What does Dat Xanh say about canceling contracts for hundreds of Gem Riverside project customers?

Six years after signing preliminary contracts regarding the right to purchase apartments under construction at the Gem Riverside project, more than 300 customers had their contracts unilaterally terminated by the developer, Dat Xanh.

Dat Xanh unilaterally canceled agreements with 300 homebuyers at the Gem Riverside project and plans to upgrade the project from mid-range to high-end.

Recently, more than 300 customers who purchased apartments in the Gem Riverside project (Thu Duc City, Ho Chi Minh City) have complained about the developer unilaterally canceling the preliminary contract guaranteeing the right to purchase future apartments in the Gem Riverside project after 6 years of customers paying the company.

Dat Xanh unilaterally terminated agreements with 300 customers.

Responding to Tuoi Tre Online on the evening of October 25th, Dat Xanh Group Joint Stock Company (the investor of the Gem Riverside project) confirmed that it had announced the termination of the preliminary contract for the Gem Riverside project with all previous agreements due to "no longer being in accordance with current legal regulations".

Specifically, Dat Xanh explained that "the products under the project are still not eligible for business operation according to the 2023 Real Estate Business Law."

According to Dat Xanh, the previous practice of developers offering products for sale through "preliminary contracts guaranteeing the right to purchase apartments under construction" with customers is no longer appropriate or compliant with current laws as of the effective date of the 2023 Real Estate Business Law.

With over 300 customers already involved in the project, Dat Xanh Group has offered two options for handling the situation. If a customer wishes to receive back the payment deposit stipulated in the agreement to terminate the "consulting agreement," they will be reimbursed 100% of the deposit.

At the same time, if the customer signs the settlement agreement before November 1, 2024, they will receive an additional interest rate of 15% per year on the entrusted payment amount, calculated from the date the customer signs the preliminary contract until October 31, 2024.

If the customer signs the termination agreement from November 1, 2024, they will receive interest at 10% per year, calculated from the date the customer signs the preliminary contract until the date the investor issues the first notice of termination of the preliminary contract.

Under option 2, if the customer wishes to continue purchasing the project, both parties will sign a preliminary contract termination agreement. Simultaneously, the customer will receive an additional 15% discount voucher on the product value when the project is ready for sale.

Initially, we started with a mid-range project, but now we want to develop it into a high-end one.

The area designated for the Gem Riverside project (highlighted in yellow) remains an empty plot of land to this day - Photo: NGOC HIEN

According to a representative from Dat Xanh, as of October 25th, more than 100 customers had agreed to terminate their contracts and receive 100% of the amount paid plus interest at 15% per year.

Due to the long timeframe, customers are still in the process of choosing their options. Currently, some customers have decided to continue with the project, and the developer is offering a 15% discount on the new selling price (when the project is ready for business) through a 15% discount voucher.

According to this source, six years ago, when the project was launched, it belonged to the mid-range segment, but now its structure has changed to match the surrounding infrastructure, moving towards a high-end model.

The Gem Riverside project is located in the Nam Rach Chiec residential area in An Phu ward (Thu Duc City), adjacent to the An Phu roundabout, near the parallel axis of the Ho Chi Minh City - Long Thanh - Dau Giay expressway; it comprises 12 blocks of 32-34 floors with more than 3,175 apartments.

In 2018, Dat Xanh Group, through a company, allowed customers to place deposits to reserve units using a "real estate consulting agreement" contract (approximately 250 million VND/unit), but this was later halted by authorities and has remained dormant until now.

At the time of its launch, the average price of an apartment was 30 million VND/m². Currently, prices of neighboring projects to Gem Riverside are around 100 million VND/m², so financial institutions predict the new selling price of Gem Riverside will be at least 85 million VND.

Regarding the construction progress, a representative from Dat Xanh Group stated that the Gem Riverside project has obtained a construction permit and is continuing with the necessary legal procedures to qualify for sales. The representative declined to comment on when the apartments would be available for sale again, stating that it depends on the progress of the relevant government agencies.

Source: https://tuoitre.vn/huy-hop-dong-cua-hang-tram-khach-hang-du-an-gem-riverside-dat-xanh-noi-gi-202410252314461.htm