Laws of Vietnam

I. SCOPE OF APPLICATION

This Circular guides the conditions and procedures for licensing and registration of land price consultancy activities.

II. SPECIFIC PROVISIONS

1. Contents of land price consultancy activities

1.1. Contents of land price consultancy activities

a/ Based on the principles and methods of determining land prices under the provisions of law, to provide land-price determination services at the request of organizations, households or individuals.

b/ To supply information on the state-prescribed land prices and market prices of land-use right transfer at the request of organizations, households or individuals.

c/ To supply results of analysis and forecast of fluctuations in land prices at the request of organizations, households or individuals.

1.2. Land price consultancy contracts

Enterprises providing land price consultancy services as well as organizations and individuals using such services must express their agreements and commitments in consultancy contracts according to the provisions of law.

A land price consultancy contract has the following principal contents:

a/ Names, addresses, telephone numbers, facsimile numbers and e-mail addresses of the organization providing land price consultancy services and of the user of such services (client).

b/ The request for determination of the price of land plot No. ' in map No. ' Purposes of the land price consultancy.

c/ Rights and obligations of the land price consultancy organization.

d/ Obligations and rights of the client.

e/ Land price consultancy service charges.

f/ Mode and deadline of payment.

g/ Applicable laws and ways of dispute settlement.

h/ Contract termination and responsibilities of contractual parties upon contract termination.

i/ Conditions and effect of the contract.

j/ Contract term and contract liquidation procedures.

k/ Other agreements (if any).

1.3. In specific cases where the client wishes to add other contents agreed upon by both parties, such contents shall be added to the land price consultancy contract in accordance with the provisions of law on economic contracts.

2. Principles of land price consultancy activities

Organizations carrying out land price consultancy activities shall adhere to the following principles:

2.1. Strictly observing the provisions of law on consultancy activities, price appraisal and land-price determination.

2.2. Being held responsible before law for their professional activities.

2.3. Abiding by the principles and methods of determining land prices as provided for by law.

2.4. Ensuring independence, truthfulness, objectivity and scientificity of land price consultancy activities.

2.5. To keep confidential the information received from clients that request the provision of land price consultancy services in the course of providing consultancy services, unless otherwise consented by the clients or provided for by law.

3. Conditions for land price consultancy activities

3.1. Price appraisal enterprises of all types and enterprises with the price-appraisal function, which have been set up and engaged in price appraisal activities under the provisions of law, are qualified to carry out land price consultancy activities.

Foreign price-appraisal organizations which have set up their branches in Vietnam to carry out price appraisal activities under the provisions of the Commercial Law, other relevant provisions of law or the Finance Ministry's regulations, shall be allowed to carry out land price consultancy activities.

Foreign price-appraisal organizations which have not yet set up their branches in Vietnam but are licensed to conduct price appraisal in Vietnam according to the provisions of Vietnamese law on price appraisal shall be allowed to carry out land price consultancy activities.

3.2. For enterprises set up and licensed to operate in the field of real estate consultancy or real estate business and brokerage under the provisions of law on enterprises, if wishing to carry out land price consultancy activities, they must fully meet the following conditions:

- Having three or more price appraisers who possess valid price appraiser's cards, one of whom is the enterprise's representative at law.

Owners of private price-appraisal enterprises must be price appraisers who possess price appraiser's cards; a price appraiser may be the owner of only one private price-appraisal enterprise.

Partners of price appraisal partnerships must be price appraisers who possess price appraiser's cards; a price appraiser who possesses a price appraiser's card may be a partner of only one price appraisal partnership.

- Having registered for the provision of land price consultancy services with a competent business registration office, which permits the addition of the land price consultancy function to the business registration certificates.

4. Procedures for licensing and registration of land price consultancy activities

4.1. Licensing conditions

Enterprises engaged in real estate consultancy or real estate business and brokerage, which fully meet the conditions set at Item 3.2, Point 3, Section II of this Circular and file dossiers of registration for land price consultancy activities, shall be considered for the addition of the function of price appraisal to their business registration certificates so that they can carry out land price consultancy activities.

