Under the name of “mutually beneficial cooperation”, however, the loan contract is a “trick” that investors can easily appropriate capital; or “take advantage” of a pre-calculated “position” to oppress customers. Not only does it make customers at MB 584 “stand and sit” restlessly, but hundreds of real estate buyers who have “accidentally” signed loan contracts are also “stuck” when conflicts and disputes arise.
The second phase of the residential area and green park project in the urban area of South Thanh Hoa City is also being vigorously implemented. Photo: pV
“Deals” that put buyers at a disadvantage...
Spending more than 1 billion 800 million VND with the desire to buy a townhouse lot at the Housing and Green Park Project in the Southern Urban Area of Thanh Hoa City, Phase 2 (under MBQH 2125/QD-UBND, dated June 11, 2015 of the Provincial People's Committee Chairman) in Dong Ve Ward, Thanh Hoa City, Ms. LD, in Thanh Hoa City, only held in her hand a loan contract with the investor - Hiraku Joint Stock Company.
According to this contract, the investor is in the "upper hand" when the terms almost revolve around the interests of the enterprise and "forget" the interests of the customer. Typically, Article 1 shows the contents: loan purpose, loan term, loan interest - while the loan term is "ignored", the interest rate is "unanimously 0%/year". In Article 3 on the method of paying principal and interest, "according to" Article 1, the interest rate is of course 0%; the principal is "paid by Party B (investor) to Party A (customer) at the end of the loan term; however, "according to" Article 1, it is not known when the term is?
With the above “binding” terms, once signed on this loan contract, customers will never dare to cancel. Although “other agreements” are always there to “disguise” in these types of contracts, everyone can understand that businesses will never “compromise” to their own disadvantage and this is not a mandatory term.
Returning to the Dong Nam residential area of Dong Phat urban area (MB 584) , Quang Thanh ward (Thanh Hoa city), invested by BNB Company Limited. In the loan contracts, along with the 0% interest rate, with the terms of contract violation, the customer is always at a disadvantage, such as: If Party A (investor) is late in repaying the loan, the penalty is only 0.01% interest/day, but Party B (customer) violates the loan disbursement schedule according to the schedule, the penalty is 0.05% interest/day. If Party A unilaterally terminates the contract, it only has to pay a fine of 184 million VND; but Party B "is not allowed to unilaterally terminate the loan contract or withdraw the loan before the due date for any reason". More ironically, if Party A unilaterally terminates the contract because Party B does not disburse on schedule, Party B will be fined an amount equal to 50% of the value that Party B has disbursed.
It can be seen that these loan contracts have been carefully researched and "arranged" in the direction of optimizing the benefits of the business, pushing the risks entirely to the customer. The customer - the lender, may not read the contract carefully to detect the tricky agreements and terms; they may also be aware but still intentionally transact because their desire is to enter into a contract to have the right to buy real estate products, not for the purpose of earning interest.
From another perspective, during the booming real estate market, there were too many secondary investors participating in the market, many investors at that time were still "lining up" in long lines; even using many relationships to "put money" into projects with the desire to "surf" to make a profit, enjoy the difference, so they did not pay much attention to the later developments of the project.
... stuck when the business "flips"
Disburse all the loan amount to the investor according to the progress, along with the registration of the desire to buy each plot of land; however, the loose constraints on the investor's responsibility for this type of contract make it easy for them to "wash their hands" and abandon the interests of their customers.
At MB 584, the project has so far completed all technical infrastructure items. The enterprise has fulfilled its State budget obligations for this project since August 6, 2020 (according to Document No. 3419/CCT-TTTBBTK dated August 6, 2020 of the Thanh Hoa City - Dong Son Tax Department). On April 13, 2021, the project was also issued Notice No. 2314/SXD-QLN by the Department of Construction on the announcement of future housing eligible for sale and lease-purchase (phase 1); however, the investor still did not legalize the "promise to buy, promise to sell" agreements such as the customer's registration of wishes and converted the loan contracts into future housing sale contracts.
