Incomplete legal documents, customers suffer losses?

Projects are shelved, customers suffer losses

Taking advantage of loopholes in real estate laws, many businesses have "put the cart before the horse" by illegally raising capital and selling apartments in many projects in Ho Chi Minh City when they do not meet the conditions for future housing development.

The Lancaster Lincoln project remains closed to this day, with no construction activity.

For example, the Lancaster Lincoln project (No. 428 - 430 Nguyen Tat Thanh, Ward 18, District 4), launched in August 2017, the Lancaster Lincoln project was advertised as being built on a land area of ​​over 8,400m2, with 994 apartments and officetels. At the project experience ceremony, it was reported that 98% of the apartments had found owners.

After being put on sale, the Lancaster Lincoln project started construction. In September 2017, after an inspection, the People's Committee of Ward 18, District 4 discovered that the investor had constructed the project without a permit and issued an administrative penalty decision, forcing the construction to stop.

But the investor still did not comply and continued construction. Afterwards, the People's Committee of District 4 made a record and issued a decision to fine the investor for illegal construction. In December 2017, the Ho Chi Minh City Department of Construction issued a construction permit for phase 1, the underground part of this project.

After the underground construction, the Lancaster Lincoln project was “inactive” for a long time. According to records at the project, it has been closed for many years and there is no construction activity.

Recently, customers who signed deposit contracts and paid for apartments at the Lancaster Lincoln project said they have been waiting for more than 5 years but still have not seen the project rebuilt. Many customers agreed to receive interest rates much lower than the agreement in the contract, but Trung Thuy Real Estate Joint Stock Company (Trung Thuy Company) still did not pay as committed.

Or the City Gate 3 project is being introduced by many websites as the most luxurious apartment project in the West of Ho Chi Minh City, located in a prime location in Ward 16, District 8 and is also the largest-scale project in Ward 16 ever.

The project promises to create an apartment fever at the end of 2018, invested by Nam Bay Bay Investment Joint Stock Company (Company 577).

Up to now, this City gate 3 project has not been implemented yet.

According to the advertisement, the project has a scale of more than 7.7 hectares, including 2,201 apartments with 3 blocks of 33 floors; 34 shophouse apartments; 134 townhouses, with a total investment of 2,615 billion VND, 100% invested by Company 577.

The project is introduced with full facilities such as: kindergarten, primary school, medical station, tennis court, swimming pool, gym...

According to information from customers, through the loud advertisements of 577 Investment Joint Stock Company (Company 577) and the exclusive trading floor of this project, Nhip Cau Dia Oc Joint Stock Company, to buy project land and apartments.

City gate 3 project perspective.

Previously, at the end of 2020, Nhip Cau Dia Oc Company showed signs of starting to level the ground at the City Gate 3 Project. However, up to now, this project has not been implemented, causing customers to have to borrow money and pay bank interest to have money to hand over to the investor.

How is illegal capital mobilization handled?

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that it currently takes a long time for a project to be legally recognized and for a business to be able to sell future-formed houses. Therefore, customers should be careful with real estate transactions.

"If the project is eligible to open for sale future housing according to legal regulations, it will be on the list announced by the Department of Construction of the localities, customers will be guaranteed their rights. As for projects not on this list, buying real estate products at this place has many potential risks for customers and investors," Mr. Chau noted.

Speaking to reporters, Lawyer Do Truc Lam, Director of Lam Tri Viet Law Company Limited - Ho Chi Minh City Bar Association, said that Article 8 of the Law on Real Estate Business stipulates prohibited acts: Fraud and deception in real estate business; Illegal mobilization and appropriation of capital; use of mobilized capital from organizations and individuals and advance payments from buyers, lessees, and lessees of future real estate not for the intended purpose as committed.

Lawyer Do Truc Lam, Director of Lam Tri Viet Law Firm LLC.

Article 58 of Decree 16/2022/ND-CP stipulates that the administrative penalty is a fine of VND 800,000,000 to VND 1,000,000,000 for real estate business project investors who commit one of the following acts: Mobilizing capital in violation of regulations; Using mobilized capital from organizations, individuals or advance payments from buyers, lessees, and lessees of future real estate not for the committed purpose. And remedial measures shall be applied: Forced to return the mobilized capital not in accordance with regulations; Forced to use mobilized capital for the committed purpose.

"In case the investor illegally mobilizes capital to appropriate customers' assets, he will be considered for criminal prosecution," emphasized lawyer Lam.

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Source: https://www.nguoiduatin.vn/bai-2-phap-ly-chua-day-du-khach-hang-chiu-thiet-a635844.html