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The Notes You Must Know About The Payment Schedule When Buying A Home “On Paper”

payment schedule when buying a home "on paper"

Currently, many customers buy a flat in a project under construction, the investor requires a 30% advance payment of the value of the apartment. So, is this true with the current law?

According to Article 57 of the Housing Act 2014 on payment for purchase and sale of real estate formed in the future, “The payment in real estate purchase and sale in the future is made many times, For the first time, no more than 30% of the contract value, the subsequent time must be compatible with the progress of real estate construction but the total amount shall not exceed 70% of the contract value when the house or building has not yet been handed over to the client.; In cases where the seller or the hirer is an enterprise with foreign owned capital, the total amount shall not exceed 50% of the contract value. “

As such, the investor requires you to deposit 30% of the value of the apartment in accordance with the law.

Buying a house on the paper should thoroughly understand the investor information

Also when buying a house on paper, the buyer should note the following three important things:

Firstly, the project must have “papers on land use rights, project dossiers, construction drawing designs already approved by competent authorities, and construction permits, for cases where construction permits To set up, papers on acceptance of completion of construction of corresponding technical infrastructure according to the project progress; In the case of an apartment building, a mixed building is intended to be in the future, there must be a checklist of completion of the foundation of the building.

Secondly, the investor of the project before the sale or lease-purchase of houses in the future must have a commercial bank capable of guaranteeing financial obligations of the investor to the client when the owner Investors do not hand over the house in accordance with the schedule committed to customers.

~~>>Update on new information on the real estate market in Vietnam here: Vietnam real estate market

Third, before the sale or lease-purchase of houses to be formed in the future, the investors must notify in writing the provincial-level house management bodies of the eligible houses for sale or lease-purchase.

payment schedule when buying a home "on paper"
Preventing possible risks when buying a home on paper

In addition to the price advantage, flexible payment method, buying a house on paper also has many risks that the buyer should be careful:

First, change the name of the project. This is the case where the “dead” project, the scandalous project was previously renamed to remove the traces, but actually “new bottle, old wine.”

Second, change the name of the owner. This situation occurs with the investors doing snatching, being reflected by newspapers and then changing the name of the business.

Third, redone the 1/500 master plan, adding bogus gadgets (ie cheating in terms of information to customers). In some cases, the enterprise arbitrarily changes the 1/500 master plan. Although authorities have not approved, they have sold.

Fourth, the price increase compared with the commitment between the parties to each other. For example, the investor sells VND300million / platform, but the trading platform sells VND400-500million / platform and eventually does not contract the customer, resulting in disputes.

Real estate experts say that in order to minimize the risk of future home sales, before buying, people should check the legality, the most important of which is to clarify: Does the state have a construction permit, have paid land use fees for the State, have been recognized by the authorities recognized project to open for sale in the future, commitment on quality Built-in sales contract.

Specifically, there are two types of simple and effective papers, namely, the written notice of the qualified project for the sale of houses issued by the Department of Construction and the guarantee letter of the bank. Customers have the right to request that two types of documents be considered as current standards. If one of these “laissez-passers” is missing, customers should be careful when deciding to buy a home.

payment schedule when buying a home "on paper"
There are many risks when buying a home on paper, so buyers need to be very careful

A written confirmation of the project qualifying for the sale of a house to be formed in the future is announced by the Department of Construction meaning the project has completed the full legal file and the completion of the foundation. This is the legal time (regulated by the law) project investors are allowed to mobilize capital from customers. The added security of the buyer is usually the progress of the projects announced by the Department of Construction eligible for capital mobilization, ie the preparatory work to build the frame construction.

Meanwhile, the guarantee letter issued by the bank is meaningful, if the investor does not hand over the house in time, the credit institution will replace the investor compensation for damages to customers. Guarantees are available in two forms: one for unsecured loans (based on corporate credit ratings) and two for secured collateral (collateral). If you buy a house in the future, check for this deed, customers can be assured of the project has been carefully screened credit institutions many stages. This is also a provision in the law.

In addition to the two simple and easy legal bases examined above, to avoid risks, investors and customers buying a property can screen information using a number of manual methods. For example, look up the history of the formation and operation of the project investor on the mass media. Another equally effective way is to spend a few hours down the field (the project area is located) to the field. You can sit in the nearby clinics to hear local information or random interviews in this area to get information outside of the real estate broker’s ads for more basic information when making investment decisions.

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