From March 1, 2022, more conditions for running a real estate business

According to current regulations, in Article 3 of Decree No. 76/2015/ND-CP, organizations and individuals only need to set up enterprises according to the provisions of law and have legal capital not less than 20 billion VND (except for the contract of sale, transfer, lease, lease-purchase of real estate on a small scale, infrequently or real estate service business) is allowed to run a real estate business.

However, according to the provisions of Article 4 of Decree 02/2022/ND-CP, the conditions for organizations and individuals doing real estate business will have many new conditions.

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- For organizations and individuals doing real estate business, the following conditions must be met:

+  Establish an real estate enterprise in accordance with the law on enterprises or a cooperative in accordance with the law on cooperatives (hereinafter referred to as enterprise);

+ Must be disclosed on the enterprise's website, at the head office of the project management board (for real estate investment and business projects), at the real estate trading floor (for business cases through the real estate exchange) information about the business (including name, head office address, contact phone number, legal representative), information about real estate put into business as prescribed in Clause 2, Article 6 of the Law on Real Estate Business, information about the mortgage of houses, construction works, real estate projects put into business (if any), information on the quantity, types of real estate products being traded, quantity and types of real estate products being sold, transferred, lease-purchased and the remaining quantity and types of products that are still being traded.

With public information specified at this point, which changes later, it must be updated promptly after such changes;

+ Only trade in real estate that fully meets the conditions specified in Article 9, Article 55 of the Law on Real Estate Business.

- In case an investor is selected to be the investor of a real estate project according to the provisions of law, such investor must have an equity capital of not less than 20% of the total investment capital for the project less than 20 hectares, not less than 15% of the total investment capital for project from 20 hectares or more. When conducting real estate business, the project investor must satisfy the conditions specified in Clause 1 of this Article.

The determination of equity specified in this Clause is based on the results of the most recent audited financial statements or the results of independent audit reports of the operating enterprise (made in the year or the preceding year); In the case of a newly established enterprise, the equity capital shall be determined according to the actual contributed charter capital as prescribed by law.

This Decree takes effect from March 1, 2022.