Decree No. 02/2022/ND-CP, issued and effective from March 1, 2022, requires all individuals and organizations engaged in real estate business to fully comply with its provisions. Four conditions under the new regulations.
1. When establishing a business
For individuals or organizations wishing to engage in real estate business in 2022, the first thing they need to do is:
- Establish a business whose main line of business is real estate.
- Comply with legal regulations regarding the establishment of businesses or cooperatives.
2. Information must be made public.
The following information is publicly available:
- Business information: Business name, address, phone number, legal representative.
- Information on real estate (according to Clause 2, Article 6 of the 2014 Law on Real Estate Business): information on the mortgage of real estate projects, houses, and construction works put into business (if any), the quantity and type of real estate products put into business; the quantity and type of real estate sold, transferred, leased, and the quantity and type of remaining products.
Address for information declaration:
- Website and headquarters of the Management Board for real estate investment and business projects.
- Real estate exchanges, in the case of conducting business through an exchange platform.
Note: If information that has already been made public subsequently changes, it must be updated immediately after the change occurs.
3. Regulations on real estate eligible for business operations in 2022
Houses and buildings require:
- Register ownership of construction works and houses attached to land in the land use right certificate. If the real estate investment project already includes houses and construction works, only the land use right certificate is required.
- There are no disputes regarding the right to use or own the land, houses, and buildings.
- The right to use the land is not subject to seizure for the enforcement of a judgment.
Land that is permitted for commercial use must meet the following requirements:
- We have land ownership certificates (red and pink certificates).
- There are no disputes regarding land use rights.
- The land use rights are not subject to seizure for enforcement of judgment.
- The land use rights are still within their validity period.
The following types of properties under construction are required:
– There are land use right documents, project design and construction drawings approved by competent authorities at all levels, construction permits, and corresponding acceptance documents according to the project progress.
– If it is a building or apartment complex intended for residential use, there must be a completion certificate for the foundation.
– The investor must submit written notice to the provincial housing management agency stating that the housing meets the conditions for sale or lease-purchase before selling or leasing housing units under construction.
4. Capital requirements
According to the Ministry of Construction, Decree 02/2022/ND-CP replaces Decree 76/2015/ND-CP, removing the requirement of 20 billion VND in registered capital to ensure compliance with Point a, Clause 2, Article 75 of the 2020 Investment Law. In cases where an investor is selected as the project owner for a real estate project, they must meet the capital requirements as stipulated by law.
- For projects smaller than 20 hectares, the equity capital must not be less than 20% of the total investment.
- For projects with a land area exceeding 20 hectares, the equity capital must not be less than 15% of the total investment.
Equity capital is determined based on the most recent audited financial statements or the results of an independent audit conducted by the enterprise in the current year or the immediately preceding year. If the enterprise is newly established, equity capital is determined based on the actual contributed charter capital.
5. Conditions for conducting small-scale real estate business
In 2022, households, organizations, and individuals selling, transferring, leasing, or lease-purchasing real estate on a small scale and infrequently were not required to meet the above four conditions. Specifically:
- In cases of bankruptcy, dissolution, or division, organizations and agencies may sell houses, construction works, or transfer land use rights in accordance with the law.
- In cases where the real estate is public property, the organization or agency shall sell, transfer, or lease it in accordance with the law.
- Credit institutions, branches of foreign banks, asset management companies of credit institutions (AMCs), and Vietnam Asset Management Company (VAMC) may sell houses, construction works, transfer land use rights, and real estate projects that are being used as collateral or mortgages to recover debts in accordance with the law.
- Organizations, households, and individuals selling houses, construction works, or transferring land use rights must comply with decisions of competent state agencies when resolving disputes, complaints, and denunciations.
- Households, organizations, and individuals selling, leasing, or lease-purchasing houses and construction works, or transferring land use rights that they legally own.
- Households, organizations, and individuals selling, leasing, lease-purchasing, or transferring real estate that they have invested in and constructed, but which is not part of a real estate investment project for business purposes as stipulated by law.
6. When transferring a sales contract
The transfer of contracts for the purchase and lease-purchase of future-built housing and existing houses and construction works does not apply to the purchase and transfer of lease-purchase or lease-purchase contracts for social housing.
The transfer of a sales contract must meet certain requirements. Four conditions as stipulated.
- There must be a sales or lease-purchase contract as prescribed. If the parties have signed a contract before the effective date of this Decree, the signed contract must be available.
- This refers to cases where individuals have not yet submitted applications to competent state agencies for the issuance of Certificates of Land Use Rights, Ownership of Assets, and Houses Attached to Land.
- The contract for the purchase or lease-purchase of a house or construction project is free from disputes or claims.
- To ensure the fulfillment of obligations as stipulated by law, houses and construction works are not subject to seizure or mortgage, except with the consent of the mortgagee.