Department of Construction HCMC looks Thuan Viet trapping buyers in New City project?

New City is a social housing project, then acquired by Thuan Viet to do business. However, when the conversion procedure was not completed, the company sold massively for thousands of buyers. Because of lack of financial obligations, this company has applied the “temporary” price to customers.

“Cake painting” and temporarily calculated …

According to the information of Department of Construction HCM City, New City project that Thuan Viet Construction – Trading Company Limited (hereinafter referred to as Thuan Viet) is selling the former capital belonging to the project of resettlement of the city. City to solve the problem of housing for the land clearance. New City is also part of the apartment complex Binh Khanh Duc Khai built in 2013.

For a variety of reasons, the project was completed without the recipient. Before that situation, the City People’s Committee. HCM has approved for Thuan Viet acquisition for commercial business.

Offered and contracted but New City project has not completed the transition from social housing to commercial

Up to now, the project has not completed the procedure to move to commercial apartments. However, Thuan Viet deliberately ignore the constraints to publicly sell the project.

This company has set up a temporary price list to offer customers. According to legal experts, the lack of transparency in the “temporary” binding can result in single, double damage. It means that after signing the deal, Thuan Viet can push the price higher than the sign many times. Customers easily fall into the scene of “forced TB to follow TB”.

The New City project has approximately 1,300 apartments, about 1,000 of which have been sold. Selling price is around VND50 million / sqm. Many customers think that this price is acceptable because of the prime location of the project. However, few people know that the price of buying a contract is only “expected”, meaning that this price can be increased by the investor when signing the purchase contract, not fixed.

The contract between Thuan Viet and the customer has many terms are vague and have not determined the price of the apartment

Legislation before the “nose” Department of Construction?

Remarkably, the price list of apartments of Thuan Viet Trade – Construction Co., Ltd. only recorded “value of temporary land use rights”. This is unusual, never happened in the apartment market in HCMC. HCM as well as the whole country.

At the recent press conference, leaders of  Department of Construction. HCM has not yet submitted the dossier of eligibility for capital mobilization and the land use fee has not yet been set.

Department of Construction also said that the Department has no official letter to open the project when not qualified. Besides, the Department has not determined the value of land use rights of the project.

At the regular press conference, Mr. Phan Truong Son, Head of Housing Development and Real Estate Market, said that by the end of March, HCM has not confirmed the eligibility for capital mobilization for Thuan Viet. On the other hand, Son also insisted that the company mainly signed contracts with customers in the form of deposits and booking, not signing sales contracts.

According to legal experts, the nature of these two things is ultimately to collect money from customers. In addition, Thuan Viet publicly issued a policy to “lure” customers to pay 95% of the apartment value, only by signing the agreement to buy apartments without having to through the purchase contract.

New City project investors are still mobilizing capital in the past. Especially, despite many media reports, Thuan Viet leaders still ignore public opinion. Sales force is still trying to market apartments for buyers. PV has repeatedly contacted business leaders but declined to answer.

Lawyer Tran Duc Phuong, director of the law firm Hop Viet, said many customers understand incorrectly the concept of “raising capital” with “prepaid money” should lead to ambiguity in the transaction house sale formed in the future.

Although the Housing Act 2014 and Decree 99/2015 / ND-CP, which guides the Housing Act 2014, there is a distinction between “capital contribution” and “purchase money,” but many investors still ignore the two concepts. This is to achieve the purpose of raising funds.

According to lawyer Phuong, Article 68 of the Housing Act 2014 stipulates that cases of raising capital in the wrong way and not meeting the conditions for each type of house in accordance with the law on housing do not have no legal value.

Therefore, when signing contracts on capital (contributors) or sales contracts (for homebuyers), contractual subjects must comply with the civil law, and must abide by the law on housing. . The contract must be in the form of a new one and not be declared invalid.

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