The Vietnamese real estate market is risk-averse because the participants are unprepared, misunderstood or lack the knowledge and do not have full legal support. Consequently, experts say transparency in financial management is key to eliminating conflicts between stakeholders such as investors, residents, and regulators, to build a healthy, stable and sustainable development market.
Apartment disputes, who is worse?
Recognizing the aftermath of urban apartment boom disputes over time, expert analysts, Real estate is a relatively sensitive commodity, so these disputes can immediately affect the sales rate of the project and, of course, the value of the apartment will also be reduced, especially in projects for litigation, prolonged litigation. Mr. Tran Trong Quan, director of a large real estate brokerage in Hanoi, said that brokerage workers are most afraid of dealing with disputed projects in brokerage jobs.
Although the information provided, just before the deposit date, there are customers canceling the contract because of legal concerns of the project as well as the inconvenience attached. In fact, despite the decrees, circulars and legal documents governing the management of apartment buildings have been sufficient, there is a lack of clarity on the remedies and legal framework, deal with apartment disputes, resulting in disruptive housing disputes. When such disputes occur, it is clear that both the owner and the investor will suffer, if the longer the dispute, the more damage will multiply.
The strength of the property market from a legal perspective
“Transparency in financial management is critical to eliminating conflicts between stakeholders such as investors, residents, management units”, Ms. Vu Kieu Hanh, Savills Property Manager said.
Most housing transactions are pushed up to the level of dispute due to unexpected legal problems. It is possible to point out some of the important point of the typical dispute: Disputes in the ownership area common to apartment projects, although clearly stated in the Housing Law, but the most controversial. A type of dispute is also widespread and varied, which is a dispute over the cost of serviced apartments. In addition, there are disputes over home equity financing, construction progress, payment, construction quality, management board, disputes over exclusive supply services such as gas, electricity, water, Internet …
“The owner always enforces the terms of the contract, so there have been disputes. At present, the system of legal documents regulating relations relating to condominiums is too slow, not keeping up with the development of condominiums. Meanwhile, there is too much text, redundant, lack, conflict, causing difficulties when applying the settlement of disputes”, lawyer Nguyen Hoang Nguyen Binh said.
In another view, the real estate experts said that it is unclear about the regulation of the function of the management has led to many unwanted disputes. Management is elected by residents, who represent the voices of residents but do not fulfill their responsibilities, and sometimes lead to disputes. This has caused apartment disputes to continue. And as long as the management in some apartment still deliberately abuse of power, then there will still be “war is not ending”.
Deputy Chairman of Ho Chi Minh City Lawyers Association Nguyen Van Hau said that under the provisions of Article 71 of the Housing Law, the Condominium Management Board is the representative to protect the legitimate rights and interests of owners and users in the process of using the condominium. And within 12 months from the date, the condominium is put into operation and use, the owner is responsible for organizing the condominium conference to vote for the management. Article 12 of the Regulation on use management of condominiums, issued together with Decision No. 08/2008 / QD-BXD of May 28, 2008, stipulates that the condominium management nominated and elected by condominium conferences. After that, the apartment management is responsible for registering with the District People’s Committee to be recognized. “In cases where the news is not true, affecting reputation and investors will be treated very seriously. Apart from being administratively sanctioned, organizations and individuals that commit acts of spreading rumors, causing damage to enterprises shall also have to pay compensation for damage according to the regulations of law”, lawyer Hau said.
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