Land Law 2024: Key Changes Every Homebuyer Must Know

The Land Law 2024 (effective January 1, 2025) is considered the most significant legal reform in the real estate sector in over a decade. The new legislation replaces the Land Law 2013 with fundamental revisions, expected to improve market transparency, curb speculation, and strengthen buyer protections.

One of the most consequential changes is the new land valuation mechanism. The law requires land prices to closely reflect market values and be updated annually, replacing the previous practice of provincial People's Committees issuing land price schedules on 5-year cycles. This directly affects financial obligations related to land, including transfer taxes, land use fees, and compensation for site clearance.

The new law also significantly expands land-use rights, allowing mortgaging of land-use rights with foreign credit institutions operating in Vietnam — previously restricted. Additionally, regulations on capital contribution, assignment, and inheritance of land-use rights have been clarified and streamlined, reducing administrative burden for citizens.

For homebuyers, the law tightens conditions for developers when raising capital from customers. Developers may only sign reservation contracts after a project has met all legal prerequisites, curbing the widespread practice of preselling before legal completion. Buyers should require developers to provide complete legal documentation before signing any agreement.