Ho Chi Minh City Department of Construction speaks out about "ghost" real estate scams

Specifically, Mr. Huynh Thanh Khiet, Deputy Director of the Department of Construction of Ho Chi Minh City, said that in previous years, especially in 2019, "virtual" real estate projects flourished in Ho Chi Minh City, meaning that from a vacant public land or one that already had an owner, some businesses, individuals doing real estate business, brokers... "set up" real estate projects (ghost projects) to solicit, trade, and mobilize capital from people who want to buy land or houses in the future. Localities such as Dong Nai, Ba Ria - Vung Tau, Binh Thuan, Ninh Thuan, Can Tho... also have a similar situation.

Dong Nai Provincial Police caught Loc Phuc Company red-handed opening a "ghost" real estate trading floor on a vacant lot in An Vien Commune, Trang Bom District at the end of August 2023.

After the epidemic, this situation has now recurred and is called "ghost" real estate but more sophisticated, by introducing a property with a very cheap price, a very good location, a very beautiful house, but when contacted, the apartment has been sold and the buyer is led to refer to another property, another project or another land to introduce, embellish, and invite to buy and sell.

It is worth mentioning that the initial "real estate" and "other real estate" are not real or have owners but there is no need to buy or sell, so they are called "ghosts". By creating "virtual" or "ghost" real estate to attract customers, then requesting deposits, advances, payments... and then not performing, absconding... is an act of fraud and property appropriation.

Therefore, law enforcement agencies have stepped in, typically the case of Alibaba Real Estate Joint Stock Company was recently brought to trial at the Ho Chi Minh City People's Court for fraud, appropriation of property, and money laundering. Or recently, Dong Nai Provincial Police initiated a case of Loc Phuc Real Estate Company establishing a "ghost" project on agricultural land to defraud and appropriate customers' property.

According to the Deputy Director of the Ho Chi Minh City Department of Construction, in reality, some companies register to establish businesses in Ho Chi Minh City but create "virtual" or "ghost" real estate projects in other localities or vice versa. This is to avoid inspection and examination, such as the case of Loc Phuc Real Estate Company, which established a business in Ho Chi Minh City, carried out fraudulent projects in Dong Nai and Dong Nai Provincial Police intervened to crack down.

"For people who want to buy real estate products, before deciding to make a transaction, above all, they need to be careful and carefully research legal information related to the land and project, which is indirectly verified through the Electronic Information Portal, specialized Apps of specialized departments, branches, districts; At the same time, they can verify directly by contacting the ward, commune, and locality where the land and project are located to avoid being scammed" - the Deputy Director of the Ho Chi Minh City Department of Construction noted.

Source: https://nld.com.vn/kinh-te/so-xay-dung-tp-hcm-len-tieng-ve-cac-chieu-tro-lua-dao-bat-dong-san-ma-2023101710150277.htm