1. Opinions from delegates who are real estate investors
Over the past few days, there has been a lot of discussion within the real estate industry regarding the regulations mandating floor transactions for real estate transactions. Although this regulation is not new, as it first appeared in the 2006 Law on Real Estate Business. Subsequently, it was abolished when the 2014 Law on Real Estate Business came into force. However, it has now been reintroduced in the latest Draft Law on Real Estate Business. In particular, two transactions must be conducted
– Investors sell, lease-purchase houses or future constructions;
– Transfer, lease or sub-lease land with technical infrastructure.
According to the delegates who are real estate investors, in the current conditions, trading through the floor has not been managed yet. In fact, there is a situation where investors and exchanges link together to raise prices, create a virtual price fever, and operate without transparency. From the perspective of “insiders”, customers have the right to choose to buy directly from the investor or through the floor, but the products must be eligible to be sold. Therefore, the delegates said, this regulation is not necessary.
The proof is that in the past, there have been many lawsuits between customers suing investors, and even the distribution floor for selling illegal products. So being forced to trade through the exchange is not the key point.
2. Analyze the pros, cons, and consequences of regulation
The goal of adding this regulation is for customers to buy safe projects. Accordingly, the positive side of compulsory trading through the exchange is:
– Increasing the State’s ability to manage and supervise transactions;
– The State can grasp the database on market transactions;
– Manage transactions of small brokerage groups;
– Transparency of the transaction process.
Besides, the delegates also mentioned the limitations of this transaction as:
– Create complicated legal procedures and processes for customers and investors;
– Increased cost burden;
– Enterprises lose the initiative in business implementation.
Not to mention, when all transactions are sold through the floor, it will lead to the monopoly of selling products. Therefore, the authorities must control the quality of the floors, set strict regulations on criteria to set up the floors that are capable of operating.
3. Responsibilities of Real Estate Investment Brokers
According to data from a distributor specializing in large projects – DKRA Group, 95-98% of real estate transactions formed in the future are done through brokers. Therefore, to ensure legal safety, it is necessary to stipulate that brokers must have a practicing code. When working with notarial practice organizations, brokers must leave a code to save information. If wrong advice, improper practice, brokers must be held responsible before the law.
(Refer to Investment Newspaper dated June 28, 2023)
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