Many projects are 'shelved', National Assembly member proposes to only collect deposits when business conditions are met

Video: Opinions of National Assembly deputies on the Law on Real Estate Business (amended) on the morning of October 31. (Source: quochoi.vn)

Specifically, discussing the Law on Real Estate Business (amended) at the hall on the morning of October 31, delegate Tran Hong Nguyen (Binh Thuan delegation) expressed his agreement with the plan "Real estate project investors are only allowed to collect deposits from customers when the houses and construction works have met all the conditions for putting into business and have conducted transactions in accordance with the provisions of this Law".

According to Ms. Nguyen, this option is less risky for customers, who are the weaker party in real estate transactions, because the deposit is only made when the real estate is eligible for business and the two parties have officially signed a contract, limiting the occurrence of disputes.

Delegate Tran Hong Nguyen - National Assembly Delegation of Binh Thuan province. (Photo: quochoi.vn).

Ms. Nguyen also commented on option 2: “Real estate project investors are only allowed to collect deposits according to the agreement with customers when the project has a basic design appraised by a state agency and the investor has one of the documents on land use rights specified in Clause 2, Article 24 of this Law. The deposit agreement must clearly state the selling price, lease-purchase price of the house, construction work. The maximum deposit amount is according to Government regulations but does not exceed 10% of the selling price, lease-purchase price of the house, construction work, ensuring compliance with the socio-economic development conditions in each period, each type of real estate”.

Ms. Nguyen stated her opinion: The time to collect the deposit right from when the project has a basic design appraised by a State agency and the investor has one of the documents on land use rights as shown in option two will lead to a very long time from receiving the deposit to actually implementing the project, causing more risks for customers.

Meanwhile, the real estate market has recently had many complicated developments, with investors of real estate projects still taking advantage of deposits and capital contribution contracts to arbitrarily raise capital, causing insecurity and disorder.

" Reality shows that many projects have not been implemented after receiving deposits for 5 years, even 10 years. Therefore, delegates believe that there should be regulations to control more strictly to limit this situation from happening... ", Ms. Nguyen emphasized.

Meanwhile, delegate Nguyen Dai Thang (Hung Yen) chose option 2.

The delegate explained that this is a plan that clearly stipulates in which cases the investor is allowed to collect deposits according to the agreement with the customer; clearly stipulates the content of the deposit agreement, the deposit amount to ensure publicity, transparency, and protection of the legitimate rights and interests of organizations and individuals who have signed contracts to buy, lease, or purchase houses and construction works; and restricts real estate businesses from receiving deposits as a capital mobilization channel.

Mr. Thang also requested the drafting agency to study and consider clearly deciding on the conditions for future housing and construction works. Accordingly, the decision will only allow investors to sell future housing for construction projects that have met the conditions of having approved designs for major and essential infrastructure projects that have been completed on schedule.

At the same time, clarify the content of "requirement to complete corresponding to project progress".

On the morning of October 31, the National Assembly discussed the Law on Real Estate Business (amended). Photo: (quoc hoi.vn).

In addition, delegate Thang also suggested that the drafting agency should clearly decide on the responsibility for building, updating, managing and exploiting the database on housing and real estate market, publicly announcing information on housing and real estate market in the housing and real estate market information system; connecting, sharing, and providing information and data on housing and real estate market to agencies and organizations according to the provisions of law is the responsibility of the Ministry of Construction.

Sharing the same opinion with delegate Thang, delegate Nguyen Thi Viet Nga (Hai Duong) also supports choosing option 2.

Delegates said that such regulations will create more favorable conditions for businesses and investors to develop, especially in the context of real estate businesses facing many difficulties.

Project investment requires a large amount of capital. Allowing investors to collect deposits early will help investors have more capital to reinvest, contributing to increasing opportunities and attracting potential customers.

“ Although this regulation may pose more risks to customers, the delegate emphasized that this needs to be overcome by tightening management and enhancing the responsibility of competent state management agencies.

In particular, right from the initial stage of reviewing and selecting investors, to ensure the capacity and ability of investors to implement the project. Limiting risks like option 1 only allows real estate project investors to collect deposits when housing and construction works are qualified to be put into business will limit the opportunities of enterprises, going against the encouragement and creating mechanisms for enterprises to develop, "the delegate expressed.

Recommended deposit not to exceed 5% of sale price
Delegate Huynh Thi Phuc (National Assembly Delegation of Ba Ria - Vung Tau province) said that after consulting the Real Estate Association and conducting a survey, it was found that 5% is a reasonable deposit level according to practice.
The delegate proposed to amend Clause 5, Article 23 in the direction: " Real estate project investors are only allowed to collect deposits according to the agreement with customers when the project has a basic design appraised by a state agency and the investor has one of the documents on land use rights specified in Clause 2, Article 24 of this Law.
The deposit agreement must clearly state the rental price of the house or construction work; the maximum deposit amount is according to Government regulations but must not exceed 5% of the rental price of the house or construction work, ensuring compliance with the socio-economic development conditions in each period .

Ngoc Vy

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