Investor puts apartments up for sale before securing land rights
Investor puts apartments up for sale before securing land rights
The social housing project Lotus Garden at Phu My District (Dong Thap Province) has not been granted a construction permit by the provincial authority, yet the project was still putting apartments up for sale.
The project has an initial outlay of nearly VND530 billion (US$23 million), financed by the Phuong Nam Transport Construction Exploitation JSC (PNC).
There are around 504 apartments and 14 commercial buildings in its construction plan, which is expected to be completed in Q2/2025.
The Provincial Department of Construction (PDC) revealed that to date, the project investors have not secured a construction permit and proof of land use rights and have not handed in an appraisal dossier. As a result, they are not legally allowed to make sale announcements.
However, the investors are beginning to market their apartments through issuing "Reservation forms" and "Agreement to purchase forms."
Similar offers can also be found on social networks, where home buyers can secure the right to buy apartments by putting down deposits.
Le Van Ngot, deputy director of PDC, said that his department is requesting the investors and relevant brokers to stop the unlawful sale of apartments. The sale will not be re-opened until the project obtains a carte blanche from the authority.
The deputy director also underscored that not all home buyers are eligible for the apartments but only those defined in Decision 35 issued by the People's Committee of Dong Thap Province.
Eligible buyers include people with "meritorious services to the revolution, people with low incomes living in urban areas, military officers, cadres, officials and public servants."
PNC admitted that it was too hasty to offer the right to purchase to customers with deposits. Accordingly, it will return the deposits to the customers and call off the sale.
PNC also said a sale announcement would be made again as soon as the authority gives the project the green light. Sales information will be published at its office, on PDC's websites, and in the media.
So far, the project has completed the geological investigation and load tests and obtained various necessary papers, including environmental and fire safety licenses. Once the construction site is ready, the ground-breaking ceremony will be set.
