In the previous article, Lao Dong Newspaper reported that, despite warnings from authorities and the press, in some real estate projects in Bac Ninh, there is still illegal capital mobilization in the form of brokerage platforms inviting people to "reserve deposits, reserve seats", "voluntarily register", "borrowing contracts" when the project does not meet business and transfer conditions.
This situation has recurred many times, causing many consequences for the local socio-economy, requiring stronger measures to prevent it.
Publicity, transparency and increased review
According to Mr. Nguyen Tuan Dung, Deputy Director of the Department of Construction of Bac Ninh province, in order to prevent the situation of "selling young rice" in real estate business, in the coming time, the Department will continue to propagate, disseminate and guide legal regulations on real estate business to organizations, individuals and people in the province.
At the same time, it is recommended that the People's Committees at the commune level and relevant agencies publicly and transparently announce information about real estate business projects (regulations, planning, progress, real estate business conditions at the project...) on the Department's and relevant agencies' Electronic Information Portal for organizations and individuals to grasp when participating in transactions.
At the same time, it will strengthen the review of real estate planning, construction and business, especially large-scale projects and projects that are behind schedule to remove difficulties and obstacles, speed up implementation stages; soon put projects into use, diversify product types, increase supply to stabilize the market.
To prevent risks, the Bac Ninh Real Estate Association recommends that investors study and carefully understand the legal nature of the project.
In addition, it is advisable to research projects of reputable investors who have had many projects implemented on schedule, handed over real estate on schedule with clear legal procedures; avoid buying projects that do not have full documents and legal procedures related to planning, land, construction, notify of eligibility for transfer or investors are using land in the project for mortgage and loan.
Grasp the legality before trading
According to lawyer Quach Thanh Luc - Director of Law Firm (Hanoi Bar Association), in the past, there have been many cases of customers suing investors for selling land projects.
Accordingly, although the investor has collected a large amount of money from customers, he has not built the project or handed over the house to the customer.
According to lawyer Quach Thanh Luc - Director of Law Firm (Hanoi Bar Association), many investors "accidentally or intentionally" violate legal regulations on buying, selling and trading real estate without a license from a competent authority, which is negatively affecting the market and pushing risks to customers.
Investors often justify that customers who buy early will get cheap, and businesses will have money to build projects.
Some customers, even though they know the project is not qualified, still accept to " get money in" early with the mentality of wanting to enjoy incentives, accidentally supporting illegal capital mobilization in the form of "deposit, reservation", "voluntary registration", "capital loan contract".
Voluntary civil agreements but have the potential risk of disputes, lawsuits, affecting security and order.
In particular, if the investor has problems with procedures, legality, capital, etc., buyers will suffer many disadvantages.
"When deciding to buy land, customers need to request the investor to provide legal documents including decisions approving projects, land allocation decisions of the State; land use right certificates; licenses on land division and sale issued by the Provincial People's Committee; approved construction drawings; documents, certificates of financial obligations; documents accepting the completion of infrastructure construction obligations of competent state agencies; detailed planning maps 1/500...", lawyer Luc advised.
Proposal to fine from 800 million - 1 billion VND
The Ministry of Construction is seeking opinions on the draft Decree on administrative sanctions for construction violations, in which some areas have been increased in sanctions.
Accordingly, investors who mobilize capital without meeting business conditions (selling "young rice") are expected to be fined the highest from 800 million to 1 billion VND.
The investor who violates will be suspended from business activities for 3 to 6 months, and must return the amount collected to the customer if required.
In case of not disclosing information on mortgaging houses, construction works, and real estate projects, a fine of 600-800 million VND will be applied.
Investors who do not publicly disclose and are inaccurate about real estate projects before selling will also be fined 300-400 million VND.
According to many experts, if approved, the proposal will help ensure residents' property rights, increase confidence in the market, and contribute to creating a healthy investment environment.
