rights of third parties to the transferred land.

3. To pay compensation for damage caused by their fault.

4. To fulfill financial obligations to the State in accordance with law.

5. Other obligations stated in the contract.

Article 42. Rights of the land use right lessor

1. To request the lessee to exploit and use the land for the proper purposes and in accordance with the land use planning, land use plans, investment projects and agreements in the contract.

2. To request the lessee to pay the rent according to the time limit and mode agreed upon in the contract.

3. To request the lessee to immediately stop the improper use of land, destruction of land or reduction of the land use value; if the lessee fails to immediately stop the violation, the lessor may unilaterally terminate the contract performance, request the lessee to return the leased land and pay compensation for damage.

4. To request the lessee to return the land upon the expiry of the lease term according to the contract.

5. To request the lessee to pay compensation for damage caused by the latter’s fault.

6. Other rights stated in the contract.

Article 43. Obligations of the land use right lessor

1. To provide complete and truthful information on the land use right and take responsibility for such information.

2. To hand over the land to the lessee with the full area, correct location and status as agreed upon in the contract.

3. To register the land use right lease.

4. To inspect and remind the lessee to protect and preserve land and use land for proper purposes.

5. To fulfill financial obligations to the State in accordance with law.

6. To notify the lessee of the rights of third parties to the leased land.

7. To pay compensation for damage caused by their fault.

8. Other obligations stated in the contract.

Article 44. Rights of the land use right lessee

1. To request the lessor to provide complete and truthful information on the leased land use right.

2. To request the lessor to hand over the land with the proper area, location and status as agreed upon in the contract.

3. To use the leased land within the lease term stated in the contract.

4. To exploit and use the leased land and enjoy the fruits of labor and investment results on the leased land.

5. To request the lessor to pay compensation for damage caused by the latter’s fault.

6. Other rights stated in the contract.

Article 45. Obligations of the land use right lessee

1. To use the land for the proper purposes, within the proper boundary and lease term.

2. Not to destroy land.

3. To fully pay the land use right rent according to the time limit and mode agreed upon in the contract.

4. To comply with environmental protection regulations; not to infringe upon the lawful rights and interests of surrounding land users.

5. To return the land on schedule and in the conditions agreed upon in the contract.

6. To pay compensation for damage caused by their fault.

7. Other obligations stated in the contract.

Article 46. Rights and obligations of parties to a land use right sub-lease

The rights and obligations of land use right sub-lessors and sub-lessees shall be exercised in accordance with Articles 42, 43, 44 and 45 of this Law.

Article 47. Contents of land use right transfer, lease, sub-lease contracts

A contract for transfer, lease or sub-lease of land use rights must contain the following principal contents:

1. Names and addresses of the parties;

2. Information on the type, area, location, number, boundary and status of the land lot and land-attached assets (if any);

3. Land use term;

4. Transfer, lease or sub-lease price, including the price of land-attached assets (if any);

5. Mode and time limit of payment;

6. Time limit for land handover and the accompanying dossier;

7. Rights and obligations of the parties;

8. Rights of third parties to the land lot (if any);

9. Liabilities for breaches of contract;

10. Fines for violations of the contract;

11. Settlement of consequences upon the expiry of the contract for lease or sub-lease of land use rights;

12. Settlement of disputes;

13. Cases of suspension, cancellation of the contract and handling measures.

Section 6. TRANSFER OF THE WHOLE OR PART OF REAL ESTATE PROJECTS

Article 48. Principles of transfer of the whole or part of real estate projects

1. Investors of real estate projects may transfer the whole or part of their projects to other investors for continued investment and business purposes.

2. The transfer of the whole or part of a real estate project must meet the following requirements:

a) Not changing the project’s objectives;

b) Not changing the project’s contents;

c) Guaranteeing the interests of customers and related parties.

3. The transfer of the whole or part of a real estate project must be approved in writing by the competent state agency that decides on the project investment. The transferee investor shall be granted a certificate of land use rights and ownership of houses and other land-attached assets or have any change registered in the certificate granted to the transferor investor in accordance with the land law.

