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This article will provide you with basic information about the current land law as well as the issues surrounding the capital contribution of the housing.
Article 39 of the Housing Law states: “The investor shall mobilize capital from the advance of the person wishing to buy or rent a house – this shall only apply in the case of approved housing design. finished nailing The total amount of money raised prior to the handover of the house to the person in need can not exceed 70% of the value of the house stated in the contract. “
Article 14 of the Law on Real Estate Business stipulates: “Real estate business project investors and customers are agreed upon in the contract on the purchase and sale of houses and construction works to be formed in the future in the form of Advance money and must ensure the following principles: Advance payment is made many times, the first time only when the investor has built the infrastructure for property by content, advance. The level of the project has been approved, the next mobilization is in line with the progress of the investment in property. “
Article 9 of Decree 71/2010 / ND-CP stipulates that investors can only sign contracts, capital contribution documents or investment co-operation contracts after approval of housing development projects. , has commenced the construction of the dwelling house and has notified the Department of Construction where the housing development project is known at least 15 days prior to the date of signing the capital mobilization contract. For cases of mobilizing capital from advance purchase of houses, the investor can only mobilize after the technical design of the house has been approved, has completed the foundation of the house, completed procedures Buying or selling houses via property trading floors in accordance with the provisions of the law on property business and have notified the Construction Services of the localities where the housing development projects are prescribed.
In recent times, there have been many litigations in the real estate market involving disputes over ownership and capital. These disputes come from many sides such as investors, buyers and even state policies.
However, the most common cause is due to the investors’ overconfidence or their poor project management capacity, which leads to contractual incompatibility. According to lawsuit statistics, the investors are not following the procedures and regulations of the law and even ahead of many steps leading to a lot of risk for the capital contributors to buy the project when the contract is broken because of slow progress, wrong planning or even projects can not clear the ground.
In addition, the contribution of capital to buy houses and land is not prohibited by law, so many people are willing to take advantage of the risk not willing to know the situation of the project they are investing.
Risks associated with the sale of defective housing are from both investors and buyers. Therefore, in order to minimize the risk of contract breach, the responsibility lies with both parties.
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On the part of investors, a strict law is the best way to ensure that government regulations are properly and sufficiently implemented when opening up projects or even a small property.
The most important thing is still the buyer side. To limit the risk for yourself, buyers of a property when making the capital contribution should pay attention:
Find out the full information as well as the credibility of the investor before participating in the capital contribution. In important transactions, the role of the consultants is extremely important.
Learn about the laws of buying and selling real estate
Regularly track project progress
If the investor is behind schedule, the interest rate will be paid on the capital contribution in accordance with the regulations of the State Bank of Vietnam. If the project cannot be deployed, the investor must return the money and should bind the investor to compensate 2-3 times this amount.
If the two parties can not come to an agreement, the individual contributing capital can bring the matter to court, because the principle of a contract between the two parties is the civil contract.
Thus, although we know a property is a super-profitable investment field. But when making a capital contribution to a home or business, every individual needs to grasp the basic knowledge before using the money to buy the risk.
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