Venezuela Assembly Approves Law to Boost Housing Construction Post-Earthquakes

Venezuela's National Assembly has enacted a significant legal reform aimed at stimulating housing construction and providing enhanced protections for participants in real estate ventures. This new legislation, rebranded as the Law for the Promotion and Protection of Housing Construction, replaces the previous Law Against Real Estate Fraud.

Spearheaded by National Assembly President Jorge Rodríguez, the reform introduces a comprehensive framework of 40 articles. These provisions govern sales contracts, outline the obligations of construction companies, and establish oversight mechanisms under the purview of the Ministry of Housing and Habitat. Key measures include requirements for developers to set up trusts and specify property characteristics and construction timelines in contracts.

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We have profoundly modified the formerly called Law Against Real Estate Fraud and have turned it into a new law, it is the Law for the Promotion and Protection of Housing Construction.

Rodríguez emphasized that the law's objective is to expedite access to housing for buyers, particularly in the wake of recent earthquakes that have created a pressing need for reconstruction. The legislation also introduces financial penalties for non-compliance, with fines potentially reaching up to 54,000 times the value of Venezuela's highest-valued currency.

The reform comes as the government addresses the housing needs of families displaced by the magnitude 7.2 and 7.5 earthquakes on June 24. Authorities estimate a need for approximately 25,000 new homes for those affected. A biometric census is underway in temporary camps to refine housing requirement figures. The state of La Guaira was the most severely impacted by the tremors, which resulted in thousands of fatalities and tens of thousands of displaced individuals.

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We have to facilitate that the buyers can access quickly to the houses.