4. The transferee investor of the whole or part of a real estate project is not required to re-prepare the project dossier, construction planning and construction permit if there is no change in the contents of approval of the investment policy and investment decision of the project.

Article 49. Conditions for transfer of the whole or part of real estate projects

1. Real estate projects to be transferred must satisfy the following conditions:

a) The project has been approved by a competent state agency, has a 1/500 detailed plan or an approved general ground plan;

b) Compensation and ground clearance for the whole or part of the project to be transferred have been completed. For transfer of the whole of a project on construction of infrastructure, corresponding technical infrastructure works must have been completely constructed according to the schedule stated in the approved project;

c) There is no dispute over the land use right; the project is not distrained to secure judgment enforcement or administrative decision enforcement by a competent state agency;

d) There is no decision on project recovery or land recovery of a competent state agency; in case of violations in the project implementation, the investor must have complied with the sanctioning decision.

2. The transferor investor has been granted a certificate of land use rights for the whole or part of the project to be transferred.

3. The transferee investor of the whole or part of a real estate project must be a real estate trading enterprise having sufficient financial capacity and commit to continue the investment, construction and trading in accordance with law and guarantee the project schedule and contents.

Article 50. Competence to permit the transfer of the whole or part of real estate projects

1. Provincial-level People’s Committees shall decide to permit the transfer of the whole or part of real estate projects for projects of which the investment is decided by provincial-level People’s Committees.

2. The Prime Minister shall decide to permit the transfer of the whole or part of real estate projects for projects of which the investment is decided by the Prime Minister.

Article 51. Procedures for transfer of the whole or part of real estate projects

1. An investor shall send a dossier of request for transfer of the whole or part of a project to the People’s Committee of the province where such project is located or the agency authorized by the provincial-level People’s Committee.

2. Within 30 days after receiving a complete and valid dossier, the provincial-level People’s Committee shall issue a decision permitting the transfer, or notify the investor in writing in case the conditions for such permission are not fully met.

For projects of which investment is decided by the Prime Minister, within 45 days after receiving a complete and valid dossier, the provincial-level People’s Committee shall consult the specialized management ministry and the Ministry of Construction in order to report such to the Prime Minister for decision.

3. Within 30 days after the competent state agency issues a decision permitting the project transfer, the parties shall sign the transfer contract and complete the project handover.

In case the transferee investor of a real estate project is a foreign-invested enterprise, after the competent state agency issues a decision permitting the project transfer, the transferor investor shall carry out procedures to return the land to the State; the competent state agency shall decide on land allocation or land lease to the transferee investor within 30 days after receiving a complete and valid dossier.

4. The Government shall detail this Article.

Article 52. Rights and obligations of parties to the transfer of the whole or part of real estate projects

1. The transferor investor of the whole or part of a real estate project has the following rights and obligations:

a) To transfer its rights and obligations toward the whole or part of the project to the transferee investor for continued investment in construction of real estate for business, except the rights and obligations which have been fulfilled without relation to the transferee investor and the continued project or sub-project implementation;

b) To transfer related dossiers to the transferee; to promptly, fully and publicly notify and satisfactorily settle the lawful rights and interests of customers and parties related to the project or sub-project to be transferred;

c) To coordinate with the transferee in carrying out procedures for transfer of the land use right to the transferee in accordance with the land law;

d) In case of transfer of part of a real estate project, to request the transferee to continue investing in the construction of houses and construction works in the transferred part according to schedule and the approved 1/500 detailed plan or general ground plan of the project; to monitor and promptly notify competent state agencies of the transferee’s violations in land use and construction investment;

dd) To fulfill financial obligations to the State in accordance with law;

e) Other rights and obligations stated in the contract.

2. The transferee investor of the whole or part of a real estate project has the following rights and obligations:

a) To inherit and exercise the rights and perform the obligations transferred by the transferor investor;

b) To continue the project investment, construction and trading on schedule and according to approved contents;

c) In case of receiving the transfer of part of a real estate project, to comply with the transferor investor’s requests on assurance of the project schedule and observance of the project planning in the course of construction investment;

d) To fulfill financial obligations to the State in accordance with law;

dd) Other rights and obligations stated in the contract.

