Question: Please ask, how will violations of regulations on real estate business be punished?

Reply:

What are the administrative penalties for violating regulations on real estate business?

Violations of regulations on real estate business will be subject to administrative sanctions according to Article 58, Decree No. 16/2022/ND-CP as follows:

(1) Fine from 100,000,000 VND to 120,000,000 VND for one of the following acts:

- Real estate business in cases where businesses and cooperatives must be established but not established according to regulations;

- Failure to disclose, incomplete or incorrect disclosure of the contents of real estate projects and housing construction investment projects according to regulations;

- The real estate business contract is not made in writing or the real estate business contract is made with incomplete main contents as prescribed or contrary to the provisions of law;

- Failure to provide information about construction investment progress or use of advance payments upon request; Do not allow the buyer or lessee to actually inspect the construction progress and quality of the project according to regulations;

- Collecting fees related to real estate transfers in contravention of regulations.

(2) A fine from 120,000,000 VND to 160,000,000 VND shall be imposed on investors or owners of houses or construction works who commit one of the following acts:

- Signing a contract to buy, sell or lease a house or construction project without attaching land use rights to that house or construction project;

- Failure to notify the buyer of restrictions on ownership of houses and construction works (if any).

(3) Fine from 400,000,000 VND to 600,000,000 VND for one of the following acts:

- Real estate business that does not fully meet the prescribed conditions or is not allowed to be put into business according to regulations;

- Real estate business not within the scope of business as prescribed;

- Deploying the construction of real estate business projects and housing construction investment projects that are behind schedule and have been approved by competent authorities;

- Sell or lease purchase of future housing without a contract with a commercial bank capable of guaranteeing the investor's financial obligations when the investor does not hand over the housing on schedule. The level committed to the customer or the content of the guarantee contract is incorrect or incomplete according to the provisions of law;

- Collect money from the buyer or lessee of future real estate that is not on schedule for project implementation as agreed by the parties or collects in excess of a percentage of the contract value as prescribed;

- Authorize or assign parties participating in investment cooperation, joint venture, association, business cooperation or capital contribution to sign real estate purchase, sale, transfer or lease purchase contracts;

- Refuse to confirm without a valid reason or incorrectly confirm the transfer contract of real estate purchase, sale or lease purchase to be formed in the future according to regulations;

- Transferring lease-purchase contracts of existing houses or construction works or transferring contracts of purchase and sale or lease-purchase of houses to be formed in the future in contravention of regulations;

- Failure to comply with regulations on real estate purchase, sale, transfer, lease, and lease purchase prices in cases where regulations exist;

- In case of failure to carry out procedures to request a certificate of land use rights, ownership of housing and other assets attached to land to the buyer or lessee or failure to provide relevant legal documents and records, Authorities for buyers, lease-purchasers of housing according to regulations shall sanction administrative violations according to the provisions of the Decree on sanctioning administrative violations in the field of land.

(4) A fine from 800,000,000 VND to 1,000,000,000 VND shall be imposed on investors of real estate business projects who commit one of the following acts:

- Transfer of all or part of the project without following prescribed procedures;

- Transfer of all or part of the project without fully ensuring the requirements or conditions as prescribed;

- In case of transferring all or part of a project without a land use right certificate, when there is a dispute over land use rights or when it is distrained to ensure judgment enforcement, the transferee is not If you are a real estate business or do not have enough financial capacity according to regulations, you will be fined according to the provisions of the Government's Decree on sanctioning of administrative violations in the field of land;

- Handing over houses and construction works to customers when the investment in construction of houses, construction works and technical and social infrastructure projects has not been completed according to the progress stated in the approved project. approval, connection with the common infrastructure system of the area has not been guaranteed, the entire exterior has not been completed (in case of handing over houses or rough construction works), or acceptance has not been completed or documents have not been issued. Approval of acceptance results from the competent authority to put the housing project and social infrastructure project into use according to regulations;

- Mobilizing capital improperly;

- Using capital mobilized from organizations, individuals or advances from buyers, lessees, or lessees to purchase real estate to be formed in the future not for the committed purpose.