Price appraisal enterprises and enterprises with the price appraisal function (including foreign price-appraisal organizations) defined at Item 3.1, Point 3, Section II of this Circular, which have been set up under the provisions of law and granted the price appraisal service permits or registration certificates, shall not have to register for land price consultancy activities.

4.2. Licensing order

The order of registration for land price consultancy activities shall comply with the provisions of law on enterprises.

Within 30 days after being granted the business registration certificates, enterprises engaged in land price consultancy activities shall send to the Finance Ministry (the Price Management Department) a notice thereon, enclosed with (notarized) copies of the following documents: business registration certificate, enterprise establishment decision and the list of registered appraisers at the enterprises.

5. Dossiers of registration for land price consultancy activities

5.1. Real estate consultancy or real estate business and brokerage enterprises which wish to carry out land price consultancy activities shall have to submit business registration dossiers to competent business registration offices, requesting the addition of the price appraisal function to their business registration certificates.

5.2. Business registration dossiers shall be compiled in accordance with the provisions of law on enterprises and each comprises the following:

- An application for business registration (covering land price consultancy activities), made according to a form set by a competent business registration office under the provisions of law on enterprises.

- A list of registered price appraisers at the enterprise and (notarized) copies of their valid price-appraiser's cards.

- (Notarized) copies of labor contracts signed between the enterprise and price appraisers or decisions on recruitment of price appraisers.

6. Rights of enterprises engaged in land price consultancy activities

- To negotiate and sign land price consultancy contracts.

- To request organizations or individuals having signed land price consultancy contracts to supply information and documents necessary for the performance of such contracts.

- To collect land price consultancy service charges as agreed upon in the consultancy contracts.

- To cancel, or unilaterally stop the performance of, consultancy contracts, and claim damages in case land-price consultancy service users breach the obligations committed in the consultancy contracts.

- To hire experts for the performance of land price consultancy contracts.

- To participate in domestic and international professional associations.

- To have other rights as provided for by law.

7. Responsibilities of enterprises engaged in land price consultancy activities

- To observe the principles of land price consultancy activities.

- To fulfill the obligations committed in land price consultancy contracts.

- To pay damages to land price consultancy service users if they breach the obligations committed in the consultancy contracts. The payment of damages shall comply with the provisions of law.

- To purchase professional liability insurance according to current provisions of law on insurance for price-appraisal professional liability.

- To manage professional activities of price appraisers working for enterprises; to report to the Finance Ministry (the Price Management Department) on the number and names of registered price-appraisers at the enterprises. To promptly report on any changes in price appraisers or violations committed by price appraisers at the enterprises.

- To fulfill financial obligations according to the provisions of law.

- To perform other obligations according to the provisions of law.

8. Conditions for individuals practicing land price consultancy

Individuals practicing land price consultancy must be price appraisers possessing price appraiser's cards granted by the Finance Ministry (foreign price appraisers must possess certificates of practice granted by competent foreign organizations accredited by the Vietnamese Finance Ministry), have registered for practicing price appraisal and are working at organizations or enterprises licensed to carry out land price consultancy activities.

Price appraisers' registration for practicing price appraisal shall comply with the provisions of the Finance Ministry's Circular No. 17/2006/TT-BTC of March 13, 2006, guiding the implementation of the Government's Decree No. 101/2005/ND-CP of August 3, 2005, on price appraisal.

Price appraisers practicing land price consultancy must strictly abide by current provisions of law on practicing conditions, rights and obligations, and professional ethics of price appraisers.

III. ORGANIZATION OF IMPLEMENTATION

1. This Circular takes effect 15 days after its publication in "CONG BAO."

2. Concerned ministries and branches, the Price Management Department of the Finance Ministry and provincial/municipal People's Committees shall have to direct concerned provincial/municipal Services and branches in guiding land price consultancy organizations to implement this Circular.

3. The state management of land price consultancy and the handling of disputes over land price consultancy shall comply with Articles 21 and 22, Chapter IV "State management of price appraisal" and Article 23, Chapter V "Handling of disputes over price appraisal" of the Government's Decree No. 101/2005/ND-CP of August 3, 2005, on price appraisal.

Any problems arising in the course of implementation of the Circular should be reported to the Finance Ministry for guidance and settlement.