Article 53. Contents of contracts on transfer of the whole or part of real estate projects

A contract on transfer of the whole or part of a real estate project must contain the following principal contents:

1. Names and addresses of the parties;

2. Basic information on the approved project;

3. Detailed information on the whole or part of the project to be transferred;

4. Transfer price;

5. Mode and time limit of payment;

6. Time limit for handover of the whole or part of the project and the accompanying dossier;

7. Rights and obligations of the parties;

8. Responsibilities of the parties in carrying out administrative procedures related to the land use right;

9. Liabilities for breaches of contract;

10. Fines for violations of the contract;

11. Settlement of disputes;

12. Cases of suspension of contract performance and handling measures;

13. Effective date of the contract.

Chapter III TRADING IN FUTURE REAL ESTATE

Article 54. Right to trade in future real estate

1. Investors of real estate projects may sell, lease or lease-purchase future houses or construction works.

2. The sale, lease or lease-purchase of future houses or construction works shall comply with this Chapter, corresponding provisions in Chapter II and other relevant provisions of this Law.

Article 55. Conditions for trading in future real estate

1. There are papers on land use rights, project dossier, construction drawing designs approved by competent agencies, construction permit for cases requiring a construction permit, papers on acceptance of completion of construction of corresponding technical infrastructure according to the project schedule; for future apartment buildings or multi-purpose buildings for residential purpose, there must be a written record on acceptance of completion of the foundation of such buildings.

2. Before selling or lease-purchasing future houses, the investor shall notify in writing the provincial-level housing management agency of houses eligible for sale or lease-purchase.

Within 15 days after receiving such a notice, the provincial-level housing management agency shall reply in writing to the investor about houses eligible for sale or lease-purchase; in case the conditions for sale or lease-purchase are not fully met, the agency shall clearly state the reason.

Article 56. Guarantee in the sale or lease-purchase of future houses

1. Before selling or lease-purchasing future houses, the investor of a real estate project must obtain a guarantee by a qualified commercial bank for the investor’s financial obligations to customers when the investor fails to hand over houses on schedule as committed to customers.

The State Bank of Vietnam shall announce the list of commercial banks qualified to provide guarantee in the trading of future real estate.

2. The scope, conditions, contents and charges of guarantee shall be agreed upon by the parties but must ensure the performance of the guarantor’s liability specified in Clause 3 of this Article and must be stated in a contract. The investor shall send a copy of the guarantee contract to the buyer or lessee-purchaser upon the signing of the sale, lease-purchase contract.

The guarantee contract is valid until the houses are handed over to the buyers or lessees-purchasers.

3. In case the investor fails to hand over houses on schedule as committed and at the request of the buyers or lessees-purchasers, the guarantor shall refund the advance and other amounts to customers under the house sale or lease-purchase contracts and guarantee contracts already signed.

4. The guarantee in the sale or lease-purchase of future houses shall comply with this Article and the law on guarantee.

Article 57. Payment in sale or lease-purchase of future real estate

1. The payment in sale or lease-purchase of future real estate shall be made in installments, the first of which must not exceed 30% of the contract value, subsequent installments must conform with the construction progress but the total amount must not exceed 70% of the contract value when the houses or construction works have not yet been handed over to customers; in case the seller or lessor-purchaser is a foreign-invested enterprise, the total amount must not exceed 50% of the contract value.

In case the buyer or lessee-purchaser has not yet been granted a certificate of land use rights and ownership of houses and other land-attached assets, the seller or lessor-purchaser must not collect an amount exceeding 95% of the contract value; the remaining value of the contract shall be paid when a competent state agency has granted a certificate of land use rights and ownership of houses and other land-attached assets to the buyer or lessee-purchaser.

2. The investor must use the advance paid by customers for the committed purposes.

Article 58. Rights and obligations of parties in the sale or lease-purchase of future real estate

In addition to the rights and obligations of parties in the sale or lease-purchase of real estate specified in Chapter II of this Law, the parties have the following rights and obligations:

1. The buyer or lessee-purchaser may request the seller or lessor-purchaser to provide information on the investment and construction progress, the use of advance money, and inspect in person the works;

2. The seller or lessor-purchaser shall provide information on the investment and construction progress, the use of advance money, and create conditions for the buyer or lessee-purchaser to inspect in person the works.

