Ministry to scrap numerous property trading conditions

HCMC – The Construction Ministry is seeking feedback for amending some articles of the Laws on Construction, Housing, Property Business, and Urban Planning to abolish numerous unreasonable conditions on property trading and development.

The ministry said in a document that a host of regulations on real estate brokering and business should be removed from the 2014 Law on Property Business.

The current regulation stipulates any organizations or individuals wishing to conduct real estate transactions shall set up enterprises or cooperatives and have legal capital of at least VND20 billion.

Meanwhile, the 2014 Investment Law and the 2014 Enterprise Law exclude the legal capital regulation. Therefore, the Law on Property Business should be amended accordingly.

The 2014 Enterprise Law prescribes companies in the conditional business sectors are subject to particular business conditions while the Law on Property Business asks real estate brokers to obtain practicing certificates.

That any real estate brokering service providers must set up their own enterprises, and there are at least two employees obtaining real estate brokering licenses is deemed unnecessary, making life more difficult for enterprises.

The rule that a real estate service provider cannot perform as both a broker and a contracting party in a real estate transaction should be eliminated as well. The reason is that brokers have the right to participate or are authorized to make real estate deals.

That real estate trading floors must have regulations, names, addresses, facilities and technical conditions satisfying operational requirements should also be abolished, according to the ministry.

Source: The Saigon Times