Real estate trading: investors have to wait for … regulations (01/10)
06/08/2010 - 98 Lượt xem
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Ministry also waits for regulations Chu Van Chung, Head of the Legal Department under the Ministry of Construction, said that the completed draft decree guiding the implementation of the Real Estate Law was submitted to the government in November 2006. The draft decree said that real estate firms must have the legal capital of VND6bil ($375,000), while cooperatives must have VND4bil ($250,000). The certificate for brokerage practice will only be required in early 2009. |
Many investors want to set up businesses at this moment as the real estate market has been warming up since mid 2006, promising profitable trading deals.
The director of a real estate trading firm said that the two waves of ‘land price fever’, in which the land price increased sharply by 50-100%, have brought fat profit to traders. Meanwhile, the demand for office leasing is also very high.
According to the HCM City Planning and Investment Department, the department granted business registration certificates to 239 real estate firms every month in 2006, while the figure rose to 263 in 2007. The number of real estate trading firms accounted for a large proportion of the newly registered businesses.
… have to wait for regulations
The Real Estate Law that went into effect on January 1, 2007 stipulates that the institutions and individuals who provide brokerage services must have certificate for brokerage practice. The law also stipulates that real estate trading firms all must have legal capital. However, how much legal capital the firms must have and which agencies grant the certificate for brokerage practice remain unanswered questions.
The lack of legal documents guiding the implementation of the Real Estate Law has forced the HCM City Planning and Investment Department to halt granting business registration certificates.
In fact, the Ministry of Planning and Investment has told the HCM City department to resume granting certificates to investors, provided that the investors sign written commitments that they will meet the requirements on the establishment and operation of real estate firms to be stipulated in legal documents.
However, an official from the HCM City department said that it was very difficult to follow the instruction.
Meanwhile, investors are getting angry as they are being told to wait for some more time, saying that they are missing golden business opportunities due to the delay in granting business registration certificates.
Source: Tuoi tre.
