Finalized 3 Real Estate Laws Effective from August 1, 2024

National Assembly Passes Amendments to Three Real Estate Laws, Effective from August 1, 2024

On the morning of June 29, the National Assembly passed amendments and supplements to several laws, including Land Law No. 31/2024/QH15, Housing Law No. 27/2023/QH15, Real Estate Business Law No. 29/2023/QH15, and Credit Institutions Law No. 32/2024/QH15, with 404 out of 469 delegates voting in favor.

According to the newly passed amendments, the Land Law, Housing Law, and Real Estate Business Law will take effect from August 1, 2024, five months earlier than the previously scheduled date of January 1, 2025. Additionally, two clauses from Article 200 and Article 210 of the Credit Institutions Law will also take effect from August 1 to ensure consistency in handling secured assets of credit institutions.

Concerns About Implementation Readiness

Before the National Assembly’s approval, Chairman of the Economic Committee, Vũ Hồng Thanh, presented a report summarizing opinions on the amendments. While many supported the necessity of the new laws and their early implementation, concerns were raised about whether sufficient conditions were in place for effective enforcement.

Some lawmakers suggested keeping the original effective date of January 1, 2025, to allow time for government agencies to develop decrees and circulars thoroughly. This would also enable local authorities to familiarize themselves with these regulations before implementing local guidelines. Others requested clarification on why the laws would take effect from August 1, 2024.

In response, the Standing Committee of the National Assembly emphasized that the 2024 Land Law, 2023 Housing Law, and 2023 Real Estate Business Law have addressed many limitations of previous versions and introduced progressive reforms expected to boost economic and social development. Additionally, many provisions can be implemented immediately without requiring further guidance.

The early enforcement of these laws is not just a desire but also a requirement set forth by the National Assembly,” the Standing Committee stated.

Debate Over Flexible Implementation

Some suggested allowing stakeholders to choose when to apply the new laws. However, the Standing Committee rejected this idea, arguing that it would lead to inconsistencies and lack of transparency in government policies. Such flexibility could result in arbitrary application of laws across different timelines, creating difficulties for businesses, individuals, and government agencies.

Concerns were also raised about the local governments’ ability to issue necessary guidelines on time. However, a government report on June 24 reassured that sufficient time remains for ministries and local authorities to finalize and issue the required regulations.

The Prime Minister has already instructed ministries and local authorities to expedite the drafting of detailed implementation guidelines for the Land Law, Housing Law, and Real Estate Business Law.

If the National Assembly approves these laws in this session, there will still be enough time to ensure quality implementation by August 1, 2024,” Chairman Vũ Hồng Thanh affirmed.

The Standing Committee of the National Assembly has urged the Government to closely oversee the issuance of implementation documents, ensuring that no legal gaps or delays occur. Ministries and local authorities must work proactively to prevent regulations from being delayed due to waiting for higher-level decrees or central government guidance.

Source: Government News (Báo Chính Phủ)