Vietnam proposes clearer disclosure rules for real estate projects

Vietnam's Institute of Prosecutorial Science has proposed clearer regulations for disclosing information about real estate projects, particularly concerning disputes and mortgages. The suggestion, made during a workshop on draft laws for land, real estate business, and housing, aims to enhance transparency for the public.

Representing the Institute, Nguyễn Thị Bảo Trân highlighted that the current draft law specifies categories of information to be disclosed, such as legal and planning details, ownership restrictions, disputes, mortgages, and contract templates. However, the specific content is left to the government to define. Trân pointed out the ambiguity surrounding "information about disputes and mortgages," questioning whether all complaints or only those officially accepted by authorities must be disclosed, and whether mortgages apply to the entire project or individual units.

The Institute recommends including a minimum list of information to be publicly disclosed directly in the law. This list should be accompanied by verifiable documents or electronic data, clearly indicating the update time, the updater, and the validity status. Furthermore, the Institute proposed adding responsibilities for timely information updates and compensation for damages caused by incomplete, incorrect, or delayed information.

Additionally, the Institute suggested modifications to conditions for project transfers and lease agreements. For project transfers, they proposed that a project under mortgage does not necessarily require full release if the transferee and the mortgagee bank provide written consent. This, they argue, aligns with Vietnam's Civil Code and Housing Law, and reflects practical asset handling.

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The current regulation has not clarified the scope of the phrase "information about disputes and mortgages." For example, must the investor disclose all complaints and reflections, or only disputes that have been accepted by a competent authority? For mortgaged assets, must the entire project be disclosed, or up to each apartment, building, or land use right?