According to the Law on Real Estate Business No. 66/2014/QH13 approved by the National Assembly on November 25, 2014, replacing the Law on Real Estate Business No. 63/2006/QH11, from July 01, 2015, organizations and individuals dealing in real estate are required to establish enterprises or cooperatives (below referred to as enterprises) and have a legal capital of at least VND 20 billion.
Organizations, households and individuals that irregularly sell, transfer, lease or hire-purchase small real estate are not required to establish enterprises but declare tax in accordance with law.
Another important content is regulation on guarantee in sale and hire-purchase of prospective houses. Accordingly, before selling or hire-purchasing prospective houses, investors of real estate projects must have their financial obligations for clients guaranteed by capable commercial banks when investors fail to hand over houses according to schedule committed to clients. In case the investor fails to hand over the house according to the committed schedule and the purchaser and the hirer may request, the guarantor shall refund advance payment and other money amounts to clients under the concluded house sale, purchase, or hire- purchase contracts and guarantee contract. The State Bank of Vietnam shall publish the list of capable commercial banks providing guarantee in prospective real estate business.
Under this Law, individuals that are entitled to provide independent real estate brokerage services must possess real estate brokerage practice certificates, having full civil act capacity; Possessing a secondary education or higher diploma; Having passed real estate brokerage knowledge test and register to pay tax in accordance with the tax law. Real estate brokerage practice certificates will be valid for 5 years. Real estate brokerage certificates that have been granted before the effective date of this Law shall be legally valid for 5 years from the effective date of this Law; upon the expiration of this time limit, persons eligible for real estate brokerage certificates must fully satisfy conditions specified in this Law.
This Law takes effect on July 01, 2015.