Decree No. 96/2024/ND-CP issued by the Government provides detailed regulations on certain provisions of the Law on Real Estate Business.

1. Criteria for identifying individuals engaging in small-scale real estate business:
- Article 7, Clause 1 stipulates that individuals engaging in small-scale real estate business must meet the following requirements:
(a) Not required to establish an investment project under construction and housing laws.
(b) Contract value must not exceed VND 300 billion per contract, with no more than 10 transactions annually. If only one transaction occurs in a year, its value is not considered.
It should be noted that under condition (b), exceeding one of the two criteria still qualifies the business as small-scale.

2. Mandatory information disclosure:
Real estate businesses must fully disclose 18 types of information before signing contracts related to the sale, transfer, lease, or lease-purchase of properties, as well as project transfers. This includes details on investment decisions, land allocation, and future housing projects, among others.

3. Regulations for real estate trading floors:
- Licensing authority: Provincial real estate management authorities are responsible for issuing operating licenses to real estate trading floors.
- Operating conditions:
+ Legal representatives and managers must be accountable for the floor’s activities. One individual may simultaneously hold both roles.
+ The floor must have a stable address for at least 12 months and appropriate technical equipment.
+ Compliance with anti-money laundering laws is mandatory.

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.