Real estate transactions must be carried out on the trading floors: MoC

VIETNAM, October 1 – HÀ NỘI The Ministry of Construction (MoC) has proposed that real estate projects sell their products on real estate trading floors, in accordance with the draft amendment to the Real Estate Business Law.

The Ministry has also suggested that people carrying out brokerage activities must hold a certificate of practice.

Deputy Minister of Construction Nguyễn Văn Sinh said that this revision mainly aims to clarify some contents related to real estate trading floors, regulations on commercial real estate products through the trading floor and new types of real estate products. Notably, the amendment includes regulations for the real estate market to ensure stable and sustainable development.

The national real estate market saw strong growth in many localities in the first half of 2021. At that time, the market needed the state to have policies and regulatory tools to help its sustainable development. They included regulatory tools on taxation, credit, land and finance.

The law on real estate affairs will be revised to address the shortcomings that hinder socio-economic development; and eliminate duplication in enforcement and administrative procedures.

According to the director of the Department of Housing and Real Estate Market Management Bùi Xuân Dũng, the draft would add regulations on the types of real estate products marketed and clarify the types of houses available and future residential houses.

Regarding the types of houses, Hoàng Văn Cường, a member of the Finance and Budget Committee of the National Assembly, said that attention should be paid to the type of future housing products. This includes whether or not they should be acknowledged as they are only on paper.

Therefore, transactions, management and registration cannot be the same as for finished housing products.

At present, the market often witnesses disputes regarding this type of housing product, according to Cường.

Phạm Thanh Hưng, vice president of Cen Group, said that future real estate products often drive market growth. Therefore, the proposal on trading floors is necessary.

These projects are formed without a red book until completion, so they must be verified on a trading floor to ensure legality and safety for buyers and sellers, Hưng said. Payment for this product often takes a long time, so transactions through the trading floor will ensure advantages for traders.

Hưng said that brokerage activities must be certified and it is also necessary to distinguish between brokers and sales agents. Brokers can be individuals or organizations with legal status.

Now, there are many people who are engaged in agency type sales, but they have a bad experience, so it is necessary to consider the authority in signing and closing the transaction.

Hưng proposed that only brokers with practice certificates should be able to assess and sign trades.

Vietnam Real Estate Brokers Association Vice President Nguyễn Chí Thanh agreed that trading future housing products on trading floors should be mandatory, but the law should provide specific conditions for establishing a trading floor immovable.

Thanh added that the draft sets out detailed conditions for granting practice certificates for real estate brokers, but making the certificate valid for two years is not reasonable. This puts pressure on brokers as the review is difficult.

Many countries do not specify the validity period of this certificate, which allows brokers to feel secure in their business, he said.

Apartments

The Ministry has proposed regulations on the duration of ownership and use of apartments in the draft amendment to the Housing Act.

According to Cường, a member of the Finance and Budget Committee of the National Assembly, this project includes many new points, including the regulation of the conditions of use of apartments. This regulation will help people have a better chance of buying apartments.

People want to have permanent ownership of real estate products to pass on to their children. If the state has transition to homeownership regulations with a term, then people will need to consider renting or buying.

If there is an ownership term for the apartment, there should also be a lease term for the land for the construction projects of those apartments.

Nguyễn Quốc Hiệp, president of the Vietnam Building Contractors Association, said the proposal setting a tenure for apartments is reasonable because apartments do not exist permanently.

Hiệp said the state should resolve existing barriers for old apartment buildings before having regulations on ownership conditions. This would help to obtain the agreement of the population.

Now there are hundreds or thousands of households in apartment buildings, so it is difficult to renovate apartments.

Lawyer Nguyễn Đình Vinh, director of law firm VietThink, said that many countries have regulations on how long apartments can be used. Condotel, a type of apartment, is of higher quality than many current apartment buildings. However, the condotel only has a 50-year lease, while apartment buildings are granted for an indefinite period. Therefore, the housing law should be equal in terms of apartment ownership.

However, some companies such as CEO Group, Sunshine, Sun Group and VinaCapital believe that regulations on apartment ownership conditions can affect the real estate market.

With this settlement, people may want to buy land to build houses for long-term ownership, affecting apartment development.

At the same time, apartment buildings are a development model currently adapted to save land resources. At the same time, companies are afraid to invest in the development of apartment buildings. VNS

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