What are the conditions for buying and selling project land from August 1?

The 2023 Law on Real Estate Business, effective from August 1, stipulates the conditions for land projects to transfer land use rights in Article 31.

Accordingly, the project must complete the investment in construction of technical infrastructure works according to the plan; ensure the provision of electricity, water, drainage, waste collection services...

The project has a land use right certificate, no disputes or if there are any, they have been resolved by a judgment, decision or ruling. The land use right is not seized, not in a case where the law prohibits transactions, and is in a period of suspension or temporary suspension of transactions.

The regulation also states that projects not located in 105 cities and towns are prohibited from dividing plots, selling land, or auctioning land use rights to invest in housing projects, only then can land be bought and sold.

Before transferring land use rights to people to build their own houses, the investor must notify the management agency in writing about the eligibility for transfer. The project is eligible for sale when information about the land use rights certificate is made public; the management agency confirms the eligibility for transfer; confirms the completion of investment in planned infrastructure works; confirms the investor has fulfilled financial obligations regarding land. The investor must also publicly disclose restrictions on land use rights and project mortgages, if any.

Thus, the new regulation is closely evaluated by experts and will change the "game" of the real estate market, especially the land segment in 105 cities and towns across the country (places that were not previously tightened). Because the current law only prevents the subdivision and sale of land in wards of special-class cities and class I cities directly under the Central Government; areas with high requirements for landscape architecture, central areas and around buildings that are architectural highlights in urban areas; frontage of regional-level roads and above and main landscape roads in urban areas.

Article 32 of this law also requires the party transferring the land to be the investor of the real estate project. In case of being sanctioned for administrative violations in the fields of investment, construction, land, housing, real estate business, and tax, the investor must complete the sanction decisions before being allowed to sign a contract to transfer land use rights to the people.