Many customers in this area are currently in a dilemma, if they do not build a house, the land will be sold to someone else; but if they build a house but still only own the loan contract, they cannot rest assured. "We have requested many times to change the loan contract to a sales contract, but the investor still avoids resolving the issue," Mr. LTC - a customer who bought land on MB 584 worriedly.
In another development, because the loan contract does not show specific information about the housing product, construction progress, handover..., many customers are passive and regretful when they now receive a product that does not match the function as well as the family's financial plan. And, to keep the right to buy the product, customers must "bite the bullet" and accept the regulations that the new investor "gives birth" to.
Sitting next to a 4-storey house under construction in MBQH 2125, Mr. NH, in Thanh Hoa City, sighed: "Because the land was beautiful and convenient for transportation, my wife and I researched and bought it, planning to save more money to build a house in a few years, but since last year, the company has forced households to build according to schedule. If they do not build, the company will build the rough construction according to the plan, and customers will pay the company; otherwise, the company will return the loan according to the agreement in the contract."
It is worth mentioning that the land plot that Mr. NH bought has been sold to many people, so the price is higher than the original price that the company signed the contract for. Now, if the house is not built, the company will only return the money according to the original loan agreement with 0% interest, which is a double loss. Therefore, even though they do not have enough money to build the house according to the company's schedule, the couple still has to find ways to borrow money to build the shell according to regulations, and only complete it when they have money.
However, when completing the house construction procedures, the company required Mr. NH to deposit 50 million VND to the company to supervise the construction according to the approved design, pay 20 million VND for the company to design the house, and Mr. H. also expected to spend more than 100 million VND for the completion procedures, tens of millions of VND to make the red book... However, the interior design of the house of the company was not suitable for the family's use, Mr. H. had to spend nearly 20 million VND more to hire another architect to redesign it to suit. The requirements for conditions, documents and procedures related to house completion were also quite complicated, so Mr. H. had to hire another company to do it.
According to our research and feedback from the people, there are some locations where, due to limited financial capacity, investors have deliberately prolonged the time to complete legal procedures to request the State management agency to issue certificates of house ownership and assets attached to land to customers as a "promise" when borrowing capital. In some cases, after receiving the "general book", the investor mortgaged it at the bank and could not answer about the date of completion of responsibility to the customer, even though they had collected 100% of the land plot amount, not 95% as prescribed.
Typically, at MBQH 2125, phase 1 located in Dong Ve ward, Thanh Hoa city, households built houses more than 3 years ago but up to now the investor has not completed the procedures to issue certificates of house ownership and assets attached to the land. Ms. TA, a resident here, said: “Households in the neighborhood have repeatedly requested the investor to complete the procedures to issue certificates of house ownership and assets attached to the land to the people, but for many years now they have been silent. The lack of clear legal documents on the family's land has made many households insecure, and also lost many opportunities when they want to mortgage the bank to get money to invest in production and business”.
Or in the case of Mr. Le Van H., in Thanh Hoa City, in 2020, through the form of a capital contribution contract, his family bought 240 square meters of land at the Nui Long Ecological Urban Area Project, Thanh Hoa City. In 2022, Mr. H. paid 100% of the land lot amount to the company and the company converted the capital contribution contract to a housing sale and purchase contract, but up to now, his family as well as the surrounding households have not yet had the company complete the legal procedures to request the State management agency to issue a certificate of house ownership and property attached to the land. Although the households living on this project have repeatedly written petitions to the authorities, the matter has not yet been resolved.
From the “deals” that put buyers in a “weak position” through the form of loan contracts with “weak capital” investors, hundreds of customers are in a state of “half crying, half laughing”, “standing, sitting” restlessly because of the lack of money to build houses, because of the signs of broken promises, the behavior of “reneging on the deal” of the investors. From here, many families “have no peace, no sweet soup” because they “pour” money into land, into houses, even have to pay bank loans every month.
Reporter Group
Final lesson: Understand the law, limit risks.
Source: https://baothanhhoa.vn/giao-dich-bat-dong-san-bang-hop-dong-vay-von-nguoi-mua-om-han-bai-2-hop-tac-hay-bay-huy-dong-von-217407.htm
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