The short answer: no. When a project does not yet have a construction permit (where one is mandatory), the developer may not collect deposits from customers. Collecting deposits in this situation is a prohibited act and is punished very severely.
1. Deposits may only be collected once eligible for sale
Clause 5, Article 23 of the 2023 Law on Real Estate Business (No. 29/2023/QH15, effective 01/8/2024) provides that a project developer may only collect deposits when the houses or construction works have met all conditions for being put on the market under this Law, and the amount collected must be no more than 5% of the sale price.
Point a, Clause 3, Article 24 lists the market-entry conditions, under which a construction permit is mandatory for works subject to permitting. Without a construction permit, the project has not met the conditions for market entry — and therefore deposits may not be collected.
2. Improper deposit collection is a prohibited act
Article 8 of the 2023 Law on Real Estate Business lists prohibited acts in real estate business, including collecting deposits in violation of regulations. In other words, “pre-sales”, “seat reservations”, and “good-faith deposits” before a project is legally qualified may all be treated as violations.
3. Sanctions: VND 400–600 million fines plus suspension
Under Article 58 of Decree 16/2022/ND-CP, improperly mobilizing capital or collecting deposits is administratively sanctioned:
- Fines of VND 400–600 million;
- Additional sanction: suspension of real estate business operations for 3 to 6 months;
- Remedial measure: mandatory refund of all improperly collected amounts.
4. What about works exempt from construction permits?
Construction Law No. 135/2025/QH15 (effective 01/7/2026) has expanded the cases exempt from construction permits. For exempt works, the corresponding condition under point b, Clause 3, Article 24 of the 2023 Law on Real Estate Business is the construction commencement notice as prescribed by construction law — not “no conditions at all”. Developers must still satisfy all remaining market-entry conditions before collecting deposits.
5. How buyers can protect themselves
- Check the projects construction permit (certified copy) before placing any deposit.
- Check the other market-entry conditions: land use rights, financial obligations, written confirmation of eligibility for sale.
- Deposit no more than 5% of the sale price and require the deposit contract to state refund conditions if the project cannot proceed.
- Be wary of “reservations”, “good-faith deposits”, or “investment cooperation contracts” — in substance they are still pre-qualification money collection.
Frequently asked questions
The developer says “the permit is being processed — place a deposit now to hold your unit.” Is that allowed?
No. The law has no concept of “holding a unit with a deposit” before eligibility. Any collection before all market-entry conditions are met risks being treated as unlawful money collection.
I already placed a deposit on a project without a construction permit — how do I get it back?
Buyers may demand a refund from the developer since the collection violated regulations; if the developer does not cooperate, they may complain to the Department of Construction or sue in court.
Legal bases
- Article 8; Clause 5, Article 23; Clause 3, Article 24 of the 2023 Law on Real Estate Business (No. 29/2023/QH15, effective 01/8/2024).
- Article 58 of Decree 16/2022/ND-CP (sanctions).
- Construction Law No. 135/2025/QH15 (effective 01/7/2026) — expanded permit exemptions; for exempt works the condition is the commencement notice.
Need legal due diligence on a real estate project before committing funds, or help resolving a deposit dispute? Reach FLAT Law Firm via the Contact page.
The information above is for reference only and does not constitute legal advice.
Transparency note: This article was drafted by FLAT Law Firms AI content production system and reviewed by the internal review board (AI Legal Council QA). It has not been reviewed by a human lawyer.
