Many times fined
On March 22, news from the People's Committee of Binh Dinh province said that it had just issued a decision to administratively sanction Do Thanh Real Estate Development Investment Joint Stock Company (Do Thanh Company), the fine is 500 million VND.
The I-Tower Quy Nhon Trade Center and Apartment Project has been fined many times.
Specifically, Do Thanh Company is the investor of the I-Tower Quy Nhon Service and Apartment Center project (I-Tower Quy Nhon project). This project is located on Le Duan Street, Ly Thuong Kiet Ward (Quy Nhon City, Binh Dinh Province).
During the project implementation, Do Thanh Company committed the violation of collecting money from buyers and lessees of future real estate exceeding the percentage of the contract value.
Specifically, this company collected money for the first time exceeding 30% of the contract value of 1 contract. Along with that, it collected money exceeding 70% of the contract value when the house and construction works had not been handed over to customers of 16 contracts.
In the decision, the People's Committee of Binh Dinh province forced Do Thanh Company to collect money from buyers and lessees of future real estate according to the project schedule or to return to the buyer the excess contract value in accordance with the law.
The above enterprise must strictly comply with this penalty decision. If the company fails to voluntarily comply within the time limit, it will be forced to comply according to the provisions of law.
This is not the first time Do Thanh Company has been fined. In March 2021, also at this project, the Inspectorate of the Department of Construction of Binh Dinh province issued a decision to administratively fine Do Thanh 40 million VND for organizing the construction of the I-Tower Quy Nhon project without a construction permit.
The I-Tower Quy Nhon project is built on land plot No. 299, map sheet No. 28, Le Duan Street, Ly Thuong Kiet Ward, Quy Nhon City, with an area of approximately 10,748m2. This project consists of 2 towers, 36 floors (563 apartments) and 41 floors (778 apartments). The project is expected to be completed and put into operation in the third quarter of 2022.
At the end of January 2021, the Department of Construction of Binh Dinh province recommended that people who want to invest in and buy future housing at the I - Tower Quy Nhon project should be careful before making transactions to avoid risks and civil disputes later.
The investor is not allowed to collect more than 95% of the contract value if the certificate has not been issued.
The National Assembly has just passed the revised Law on Real Estate Business, which includes new regulations on deposits and payments for future housing purchases (on paper).
Penalty document issued by Binh Dinh Provincial People's Committee.
Specifically, the law stipulates that real estate project investors are only allowed to collect deposits of no more than 5% of the selling or lease-purchase price from customers when the house or construction project has met all conditions to be put into business.
The deposit agreement must clearly state the sale price, lease-purchase price of the house, construction work, and the floor area of the construction work.
Regulations on deposits have not been specified in the current law. According to the report on acceptance and adjustment of the National Assembly Standing Committee, the regulation on the deposit level of 5% is to ensure the true nature of the deposit, while limiting risks for the buyer and hire-purchaser, who are often the weaker party in real estate business activities.
For the form of payment in the purchase and sale of houses on paper, the payment method remains the same as the current law. Accordingly, if the buyer or the lessee has not been granted a certificate of land use rights or ownership of assets attached to the land in accordance with the provisions of the law on land, the seller or the lessor may not collect more than 95% of the contract value.
The remaining value of the contract is paid when the competent state agency has issued a certificate of land use rights and ownership of assets attached to the land in accordance with the provisions of the law on land to the buyer or hire-purchaser.
According to some experts, compared to the current law, the Law on Real Estate Business recently passed by the National Assembly has added payment regulations for the form of renting and purchasing houses on paper.
Accordingly, until the house is handed over, the customer only pays 50% of the value of the house or leased building. The remaining amount is calculated as monthly rent to be paid to the lessor within a certain period.
Also according to the newly passed law, individuals doing small-scale real estate business do not have to establish a business but can instead declare and pay taxes.
This helps eliminate complexity and the possibility of negative consequences and tax evasion. However, the National Assembly Standing Committee also proposed that the Government provide detailed regulations to ensure feasibility and transparency.
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