On the morning of November 28, 2023, the National Assembly officially passed the amended and supplemented Real Estate Business Law 2023. This law provides detailed regulations on the issue of deposits in real estate business and construction projects, effective from January 1, 2025.

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The amended and supplemented Real Estate Business Law 2023 stipulates that project investors are only allowed to collect a deposit of up to 5% of the selling or leasing price from customers when the houses or construction projects meet all the conditions for business operations as prescribed by this law. When agreeing on the deposit, the selling or leasing price of the houses or construction projects must be clearly stated.

According to some experts’ opinions: the Real Estate Business Law has very strict regulations on the timing and amount of deposits collected by project investors. However, in cases where project investors do not use the term “deposit” but enter into agreements under any other form, the effectiveness of these regulations has not been fully addressed.

* This news is for informational purposes regarding newly enacted legal regulations and is not intended for specific case consultation or application.

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