Article 59. Transfer of contracts for sale or lease-purchase of future houses

1. The buyer or lessee-purchaser may transfer a contract for sale or lease-purchase of a future house when the dossier of request for grant of a certificate of land use rights and ownership of houses and other land-attached assets to the buyer or lessee-purchaser has not yet been submitted to a competent state agency. The transfer of a contract for sale or lease-purchase of a future house must be made in writing, bearing the investor’s certification in the transfer document.

2. The transferee of a contract shall continue to exercise the rights and perform the obligations of the buyer or lessee-purchaser of the house toward the investor. The investor shall create conditions for the parties to transfer the contract and must not collect any charge related to the contract transfer.

3. The final transferee of a contract for sale or lease-purchase of a house will be granted a certificate of land use rights and ownership of houses and other land-attached assets by a competent state agency in accordance with the land law.

4. The transfer of contracts specified in this Article does not apply to contracts for sale or lease-purchase of social houses.

5. The Government shall detail this Article.

Chapter IV TRADING IN REAL ESTATE SERVICES

Section 1. GENERAL PROVISIONS

Article 60. Scope of real estate service trading by domestic organizations and individuals, overseas Vietnamese and foreign organizations and individuals

Domestic organizations and individuals, overseas Vietnamese, and foreign organizations and individuals may trade in services of real estate brokerage, real estate trading floors, real estate consultancy and real estate management in accordance with this Law.

Article 61. Real estate service trading contracts

1. Types of real estate service trading contracts include:

a) Real estate brokerage service contracts;

b) Real estate consultancy service contracts;

c) Real estate management service contracts.

2. Real estate service trading contracts must be made in writing. The notarization or authentication of contracts shall be agreed upon by the parties.

3. The effective time of a contract shall be agreed upon by the parties and stated in the contract. For notarized or authenticated contracts, the effective time is the time of notarization or authentication. If the parties reach no agreement or have no contract notarized or authenticated, the effective time is the signing time.

4. Real estate service trading contracts shall be agreed upon by the parties and must contain the following principal contents:

a) Names and addresses of the parties;

b) Subjects and contents of services;

c) Service requirements and results;

d) Service duration;

dd) Service charges, remuneration and commission;

e) Mode and time limit of payment;

g) Rights and obligations of the parties;

h) Settlement of disputes;

i) Effective time of the contract.

Section 2. REAL ESTATE BROKERAGE SERVICES

Article 62. Conditions for organizations and individuals trading in real estate brokerage services

1. Organizations and individuals trading in real estate brokerage services must establish enterprises and have at least 02 individuals possessing real estate brokerage practice certificates, except the case specified in Clause 2 of this Article.

2. Individuals may independently trade in real estate brokerage services but must possess real estate brokerage practice certificates and register for tax payment in accordance with the tax law.

3. Organizations and individuals trading in real estate brokerage services must not concurrently act as the broker and a contracting party in a real estate trading transaction.

Article 63. Contents of real estate brokerage

1. Finding partners that meet customers’ requirements in order to participate in negotiations and contract signing.

2. Acting as authorized representatives in performing jobs related to the procedures for sale, purchase, transfer, lease, re-lease or lease-purchase of real estate.

3. Providing information and assisting the parties in negotiating and signing contracts on sale, purchase, transfer, lease, re-lease or lease-purchase of real estate.

Article 64. Real estate brokerage remuneration

1. Real estate brokerage service trading enterprises and individuals are entitled to brokerage remuneration paid by customers regardless of the results of transactions on sale, purchase, transfer, lease, re-lease or lease-purchase of real estate between the customers and a third party.

2. The real estate brokerage remuneration level shall be agreed upon by the parties in contracts regardless of the value of brokered transactions.

Article 65. Real estate brokerage commission

1. Real estate brokerage service trading enterprises and individuals are entitled to brokerage commission when customers sign contracts on sale, purchase, transfer, lease, re-lease or lease-purchase of real estate.

