The Government proposes that provincial People’s Committees decide on the transfer of a part or the entirety of real estate projects, instead of the Prime Minister.
On the afternoon of July 29, the National Assembly Standing Committee gave feedback on the draft Law on Real Estate Business (amended).
Presenting the proposal, Minister of Construction Tran Hong Minh stated that the draft Law consists of 10 chapters and 62 articles. Regarding the transfer of a part or the entirety of real estate projects, the Government proposes delegating the entire decision-making authority to the provincial People’s Committees, instead of the Prime Minister.
Under current law, the Prime Minister decides on the transfer of a part or the entirety of projects whose investment policies are approved by the Government. Provincial People’s Committees are only permitted to decide on transfers for projects approved by the province.
Reviewing this content, the Chairman of the Economic and Financial Committee, Phan Van Mai, requested the drafting agency to clarify the case of decentralizing to the provincial People’s Committees the decision to transfer projects already approved by the Prime Minister. According to Mr. Mai, these projects may be inter-provincial, involve national defense and security factors, have large financial obligations, or require special mechanisms that need opinions or decisions from central authorities.
Also according to the draft Law, six groups of business conditions could be simplified, including conditions for real estate business organizations and individuals, as well as conditions for existing and future-formed houses and construction works put into business.
The Government also proposes removing several business conditions for real estate services, including requirements regarding names, operation registration, and training certificates of real estate trading floors.
At the same time, according to Minister Minh, about one-third of administrative procedures regarding the registration and granting of rights to exploit and use information and data on housing and the real estate market, as well as procedures for the new issuance and re-issuance of operating licenses for real estate trading floors, could also be cut.
Regarding payment and guarantees in the purchase, sale, and hire-purchase of future-formed real estate, the draft Law stipulates that the seller must not collect more than 95% of the contract value before the buyer receives the land use right certificate (red book) – similar to the current law. However, the drafting agency proposes that the remaining 5% of the contract value must be transferred to a locked account at a bank or another form of guarantee as agreed upon by the parties.
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