(5) Additional sanctions: Suspension of real estate business activities from 03 months to 06 months for projects that violate the provisions of Points a, b and e, Clause 3, Article 58, Decree No. 16/2022/ND-CP.

(6) Remedial measures:

- Force full and accurate disclosure of information content as prescribed for the acts specified in Point b, Clause 1, Article 58, Decree No. 16/2022/ND-CP;

- Forced to create a contract in accordance with regulations for the acts specified in Point c, Clause 1, Article 58, Decree No. 16/2022/ND-CP;

- Forced to provide information about construction investment progress or use of advance money upon request; Force the purchaser and lessee to physically inspect the construction progress at the project according to regulations with the actions specified in Point d, Clause 1, Article 58, Decree No. 16/2022/ND-CP;

- Forced to return to the buyer the fees related to real estate transfer not in accordance with regulations for the acts specified in Point dd, Clause 1, Article 58, Decree No. 16/2022/ND-CP;

- Forced re-establishment of contracts associated with land use rights, houses, and construction works with the acts specified in Point a, Clause 2, Article 58, Decree No. 16/2022/ND-CP;

- Forced notification to parties about restrictions on ownership of houses and construction works (if any) for the actions specified in Point b, Clause 2, Article 58 of Decree 16/2022/ND-CP;

- Forcing real estate business within the scope of business according to regulations with the acts specified in Point b, Clause 3, Article 58, Decree No. 16/2022/ND-CP;

- Forced to have a contract to guarantee the investor's financial obligations according to regulations for the acts specified in Point d, Clause 3, Article 58, Decree No. 16/2022/ND-CP;

- Forced to collect money from the buyer or lessee for real estate to be formed in the future according to the project schedule or forced to refund the buyer the excess contract value with the acts specified in Point dd, Clause 3, Article 58, Decree No. 16/2022/ND-CP;

- Forced confirmation according to regulations for acts specified in Point g, Clause 3, Article 58, Decree No. 16/2022/ND-CP;

- Forced transfer of contracts in accordance with regulations with the acts specified in Point h, Clause 3, Article 58, Decree No. 16/2022/ND-CP;

- Forced compliance with regulations on real estate purchase, transfer, lease, and lease purchase prices and refund of excess value (if any) for the acts specified in Point i, Clause 3, Article 58, Decree No. 16/2022/ND-CP;

- Forced transfer of the project or part of the project according to regulations with the actions specified in Points a and b, Clause 4, Article 58, Decree No. 16/2022/ND-CP;

- Forced to stop handing over houses, construction works, complete construction or complete acceptance or have written approval of acceptance results from competent state agencies according to regulations for the acts specified in Clause 1 of this Article. Point d, Clause 4, Article 58, Decree No. 16/2022/ND-CP;

- Forced return of capital mobilized improperly with the actions specified in Point dd, Clause 4, Article 58, Decree No. 16/2022/ND-CP;

- Forced to use mobilized capital for the right purpose as committed to the behavior specified in Point e, Clause 4, Article 58, Decree No. 16/2022/ND-CP.

* Note: The above fine applies to violating organizations. If an individual commits a similar violation, the fine is equal to half of the organizational fine according to Point c, Clause 3, Article 4, Decree No. 16/2022 /ND-CP.

Types of real estate put into business

According to Article 5, Law on Real Estate Business 2014, types of real estate put into business according to the provisions of the Law on Real Estate Business 2014 include:

- Existing houses and construction works of organizations and individuals;

- Houses and construction projects formed in the future by organizations and individuals;

- Houses and construction works are public assets that are allowed to be put into business by a competent state agency;

- Types of land that are allowed to transfer, lease, or sublease land use rights according to the provisions of land law are allowed to trade in land use rights.