2. The real estate brokerage commission level shall be agreed upon by the parties in contracts.

Article 66. Rights of real estate brokerage service trading enterprises and individuals

1. To provide real estate brokerage services in accordance with this Law.

2. To request customers to provide dossiers and information on real estate.

3. To enjoy brokerage remuneration and commission as agreed upon in contracts signed with customers.

4. To hire other real estate brokerage service trading enterprises or independent real estate brokerage service trading individuals to perform real estate brokerage within the scope of real estate brokerage service contracts signed with customers, but shall take responsibility before customers for brokerage results.

5. Other rights stated in contracts.

Article 67. Obligations of real estate brokerage service trading enterprises and individuals

1. To strictly perform contracts signed with customers.

2. To provide dossiers and information on the real estate they broker and take responsibility for dossiers and information they provide.

3. To assist the parties in negotiating and signing contracts on sale, purchase, transfer, lease, re-lease or lease-purchase of real estate.

4. To make reports in accordance with law and submit to the inspection and examination by competent state agencies.

5. To pay compensation for damage caused by their fault.

6. To fulfill tax obligations to the State in accordance with law.

7. Other obligations stated in contracts.

Article 68. Real estate brokerage practice certificates

1. An individual will be granted a real estate brokerage practice certificate when fully meeting the following conditions:

a) Having full civil act capacity;

b) Possessing a certificate of graduation from high school or higher education;

c) Having passed an examination of real estate brokerage knowledge.

2. A real estate brokerage practice certificate is valid for 05 years.

3. The Minister of Construction shall specify the grant of real estate brokerage practice certificates.

Section 3. REAL ESTATE TRADING FLOOR SERVICES

Article 69. Conditions for establishment of real estate trading floors

1. Organizations and individuals trading in real estate trading floor services must establish enterprises.

2. Enterprises trading in real estate trading floor services must have at least 02 individuals possessing real estate brokerage practice certificates; managers and operators of real estate trading floors must possess real estate brokerage practice certificates.

3. Real estate trading floors must have operation rules, names, addresses, physical foundations and technical conditions to meet the requirements of operation.

Article 70. Contents of operation of real estate trading floors

1. Carrying out transactions on sale, purchase, transfer, lease, re-lease or lease-purchase of real estate.

2. Organizing the sale, transfer, lease, re-lease or lease-purchase of real estate; introducing, listing and openly providing information on real estate to parties with trading needs; examining real estate papers to ensure that real estate is eligible for trading; acting as an intermediary for the parties to exchange and negotiate opinions and sign contracts on sale, purchase, transfer, lease, re-lease or lease-purchase of real estate.

Article 71. Rights of real estate trading floor service trading enterprises

1. To request customers to provide dossiers and information on real estate put on real estate trading floors.

2. To refuse to put on real estate trading floors real estate ineligible for trading.

3. To collect service charges from customers whose real estate is put on real estate trading floors.

4. To request customers to pay compensation for damage caused by their fault.

5. Other rights stated in contracts.

Article 72. Obligations of real estate trading floor service trading enterprises

1. To ensure that real estate put on trading floors is eligible for trading.

2. To fully and truthfully provide dossiers and information on real estate and take responsibility for dossiers and information they provide.

3. To ensure physical foundations, technical conditions and operating conditions of real estate trading floors.

4. To make reports in accordance with law and submit to the inspection and examination by competent state agencies.

5. To fulfill tax obligations to the State in accordance with law.

6. To pay compensation for damage caused by their fault.

7. Other obligations stated in contracts.

Article 73. Rights and obligations of organizations and individuals participating in real estate trading floors

1. Organizations and individuals participating in real estate trading floors have the following rights:

a) To request real estate trading floor service trading enterprises to provide dossiers and information on real estate;

b) To sign contracts with real estate trading floor service trading enterprises for sale, purchase, transfer, lease, re-lease or lease-purchase of real estate;

c) To request real estate trading floor service trading enterprises to pay compensation for damage caused by the trading floors’ fault;

d) Other rights stated in contracts.

