Vietnam Business Law is a website managed by lawyers of Venture North Law Limited (VNLaw). Venture North Law Limited (VNLaw) is a Vietnamese commercial law firm. We won the Rising Law Firm of the Year Award at the Southeast Asia Law Awards for the years 2020 and 2021 held by The Legal 500. Very few Vietnamese law firms have achieved a similar regional recognition.
Posted in: Real Estate
The new Real Estate Business Law 2014, Housing Law 2014 and most recently Decree 99/2015 implementing the Housing Law 2015 have changed substantially the way that a residential housing project is financed. Set out below are some of the key changes most of which took effect from December 2015:
Decree 76/2015 has just been issued to implement the Law on Real Estate Business 2014 and will take effect from 1 November 2015. The main body of Decree 76/2015 only has 15 pages and 16 articles which seems to address only a few areas of the Law on Real Estate Business 2014. In particular,
The ability to sell unfinished construction works is important for real estate developers who do not have sufficient financing to complete the works. Unfortunately, there is no clear legal framework supporting such sale. This is because:
Under the Law on Real Estate 2014, a real estate developer must provide a bank guarantee to secure for the developer’s obligations to refund to a house buyer the advance payment that the developer has received from the buyer if the developer fails to deliver the house to the buyer on time (a developer refund guarantee). In June 2015, the State Bank of Vietnam issued Circular 7/2015 on bank guarantees which provides further guidance on a developer refund guarantee as follows: