HEADING TOWARDS A HEALTHY REAL ESTATE MARKET: PROTECTING HOMEBUYERS

According to Lawyer Tran Hau from FDVN Law Firm (Danang Bar Association), under the current legal framework, if capital mobilization is conducted in violation of the law and only results in civil or administrative liability, the investors may still exploit and deceive small investors without hesitation in order to collect money.

However, handling criminal liability by proving signs of credit abuse or fraud for appropriating property is not easy, as the cash flow converted under contractual commitments, if hidden subtly, can make it difficult to prosecute offenses related to the infringement of property rights.

Lawyer Tran Hau said that the Real Estate Business Law should supplement regulations requiring investors to publicly and transparently disclose all project information and real estate transaction information.

In capital mobilization activities in the form of capital contribution, investment cooperation, business cooperation, joint venture, or association of organizations, households, and individuals, must be accompanied by evidence from authorized agencies to raise capital.

Furthermore, regulations on sanctions to handle investors who violate capital mobilization should be perfected, taking into consideration the nature of transactions signed by investors and customers.

If the nature of the transaction involves the transfer/purchase of real estate properties and the project is still allowed by the state agency, it is necessary to continue implementing agreements to protect customers until the end.

In terms of criminal sanctions, there should be specific provisions in the current Criminal Law to define the elements of the crime of deceiving customers, to ensure that individuals who employ deceptive methods to trap customers into signing contracts can be subject to criminal prosecution, thus ensuring the deterrent effect.

“Even citizens themselves, when signing contracts, need to carefully study and consider the terms that safeguard their rights and interests, to avoid risks and injustices in contract negotiations,” said Mrs. Hau.

Link of the article: Hướng tới thị trường bất động sản lành mạnh: Cần bảo vệ người mua nhà