Law on Real Estate Business 2023 (“Real Estate Law”) was passed by the National Assembly on November 28, 11 and took effect from August 2023, 01. The Law on Real Estate Business was promulgated to create a new legal environment for real estate business, one of the important points of which is the construction, management and exploitation of information systems and databases on housing and the real estate market. Decree No. 08/2024/ND-CP of the Government detailing a number of articles of the Law on Real Estate Business on the construction and management of information systems and databases on housing and the real estate market (“Decree 94”) was issued on July 24, 7, replacing Decree No. 2024/44/ND-CP dated June 2022, 29 of the Government on the construction, management and use of the housing and real estate market information system, detailing and guiding the implementation of specific contents on the construction, management and exploitation of this information system and database as well as defining the responsibilities of relevant parties. The launch of this information system and database is an important milestone in ensuring the efficiency and transparency of the Vietnamese real estate market.
We believe that there are some contents in Decree 94 that need to be noted by real estate businesses (“Investor”), specifically as follows:
- Responsibility for providing information and data on projects and products:
The investor is responsible for providing information and data about the project and products to the competent state agency.[1], As follows:
One, Investors must disclose full information before the real estate project or product is put into business. Investors must provide information through the following channels: 1) Competent state agencies according to their expertise; 2) The investor’s business website; and 3) Through the information system and database on housing and the real estate market (through the granted account and Form No. 9 attached to Decree 94).
Information that needs to be disclosed includes information and data on: real estate projects; future housing and construction works; existing housing and construction works; information on land use rights with technical infrastructure in real estate projects; decisions approving detailed planning or master plans; notice of appraisal results of investment construction feasibility study reports / notice of appraisal results of basic design; written commitment to issue guarantees from domestic commercial banks / foreign bank branches legally operating in Vietnam.
Hai, In case the Investor transfers all or part of the project, it is necessary to adjust the information and data about the project on the above channels. The Investor receiving the transfer must provide information and data through the granted account and Form No. 10 of Decree 94.
Well, In case of real estate product transactions, the Investor shall declare the quantity and value of transactions in Form No. 11 of Decree 94. In this case, the Investor may choose to declare according to each reporting period (quarterly) or immediately upon the occurrence of the transaction.
- Create and hand over access accounts:
The creation and handover of system access accounts to the Investor is carried out immediately after the real estate project is issued an Investment Policy Decision or approved by the competent state management agency or approved for investment in the real estate project.[2]. The above information reports of the Investor are prepared according to Form 9, Form 10 and Form 11 of Decree 94 and will be received by the People’s Committee of the province or centrally-run city where the project is located.
- Exploiting information systems and databases:
Investors can use and exploit information and data on housing and real estate market provided by the system. The information system and database include 2 groups of information and data on housing and real estate market nationwide and locally.
To serve the planning of real estate projects, Investors should pay attention to information groups on programs, development plans, housing support, housing support programs in the area according to the national target program nationwide; results of implementing the development of housing types; or information on housing for resettlement and public service.
Investors in need can use and exploit this information and data through the following forms: (1) Access the portal of the housing and real estate market information system on the website of the Ministry of Construction: https://batdongsan.xaydung.gov.vn; (2) Through data sharing services according to regulations on management, connection and sharing of digital data of state agencies under Decree 47/2020/ND-CP; (3) By contract with the agency managing the information system on housing and real estate market; and (4) Through a request form (attached to Decree 94) sent to the Ministry of Construction or the Provincial People’s Committee and will respond within 07 days.[3]In case the Investor needs to use specialized information and data, it is necessary to pay a fee according to the provisions of the law on prices.[4].
- Some other notes
During the process of providing, declaring, using and exploiting information and data, investors need to pay attention to comply with:[5]
- Share, report, and provide complete information on housing and the real estate market according to regulations and on time. Take full responsibility for the content and data provided and shared. In case of force majeure or objective obstacles that prevent sharing and providing information on time as prescribed, a written report must be submitted and information must be shared and provided as soon as possible.
- Be responsible for the account granted and all activities performed using your account. In case your password is lost or stolen or you discover someone illegally using your account, you must promptly notify the agency managing and operating the information system; do not distort, damage, or lose information or data; illegally seize, destroy, or damage information or data.
- Do not take advantage of sharing and providing information to harass, profit, or disseminate information contrary to the provisions of law; or hinder the exploitation and use of information.
- Exploiting and using information on housing and real estate market contrary to the provisions of Decree 94 and other provisions of law.
- Do not share or provide to third parties data shared or provided by competent state agencies for exploitation or use, except in cases where permitted by competent housing and real estate market information system management agencies.
- Promptly notify the housing and real estate market information system management agency of any errors in shared and provided information and data.
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[1] Clause 4, Article 15 of Decree 94
[2] Clause 4, Article 24 of Decree 94
[3] Clause 2, Article 21 of Decree 94
[4] Clause 4, Article 21 of Decree 94
[5] January 25th January 94th