What does the Ministry of Construction say about real estate investors illegally raising capital from home buyers?

The Ministry of Construction received a question from National Assembly Delegate Nguyen Thi Le (National Assembly Delegation of Ho Chi Minh City) about the current situation where investors illegally mobilize capital from home buyers without completing the prescribed procedures, or after completing the project (handing over the apartment to the buyer for use) the investor has not released the bank loan for investment and construction of the project before, leading to home buyers not being granted a certificate of ownership of the house and other assets attached to the land.

There is currently a situation where investors illegally mobilize capital from home buyers without completing the required procedures - Illustrative photo

The delegate asked, "So, what measures have the Minister and the Ministry of Construction taken (including administrative and criminal measures) to limit violations by project investors? And in the coming period of preparing to amend the Housing Law, are there any proposals for strict regulations in controlling and handling violations so that investors cannot or dare not make mistakes?"

Responding to this content, the Ministry of Construction said that the real estate market has developed strongly in recent times, contributing to promoting the country's socio-economic development, meeting the needs of businesses and people. However, the market has also revealed some shortcomings and problems, including the one mentioned by the delegate. This leads to difficulties in completing procedures and not being able to hand over the Certificate of house ownership and land use rights to buyers.

Regarding solutions, along with immediate solutions, the Ministry of Construction has developed and submitted to the Prime Minister for promulgation Directive No. 13/CT-TTg dated August 29, 2022 on a number of solutions to promote the safe, healthy and sustainable development of the real estate market; in which the Prime Minister requested to strengthen inspection, examination and auditing to remove obstacles, handle violations to protect the market, protect people's assets, not legalize violations, and at the same time objectively assess, determine the causes, and have a mechanism to remove practical obstacles.

Currently, the Ministry of Construction is presiding over the drafting of the revised and supplemented Housing Law and the revised and supplemented Real Estate Business Law. The drafts of the revised and supplemented Laws mentioned above have focused on building a system of regulations to provide synchronous and comprehensive regulations between creating mechanisms and favorable conditions while also ensuring strict management and supervision of compliance with legal regulations in capital mobilization and use of mobilized capital by real estate project investors; regulations on forms of capital mobilization and management of capital mobilization use by real estate project investors.

Regulations on the application of security measures in transactions of buying and selling real estate formed in the future; strict and practical regulations on the conditions of real estate put into business.

Regulate the responsibilities of project investors, sellers, lessors, and real estate leasers in complying with the law, ensuring the rights of customers; responsibilities in applying, signing, and implementing real estate business contracts in accordance with the law.

Regulations to improve conditions, responsibilities, and capacity of organizations and individuals operating and practicing real estate brokerage...

According to the Ministry of Construction, there are many reasons for investors circumventing the law to mobilize capital when they do not meet legal requirements, including some direct causes such as: current laws are not yet complete and consistent to ensure thorough prevention of acts of circumventing the law to mobilize capital in real estate transactions; the capacity of real estate project investors has not been well screened; legal knowledge and compliance with the law of real estate business organizations and individuals are not high, with a mentality of chasing profits; information about the real estate market is not yet transparent; inspection, examination, dissemination of laws, and supervision of compliance with legal regulations in real estate business activities have not yet met the requirements of real estate market management.

Source: https://nld.com.vn/kinh-te/bo-xay-dung-noi-gi-ve-viec-chu-dau-tu-huy-dong-von-trai-phep-tu-nguoi-mua-nha-20230211142852093.htm