Risks when buying and selling real estate appear in many forms. Meanwhile, the legal system is still in the process of gradual improvement. Therefore, the most effective way to minimize risk is that home buyer must learn to protect themselves before seeking help from the authorities.
Many of the risks of buying and selling houses that will form in the future
According to Le Hoang Chau, chairman of the HCMC Real Estate Association HCM, the bank guarantee regulations only apply to the law, but the implementation in the past was not reasonable.“If the guarantee is in compliance with the law, no bank will act as a guarantee for few projects, not even much. This is the granting of credits and banks inherit the fee. With a project of over $50 million, the bank won’t do enough to stand surety” Chau stressed.According to Chau, a number of real estates companies have brought the red book of the first mortgage loan and mortgaged apartments sold to customers for a second loan. Meanwhile, the law only allows mortgage projects once.This is a dishonest business, deceiving customers, adversely affecting the market. This type of project mortgage will pose a huge risk to the customer because if the project does not work, customers will lose.“Currently, the drawback is that customers with real needs are at risk, may receive products that are not on the schedule, not qualitative and don’t meet the commitment of the investor. Secondary speculators can borrow bank capital for business. The quality of service, the work is not controlled” Mr.Chau said.Attorney Thai Van Chung said that despite that the HCM City People’s Committee has come up with many solutions to limit the risk for homebuyers, in fact, there are still many disputes. The majority of disputes involving real estate fall into the terms of payment where the customer is subject to many risks.
Buyers are always the object to suffer
Attorney Ha Hai said that the regulations on future house purchase contracts are set out in many laws such as the Civil Code 2015, the Housing Act 2014, the Law on Real Estate Business of the Year 2014, Commercial Law 2005 … Along with that is the regulations on the contract of sale apartments are scattered in many other sub-law documents.However, in fact, apartment buyers cannot access full information. Investors of apartment projects do not keep credibility. Many sample contracts contain unequal, misleading, and even illegal content.“The state of contract breach, misappropriation of the buyer’s capital, no home delivery or assignment of a house late for appointment or handover of a house without regular paperwork occurs frequently. There are cases where ten-year homeowners still do not have ownership certificates. When the dispute arises, the authorities are still confused in the resolution process, because of lack of legal provisions.This situation comes from the lack of safe legal corridors for parties to enter into contracts. Legislation overlaps and omissions lead to contracting parties in the contract of sale and purchase of apartment that are always in a state of insecurity and inequality. When there is no equality, there are many formal agreements expressing the general will of the parties, but it does not reflect the aspirations of the parties” Ha Hai said.
Customers must self-assess the capacity of the investor.
According to Mr. Nguyen Dao Duy, Deputy General Director of LDG Group, real estate likes other consumer industries, enterprises must have regulations to make norms and save themselves based on actual capacity. They must self-proclaim the quality of products formed in the future, which is the reference to the customer. With that commitment, customers look at the value of the products as they see the commitment of the owner, helping them see what the potential is and what the risks are in the future.“Business owners must plan their playgrounds themselves. The law is there, but applying it in the reality is very inadequate. More than anyone, the people associated with the customer interests should be controlled. The customer is still the most honest, accurate person” Mr. Duy said.Leaders of LDG Group believe that customers are the best, most accurate and honest supervisor. In the future, information about investors and projects also need to apply in the field of real estate. Through this, people and businesses can access and capture information publicly. This form of management also contributes to the rating of the customer self-assessment of the capacity of the owner.
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