According to Clause 5, Article 23 of the Law on Real Estate Business 2023, real estate project investors are only allowed to collect deposits of no more than 5% of the selling price; lease-purchase of houses, construction works, and construction floor area in construction works when they have met all the conditions for putting them into business according to regulations.
Along with the regulations on deposits, Article 25 of the 2023 Law on Real Estate Business also regulates the payment for buying and selling, and leasing houses on paper. Accordingly, the parties make multiple payments and the first payment must not exceed 30% of the contract including the deposit (the old regulations do not include the deposit).
Subsequent payments must be in accordance with the construction progress but not exceeding 70% of the contract value when the house, construction work, and floor area in the construction work have not been handed over. If the seller is a foreign-invested organization, it shall not exceed 50% of the contract value. If the buyer or hire-purchaser has not been granted a red book/pink book, it shall not collect more than 95% of the contract value. The remaining value will be paid when the buyer is granted a pink book.
Deposit is the first step in the buying and selling process, carried out before signing the contract. Previously, when there were no regulations on deposits for real estate purchases, the deposit situation in the market was inconsistent, posing some potential risks. Many investors accepted deposits and agreed to reserve a place with a large amount of money. Some projects were not even qualified to sell future housing but still offered for sale, calling on customers to deposit to raise more capital.
In fact, many housing projects have collected deposits and progress payments from customers through brokerage firms or directly from the investor. However, the investor then did not implement the project or implemented it halfway and then stopped, leaving home buyers waiting.
Regulations on real estate deposits are aimed at protecting the rights of home buyers, avoiding collecting too large deposits, which may lead to fraudulent behavior causing damage to buyers. This regulation also aims to more closely control the implementation of real estate projects to limit the situation of "catching thieves with bare hands", "holding land and waiting for the right time" by investors with weak financial capacity...
From the investor’s perspective, many real estate businesses are “restless” because in reality, for many years now, most of them have been “frying themselves with their own fat”. They mobilize capital from home buyers to invest… so there are many customers who have paid 95% of the house purchase price but do not know when they will receive the house documents…
Or worse, the investor is in trouble, the customer does not know when they will receive the house! There is even a situation where the investor mobilizes capital without a deposit with a "guarantee" from the bank. That means the customer and the real estate developer invest together "to eat the profit, to bear the loss", but the "tongue" always belongs to the customer!
To gradually build a healthy real estate market, in addition to current regulations, there should be more constraints and sanctions appropriate to the reality of deposit transactions and capital mobilization to both protect the legitimate rights of customers and filter out investors who "catch thieves with bare hands".
DONG GIA
Source: https://www.sggp.org.vn/bao-ve-quyen-loi-khach-hang-post749500.html
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