2. Organizations and individuals participating in real estate trading floors have the following obligations:

a) To comply with operation rules of real estate trading floors;

b) To pay service charges to real estate trading floor service trading enterprises;

c) To pay compensation for damage caused by their fault;

d) Other obligations stated in contracts.

Section 4. REAL ESTATE CONSULTANCY AND MANAGEMENT SERVICES

Article 74. Real estate consultancy services

1. Organizations and individuals trading in real estate consultancy services must establish enterprises.

2. Contents of real estate consultancy services include:

a) Consultancy on real estate law;

b) Consultancy on investment, creation and trading in real estate;

c) Consultancy on real estate finance;

d) Consultancy on real estate prices;

dd) Consultancy on contracts for sale, purchase, transfer, lease, or lease-purchase of real estate.

3. The contents, scope of consultancy, rights and obligations of parties, and consultancy service charges shall be agreed upon by the parties in contracts.

4. Real estate consultancy service trading enterprises shall be responsible for performing their commitments in contracts and paying compensation for damage caused by their fault.

Article 75. Real estate management services

1. Organizations and individuals trading in real estate management services must establish enterprises. In case of trading in services of management of apartment buildings or multi-purpose buildings for residential purpose, they must fully meet conditions prescribed by the housing law.

2. Contents of real estate management services include:

a) Selling, transferring, leasing, re-leasing or lease-purchasing real estate as authorized by owners of houses or construction works, or land users;

b) Organizing the provision of services to ensure the normal operation of real estate;

c) Organizing the maintenance and repair of real estate;

d) Managing and supervising customers’ exploitation and use of real estate in accordance with contracts;

dd) Exercising the rights and performing the obligations toward customers and the State as authorized by owners of houses or construction works, or land users.

3. The contents, duration and scope of real estate management, rights and obligations of the parties and real estate management service prices shall be agreed upon by the parties in contracts.

4. Real estate management service trading enterprises shall be responsible for performing their commitments in contracts and paying compensation for damage caused by their fault.

Chapter V STATE MANAGEMENT OF REAL ESTATE BUSINESS

Article 76. Contents of state management of real estate business

1. Promulgating and organizing the implementation of legal documents on real estate business.

2. Formulating and promulgating strategies on real estate market development and plans on implementation of real estate projects.

3. Formulating and publicizing indicators for real estate market assessment.

4. Developing a real estate market information system.

5. Inspecting and examining the observance of legal provisions on real estate business and real estate project implementation.

6. Disseminating and educating in the law on real estate business.

7. Settling complaints and denunciations and handling violations of law in real estate business.

Article 77. Responsibilities for state management of real estate business

1. The Government shall perform the unified state management of real estate business.

2. The Ministry of Construction shall take responsibility before the Government for performing the state management of real estate business nationwide and have the following duties and powers:

a) To submit to competent agencies for promulgation or promulgate according to its competence legal documents on real estate business;

b) To submit to the Prime Minister strategies on real estate market development for promulgation and direct the implementation thereof;

c) To assume the prime responsibility for and coordinate with ministries, ministerial-level agencies and provincial-level People’s Committees in, organizing the implementation and management of real estate business;

d) To prescribe the grant of real estate brokerage practice certificates; and guide the training in knowledge of real estate brokerage practice and operation of real estate trading floors; to specify the establishment and organization of operation of real estate trading floors;

dd) To build and operate the national information system on the real estate market; to formulate and publicize indicators for nationwide real estate market assessment;

e) To disseminate and educate in the law on real estate business;

g) To cooperate with foreign countries in real estate business;

h) To inspect and examine the enforcement of the law on real estate business; to coordinate with provincial-level People’s Committees in organizing the inspection and review of real estate business projects in order to propose to competent state agencies the recovery, suspension, or temporary suspension of, or adjustments or conversions to, or transfer of, real estate business projects;

i) To settle complaints and denunciations and handle violations within its competence or submit them to competent agencies for handling in accordance with law;

k) To report to the Government on nationwide real estate business and market.

