Ba Ria-Vung Tau rectifies real estate business transactions

On July 28, the Department of Construction of Ba Ria - Vung Tau province said it had just sent a document to investors and real estate business project investors regarding the rectification of real estate transactions and business activities at real estate projects in the area.

According to the Department of Construction of Ba Ria - Vung Tau, currently in the area, there is a phenomenon that some investors and real estate business project investors have not strictly implemented the provisions of the law on construction investment and real estate business. This causes difficulties in management, potentially causing risks and dangers affecting the real estate market, the rights and legitimate interests of secondary investors, customers, and people in organizing capital mobilization, buying and selling houses, and future construction works when they do not meet the prescribed conditions.

In addition, the promotion and introduction of real estate projects are not in accordance with the nature, scale, objectives, construction planning and design of the project approved by competent authorities. The use of mobilized capital from organizations and individuals and advance payments is not for the intended purpose as committed, violating the provisions of the Law on Real Estate Business, the Law on Housing and other relevant regulations.

Real Estate - Ba Ria-Vung Tau rectifies real estate business transactions — A future housing project in Ba Ria - Vung Tau province. (Photo: ATL)

Therefore, the Department requires investors and real estate business project investors to strictly comply with current regulations during project implementation. Complete documents and procedures in accordance with regulations before starting construction.

Houses and construction works may only be handed over to customers when construction and technical and social infrastructure works have been completed according to the schedule recorded in the approved project.

In particular, it is not allowed to authorize parties participating in investment cooperation, joint ventures, associations, business cooperation or capital contributions to sign contracts for the purchase, sale, transfer or lease-purchase of real estate. It is only allowed to organize capital mobilization, open for sale, lease or lease-purchase of houses and future construction works when fully meeting the prescribed conditions.

In addition, it is strictly forbidden for investors to illegally mobilize and appropriate capital; use mobilized capital from organizations and individuals and advance payments from buyers, lessees, and lease-purchasers of future real estate for purposes other than those committed.

In case of misuse of mobilized capital or misappropriation of mobilized capital or mobilization exceeding the amount of money advanced by customers for purchase or lease-purchase of future real estate, the amount of money mobilized in violation of regulations must be returned, compensation must be paid (if causing damage) and administrative sanctions or criminal prosecution must be imposed according to the provisions of law.

The Department of Construction of Ba Ria - Vung Tau also requested that, during the implementation process, if there are any difficulties, investors and developers should synthesize and report to the department for coordination in resolving them. In cases beyond their authority, they will synthesize and report to the Provincial People's Committee for consideration and resolution according to regulations.

In the coming time, the Department of Construction of this province will continue to coordinate with departments, branches and People's Committees of districts, towns and cities to review information on real estate projects that do not meet the conditions for buying, selling and transferring. Conduct inspections and examinations of the implementation of real estate business laws to strictly handle violations.

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