The real estate industry has long been regarded as a cornerstone of global economic growth and investment. Characterized by its cyclical nature, the real estate business is an intricate interplay of economic trends, market dynamics, and consumer behavior. As we delve into the world of real estate, we explore the current trends, challenges, and opportunities that define this ever-evolving sector. Please contact immediately Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline - 0903.419.479 for legal advice and support.

1. What is real estate business?

According to Clause 1, Article 3 of the Law on Real Estate Business 2014, real estate business is the investment of capital to carry out construction, purchase and transfer activities for sale or transfer; lease, sublease, lease purchase of real estate; real estate brokerage services; real estate trading floor services; real estate consulting or real estate management services for profit.

Regulations On Real Estate Business

2. Principles of real estate business

Specifically, in Article 4 of the Law on Real Estate Business 2014, the principles of real estate business are as follows:

• Equality before the law; freely agree on the basis of respecting the legitimate rights and interests of the parties through the contract, not contrary to the provisions of law.
• Real estate put into business must fully meet the conditions under the Law on Real Estate Business 2014.
• Real estate business must be honest, public and transparent.
• Organizations and individuals have the right to trade in real estate in areas outside the scope of national defense and security protection according to master plans and plans on land use approved by competent state agencies.

3. What types of real estate are included in the real estate business?

Types of real estate put into real estate business according to the provisions of Article 5 of the Law on Real Estate Business 2014, include:

• Available houses and construction works of organizations and individuals;
• Houses, construction works formed in the future of organizations and individuals;
• Houses and construction works are public property permitted by competent state agencies to be put into business;
• Types of land that are permitted to be transferred, leased or sub-leased according to the provisions of the law on land are allowed to trade in land use rights.

​Regulations On Real Estate Business

4. Prohibited acts in real estate business

According to Article 8 of the Law on Real Estate Business 2014, individuals and organizations are prohibited from performing the following acts in real estate business:

• Real estate business does not meet the conditions under the Law on Real Estate Business 2014.
• To decide on investment in real estate projects that are inconsistent with master plans and plans already approved by competent state agencies.
• Failure to disclose or incompletely and truthfully disclose information about real estate.
• Fraud and deception in real estate business.
• Illegally mobilizing and appropriating capital; using capital mobilized from organizations and individuals and advances from buyers, lessees, and lessees to purchase future real estate for improper purposes as committed.
• Failure to perform or incompletely fulfill financial obligations to the State.
• Granting and using real estate brokerage practice certificates in contravention of the Law on Real Estate Business 2014.
• Collecting fees, charges and other money related to real estate business in contravention of law.

5. State policy towards real estate investment and business

For real estate investment and business, the State has introduced the following policies:

• The State encourages organizations and individuals of all economic sectors to invest in real estate business in accordance with the country socio-economic development goals in each period and each locality.
• The State encourages and adopts policies on tax exemption and reduction, land use levy, land rent, and preferential credit for organizations and individuals investing in construction of social housing and projects eligible for investment incentives.
• The State invests and encourages organizations and individuals to invest in the construction of technical infrastructure outside the project fence; support investment in construction of technical infrastructure in the fence for projects eligible for investment incentives.
• The State invests and encourages organizations and individuals to invest in urban public service projects and social infrastructure works within the scope of real estate investment and business projects.
• The State has mechanisms and policies to stabilize the real estate market when there are fluctuations, ensuring benefits for investors and customers.

The real estate business continues to evolve in response to technological advancements, changing societal preferences, and global challenges. While the industry is not without its share of challenges, it is also ripe with opportunities for investors, developers, and industry players who are willing to adapt, innovate, and stay ahead of the curve. As the world transforms, the real estate sector remains a vital component of economic growth, offering a multitude of avenues for success. Please feel free to contact Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline - 0903.419.479 for legal advice and support.

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