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    June, 2024

    What is Real Estate? Some Things to Note in Real Estate Regulations

    Real estate has always been one of the most closely watched sectors due to its economic value and development potential. However, to participate in this market, it is crucial to thoroughly understand the relevant legal regulations. The following article by SkyWorld will help you better understand the concept of “what is real estate” and some important regulations to consider when entering this field.

    What is Real Estate?

    “What is real estate?” is a question that many people ask when they begin to explore this field. According to the Vietnamese Civil Code, real estate includes land, houses, structures attached to land, and other assets fixed to the land. The main characteristic of real estate is that it cannot be moved, which distinguishes it entirely from movable property such as cars, machinery, or equipment. The Civil Code of 2015 does not provide a specific definition of real estate but lists the assets that are considered real estate, including:

    • Land;
    • Houses and constructions attached to the land;
    • Other assets attached to the land, houses, and constructions;
    • Other assets as prescribed by law.

    (Clause 1, Article 107, Civil Code 2015)

    Real estate plays an important role in each country's home economy

    Real estate plays an important role in each country’s home economy

    It can be seen that real estate plays an important role in the economy of any country. Not only does it provide places to live and work, but real estate is also a valuable asset that can generate profits through rental or investment. Moreover, the value of real estate tends to increase over time, especially in developing areas. Investment, purchase, rental, and other activities related to real estate must comply with legal regulations and business ethics.

    Some Important Regulations in Real Estate

    After understanding the basic information about what real estate is, we will continue to explore the essential points in the real estate market. When participating in this market, it is crucial to grasp the regulations and considerations involved. Here are some important regulations to keep in mind when entering the real estate field:

    Adjacent Boundaries Between Real Estates

    Participating in the real estate market requires a thorough understanding of legal regulations to avoid legal risks and protect your rights. These regulations include transactions, transfers, boundary determinations, and reasonable use of assets. Here are some key regulations to note when dealing with real estate:

    The boundaries between adjacent real estates are determined based on agreements between the parties or by decision of the competent state authority. In some cases, boundaries can also be determined by custom or based on boundaries that have existed for 30 years or more without dispute. Encroachment, alteration of boundary markers, even when the boundary is a canal, ditch, trench, or field edge, is strictly prohibited. All parties must respect and maintain these common boundaries.

    Land users have the right to use the space and underground area vertically from the boundaries of their land parcel in accordance with the law and must not affect the land use of others. They are only allowed to plant trees and perform other activities within the premises of their own land. If tree roots or branches exceed the defined boundaries, the land user must trim the roots and branches that extend beyond, unless otherwise agreed between the parties (Article 175 of the Civil Code 2015).

    Boundary Markers Between Real Estates

    Owners of real estate are only permitted to erect boundary markers, fences, plant trees, and build dividing walls on the land they own. Adjacent real estate owners can agree to erect boundary markers, fences, plant trees, and build dividing walls on the boundary line to serve as boundary markers between their properties; these boundary markers will be jointly owned by the involved parties.

    If the boundary marker is created by one party on the boundary line and agreed upon by the adjacent property owner, it becomes jointly owned, and the construction costs will be borne by the party that created it, unless there is another agreement. If the adjacent property owner does not agree for a legitimate reason, the owner who erected the boundary marker, fence, planted trees, or built the dividing wall must remove these constructions.

    See more: Do I Need a Visa to Go to Malaysia? 5 Notes When Importing and Exporting

    When it comes to boundary markers that are common walls between houses, the owner of adjacent real estate is not allowed to open windows, air vents or perforate walls to install construction structures, unless the owner’s consent is obtained. Owns adjacent real estate. In the case of private houses with walls close together, the owner is only allowed to cut through walls and install construction structures within the boundaries of their walls. For trees that are common boundary markers, both parties have the obligation to protect and the profits from the trees will be divided equally, unless otherwise agreed (Article 176 of the 2015 Civil Code).

    It is extremely important to thoroughly learn about real estate regulations

    It is extremely important to thoroughly learn about real estate regulations

    Opening Windows Facing Adjacent Properties

    Homeowners are only permitted to install doors and windows facing adjacent houses, opposite houses, and common pathways in accordance with the legal regulations on construction. Adhering to these regulations ensures that constructions do not infringe upon the rights and privacy of neighboring property owners while maintaining safety and construction order.

    Additionally, according to Article 178 of the Civil Code 2015, the underside of the awning above doors and windows facing common pathways must be at least 2.5 meters above ground level. This regulation ensures that structures do not obstruct or pose a danger to pedestrians and vehicles, while also preserving urban aesthetics. Adhering to this distance is essential for ensuring convenience and safety for the community (Article 178 of the Civil Code 2015).

    The above article has provided a clearer understanding of what real estate is and the relevant regulations in the real estate sector. Understanding this information helps you avoid legal risks and facilitates smooth transactions and investments in this field. Always stay updated and comply with legal regulations to safeguard your rights and obligations when participating in the real estate market. If you have any further questions related to real estate, you can contact SkyWorld for assistance!

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