Apartments without pink books are being forced to lower prices

SELL NO ONE BUYS

Recently, a resident of Millennium apartment building (District 4, Ho Chi Minh City) wanted to sell her apartment because she bought the house and moved in at the end of 2018 but has not yet received the pink book. In addition, there has been a lot of information recently about the project being involved in a scandal related to public land, the project being investigated by the police and the "instability" from the investor, so she wants to sell even more. Also because of the above reasons, plus the market being frozen, she had to accept a "big discount", but still no buyers.

Many apartments are being forced to lower their prices because they do not have pink books.

This is the common situation of customers who buy apartments without being granted a pink book. In early 2019, Mr. Cong Quang bought an 88 m2 apartment in Orchard Park View apartment building (Phu Nhuan District, Ho Chi Minh City) for nearly 6 billion VND. Mr. Quang has paid 95% of the value of the apartment, but up to now it is still a deposit contract and has not been granted a pink book. Mr. Quang has advertised the apartment for sale many times from 6.5 billion to 6.1 billion VND but still no one bought it. Not only that, the apartment's rental price has also decreased from 25 million VND/month to 20 million VND to find a tenant.

"The apartment building was handed over to customers in 2018. However, due to the issue of public land, the government conducted inspections and checks, and to date, home buyers have not been granted pink books. If you buy to live here, it is very good because no one can take your house. However, the fact that the apartment does not have a pink book causes many inconveniences, worries and affects the rights of home buyers. First, when you want to sell, with the reason that there is no book, the project is under investigation, the apartment is forced to a miserable price by the buyer. Not only that, it is also very difficult to sell even though the price has dropped sharply compared to apartments with pink books in the same area. In addition, these apartments cannot be mortgaged to borrow capital from banks to do business, especially during this difficult period. Up to now, I have advertised for sale 3 times and reduced the price 2 times but have not found a buyer," said Mr. Quang.

Most apartment owners here also live in anxiety like Mr. Quang when they have not yet held the pink book in their hands and the investor is involved in many risky rumors.

In 2016, Mr. Pham Hung and his wife (living in Binh Thanh District, Ho Chi Minh City) bought a 2-bedroom apartment in an apartment project on Mai Chi Tho Street (Thu Duc City) for nearly 4 billion VND. Although they had paid 95% of the apartment value and received the house for a long time, the investor still had not notified the residents about the procedures for the pink book. Recently, the project had many violations related to public land and was being investigated by the authorities, so the issuance of pink books to residents was even more distant. Mr. Pham Hung, the residents and the investor of the apartment building sent a petition to the authorities for help but to no avail.

ISSUING LAND ROW BOOKS TO PEOPLE FIRST, DEALING WITH INVESTORS LATER

According to the Department of Natural Resources and Environment, during the process of handling the dossier, the Department received many documents from competent state agencies such as: inspectors, auditors, police... related to many housing development projects in the city with the content of requesting to provide documents to serve the inspection and investigation work. In addition, there were decisions requesting to temporarily suspend the settlement of administrative procedures on land due to reviewing the process of land allocation, transfer, capital contribution for project implementation, change of land use purpose, review of land use plan when equitizing enterprises, and re-determining financial obligations.

Currently, in Ho Chi Minh City, there are many real estate projects that have changed the purpose of land use with the origin of land allocated or leased by the State and have completed construction investment. Many projects have even sold houses, completed construction acceptance and put into use and people have moved in and settled down, but the land price has not been approved to calculate land use fees. This leads to people buying houses in these projects not being granted pink books, the State also cannot collect land use fees, taxes, fees, and businesses have increased the burden of paying bank loan interest, not to mention the complaints and lawsuits of people because they have not been granted certificates.

CUSTOMERS ARE HONEST

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, agreed with the proposal of the Department of Natural Resources and Environment because he believed that customers are honest people. In many places, customers have paid up to 95% of the apartment value. Therefore, projects with violations in investment, construction, business, and asset mortgage, but the apartments that customers buy are still in accordance with planning and design, the investor's violations should be separated to be handled according to the provisions of law and pink books should be issued to home buyers. Because in reality, as mentioned above, people who buy houses without pink books suffer losses in many ways. That is a large asset, the lifetime savings of many people, but they are living in fear when they do not have a certificate of ownership in hand, they cannot feel secure, cannot settle down and have a career.

Mr. Le Hoang Chau further analyzed: For projects that must fulfill financial obligations and pay additional land use fees (if any), this is the relationship between the project investor and the state agency, not related to the responsibilities and obligations of home buyers. It is recommended to separate and handle them separately, and also prioritize the issuance of pink books to home buyers first.

Therefore, the Department of Natural Resources and Environment of Ho Chi Minh City has issued a document asking for opinions on the issuance of pink books to home buyers in the above project. In cases where the project has been temporarily suspended due to being under trial by the court, has a blockade document from the investigation agency or a temporary suspension decision from the enforcement agency, the Department must be notified. The Department will temporarily suspend the issuance of pink books, and will handle the remaining cases.

Supporting the proposal of the Department of Natural Resources and Environment of Ho Chi Minh City, lawyer Tran Manh Cuong, Ho Chi Minh City Bar Association, proposed additional solutions to separate groups of violating apartment buildings for handling. The first is related to cases of capital mobilization by investors or illegal sales, which will be focused on handling, and if necessary, transferred to the investigation agency for handling according to legal regulations. The group related to disputes between three parties (investors, banks, home buyers), if the investor has mortgaged the project to the bank, the home buyer can file a lawsuit to protect their legitimate rights. The group of violations in construction such as: construction not in accordance with the license, incomplete technical infrastructure... The city needs to issue pink books to home buyers if the apartment meets all technical and legal conditions, and should not wait for the project to be processed before issuing them to buyers at once.

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