Legal regulations in the real estate sector play a vital role in governing relationships related to land, housing, and assets attached to land. A well-established legal framework ensures transparency, stability, and sustainability for the real estate market. Below, NPLaw invites readers to explore the main legal issues concerning real estate law.

I. Understanding legal regulations on the real estate sector

Real estate law refers to the system of legal provisions regulating activities related to ownership, transfer, use, and management of land, housing, and assets attached to land. It is a critical factor in ensuring transparency, legality, and safety in real estate transactions.

Key legal documents (legislative instruments) governing such a sector include the Land Law 2024, the Housing Law 2023, the Real Estate Business Law 2023, along with related decrees and circulars guiding their implementation. Understanding and complying with these laws help avoid legal risks, prevent disputes, and safeguard the legitimate rights and interests of individuals and organizations participating in the real estate market.

II. Legal regulations in the real estate sector

1. Scope of real estate under the law

Under Clause 1, Article 107 of the Civil Code 2015, real estate includes:

  • Land;
  • Houses and constructions attached to land;
  • Other assets attached to land, houses, or constructions;
  • Other assets as prescribed by law.

2. Conditions for operating in the real estate sector

Pursuant to Article 9 of the Real Estate Business Law 2023, the conditions for operating in the sector are as follows:

- For organizations and individuals:

  • Must establish an enterprise or cooperative with real estate business as a registered business line, except for certain cases specified in Clauses 3 and 4 of this Law. Entities providing real estate services must also establish an enterprise or cooperative accordingly.

- For enterprises:

  • Must not be prohibited or suspended from operation by a court or competent State authority;
  • Must comply with the ratio of credit and bond debts to the owner’s capital as prescribed by the Government;
  • Must meet requirements of the owner’s capital when implementing projects: at least 20% of total investment for projects under 20 hectares, and at least 15% for projects from 20 hectares or more. If undertaking multiple projects simultaneously, adequate capital must be available for each.

- For small-scale individual traders:

  • Not required to establish an enterprise but must declare and pay taxes in accordance with the law.

- For organizations/individuals selling or leasing property without business purposes or on a small scale:

  • Not obliged to fully comply with all regulations of the Real Estate Business Law 2023 but must declare and pay taxes, and have sale or lease agreements notarized or authenticated if a seller or lessor is an individual.

- For real estate service providers:

  • Must establish an enterprise or cooperative, and meet all legal requirements under the Real Estate Business Law.

3. Responsibilities of organizations and individuals in the real estate sector

When engaging in real estate activities, organizations and individuals must:

  • Comply with all principles of real estate business as prescribed in Article 4 of the Real Estate Business Law 2023;
  • Publicly and honestly disclose information on the real estate activities (Article 6 of the Real Estate Business Law 2023).

III. Questions on legal questions in the real estate sector 

1. Necessary points to note in real estate activities

  • Meeting business eligibility requirements: Establish a legal entity and ensure compliance with statutory capital requirements;
  • Obtaining legal contracts: All transactions (sale, transfer, lease, etc.) must be in writing and be notarized or authenticated if required;
  • Conducting due diligence on property legality: Verify title deeds, zoning status, disputes, or mortgages before transactions;
  • Transferring lawful projects: Any project transfer must be approved by competent authorities and comply with the legal process.

2. Common legal obstacles in the real estate sectors 

Some common problems that may be encountered in complying with laws in the real estate sector: 

  • Complex and lengthy procedures: Processes for obtaining land use rights certificates, changing land use purposes, or securing construction permits can be time-consuming due to administrative overlaps;
  • Lack of transparency in property legal status: Some properties may be mortgaged, under dispute, or subject to zoning without disclosure, leading to invalid transactions;
  • Ambiguity in financial obligations: Unclear or inconsistent payments of taxes and fees (personal income tax, registration fees, non-agricultural land use tax) can create difficulties;
  • Limited legal knowledge: Individuals, households or small businesses often do not have enough legal knowledge to draft or understand real estate transfer agreements and sale contracts;
  • Overlapping legal provisions: Discrepancies between the Land Law, Housing Law, Construction Law, and Real Estate Business Law create challenges in practical application.

3. Competent State authority over the real estate sector

According to Article 81 of the Real Estate Business Law 2023, State management authority in the real estate sector is divided as follows:

- The Government: Exercises unified management of the real estate sector.

- The Ministry of Construction: The focal agency helps the Government play a central role in managing the real estate sector, with the main tasks:

  • Developing and submitting legislative instruments on real estate;
  • Proposing policies and regulating the real estate market;
  • Managing real estate brokerage and trading floors, and issuing broker licenses;
  • Operating the national information system on housing and real estate;
  • Inspecting, examining, and handling violations, and resolving complaints and denunciations;
  • Coordinating with ministries and local authorities in market regulation.

- Ministries and ministerial-level agencies: Coordinating with the Ministry of Construction within the scope of their functions and tasks to perform management of the real estate sector.

- Provincial People’s Committees:

  • Managing real estate activities, brokerage, and trading floors locally;
  • Publishing market indices and operating local housing information systems;
  • Conducting inspections, handling violations, and resolving disputes and denunciations within their jurisdiction;
  • Reporting periodically to the Ministry of Construction (including coordinating with the Ministry of Construction in market regulation).

- District-level People’s Committees:

  • Managing real estate activities within their delegated authority and following guidance from higher levels.

IV. Legal advisory services on the real estate sector

The above article from NPLaw provides insights into real estate law. With a team of experienced lawyers and legal experts, NPLaw is always ready to accompany, advise, and assist clients on all legal matters relating to the real estate sector.