The Real Estate Business Law 2023 introduces stricter regulations for managing real estate transactions, including a requirement that these transactions must be conducted through accounts at credit institutions.

Termination of Cash Transactions for Real Estate

Following Article 48 of The Real Estate Business Law 2023, payments for real estate transactions and projects must be agreed upon by the parties in the contract and comply with legal regulations. Investors, real estate businesses, and real estate service companies must receive payments for real estate business contracts or real estate service contracts from clients through accounts opened at domestic credit institutions or branches of foreign banks legally operating in Vietnam.

Previously, The Real Estate Business Law 2014 required that payments in real estate transactions be agreed upon by the parties in the contract and comply with legal payment regulations.

The new regulation mandates that project investors, real estate businesses, and real estate service companies must receive payments through bank accounts. For small-scale individual real estate businesses, establishing a company and receiving payments through a bank account are not mandatory.

The Real Estate Business Law 2023 will be effective from August 1, 2024.

This newsletter is intended to provide information about newly issued legal regulations and is not meant for specific advice or application to individual cases.

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