3. The Ministry of Natural Resources and Environment shall, within the scope of its functions, duties and powers:

a) Guide the arrangement of land funds for real estate market development in land use planning and plans;

b) Prescribe and guide land categories permitted for participation in the real estate market in accordance with the land law and this Law;

c) Prescribe and guide the grant of certificates of land use rights and ownership of houses and other land-attached assets in real estate business.

4. The Ministry of Finance shall, within the scope of its functions, duties and powers, submit to competent agencies for promulgation policies on tax and other financial obligations in real estate business.

5. The State Bank of Vietnam shall, within the scope of its functions, duties and powers, guide the payment in real estate business transactions, lending secured by real estate, and guarantee in the sale or lease-purchase of future houses.

6. Ministries and ministerial-level agencies shall, within the scope of their functions, duties and powers, coordinate with the Ministry of Construction in organizing the management, inspection and examination of real estate business.

Article 78. Responsibilities of provincial-level People’s Committees

1. To perform the state management of real estate business in their localities.

2. To arrange land funds for development of real estate projects in the land use planning and plans of their localities.

3. To promulgate, publicize and organize the implementation of plans on implementation of real estate projects.

4. To manage real estate brokerage practice, operation of real estate trading floors and other real estate services in their localities.

5. To develop real estate market information systems; to formulate and publicize indicators for real estate market assessment in their localities.

6. To disseminate and educate in the law on real estate business in their localities.

7. To cooperate with foreign countries in real estate business.

8. To inspect and examine the enforcement of, and settle complaints and denunciations about, and handle violations of, the law on real estate business in their localities within their competence; to organize the inspection and review of real estate business projects in their localities in order to recover, suspend, or temporarily suspend or make adjustments or conversions to, or transfer of, real estate business projects.

9. To report to the Ministry of Construction on the local real estate market.

Article 79. Handling of violations

1. Organizations and individuals that violate the law on real estate business shall, depending on the nature and severity of their violations, be disciplined, administratively sanctioned or examined for penal liability; if causing damage, they shall pay compensation in accordance with law.

2. Handling of recovery of real estate projects:

a) An agency competent to decide on a project investment shall decide to recover the project and transfer it to another investor for continued implementation in case the project investor violates the law on construction investment, planning or architecture without remedial measures as requested by competent state agencies and in cases where the project is subject to land recovery under the land law, except when the project has an investor that proposes to receive it under Article 6, Chapter II of this Law;

b) The investor from which a project is recovered shall be responsible for addressing the project’s existing problems while ensuring the interests and obligations of customers and parties related to the project;

c) The agency deciding to recover a project shall request the investor from which the project is recovered to address the project’s existing problems; inform and organize the selection of a new investor to which the project will be transferred for continued implementation;

d) An investor from which a project is recovered must not be assigned to act as the investor of any new real estate business project within 02 years from the date of recovery of the project.

Chapter VI IMPLEMENTATION PROVISIONS

Article 80. Transitional provisions

1. Real estate trading enterprises that are operating but have not yet fully met the conditions prescribed in this Law shall supplement all the conditions within 01 year from the date this Law takes effect.

2. Real estate business investment projects that have been approved by a competent state agency, been allocated or leased land, permitted for transfer by a written document, or for which a contract on transfer, sale, lease, or lease-purchase has been signed before the effective date of this Law, are not required to go through relevant procedures prescribed in this Law.

3. Real estate brokerage certificates granted before the effective date of this Law remain legally valid for 05 years from the date this Law takes effect; upon the expiration of this time limit, their holders shall satisfy the conditions prescribed in this Law.

4. Real estate valuation certificates granted before the effective date of this Law remain legally valid for 05 years from the date this Law takes effect; upon the expiration of this time limit, their holders shall satisfy the requirements on valuers prescribed by the law on prices.

Article 81. Effect

This Law takes effect on July 1, 2015.

The Law on Real Estate Business No. 63/2006/QH11 ceases to be effective on the date this Law takes effect.

Article 82. Detailing provisions

The Government and competent agencies shall detail the articles and clauses as assigned in the Law.

This Law was passed on November 25, 2014, by the 13th National Assembly of the Socialist Republic of Vietnam at its 8th session.