( CNN ) -- In a move that could reshape the Cuban economy , the government on Thursday announced a new law that allows for the sale of real estate . The National Assembly in August approved a plan to permit the sale of real estate , and the legislation itself officially was put on the books Wednesday . It goes into effect November 10 , the state-run newspaper Granma reported . The new law allows for the sale , exchange , donation and gifting of real estate even in cases of divorce , death , or the owner leaving the country permanently . As stated , the goal of the law is to `` eliminate prohibitions and make limitations ( to property ownership ) flexible . '' The effect of creating a housing market in the stagnant Cuban economy is uncertain . For one , the law places some limitations -- including a prohibition of the ownership of more than one residential home and one vacation home . Also , only Cuban citizens living in the country or foreigners with permanent residences in Cuba may participate in the transactions . Buyers will be required to swear under oath that they do n't own other property . Under the law , in cases where the owner permanently leaves the country , the state confiscates the home and turns it over for free to any legitimate co-owners or family . Cuba has a population of 11 million people and a housing shortage . It 's not unusual to find three or four generations crammed into a small apartment or divorced couples under the same roof . Before the law , a black market for real estate existed , where houses were swapped .
A new law in Cuba allowing some real estate sales goes into effect next week . The legislation is seen as a major reform . Owners are limited to one residential home and one vacation property .