HoREA proposed to buy a house not exceeding 50 million VND

Ho Chi Minh City Real Estate Association (HoREA) has just issued a document proposing to amend and supplement a number of articles related to the real estate law, in which it is proposed to add prohibited acts to Article 8, Law real estate business.

According to HoREA, it is not recommended to set up a purchase contract or use a form of making a record, a deposit reservation agreement, "investment capital contribution", "investment cooperation" and "business cooperation" to perform the delivery of real estate formed in the future. HoREA said that this mobilized capital illegally, contrary to the provisions of the Law on Real Estate Business.

HoREA also proposed to supplement the regime on deposit in Article 57 of the Law on Real Estate Business with the amount of not more than VND 50 million before signing a contract of purchase, sale and hire purchase of real estate in the future. According to HoREA, this petition aims to prevent some enterprises and oligarchs from taking advantage of the Civil Code to mobilize illegal capital.

Mr. Le Hoang Chau - Chairman of HoREA, Real Estate Business Law does not have regulations to deposit so the oligarchs and businesses bypass the Civil Law so as not to limit the amount of mobilization. Most cases of higher deposits are likely to be tricked by those clients.

In the real estate business contract, payment of the first installment does not exceed 30% of the contract value so it is reasonable to deposit no more than VND 50 million. HoREA made this recommendation to control the distribution of subdivided plots, taking advantage of civil law to mobilize.

According to Nam Phong – Tri thuc tre