For housing transactions involving foreign elements, what is the fine imposed on leasing houses, turning houses into offices, or using houses for purposes other than residential purposes in Vietnam?
What are the procedures for entering into housing transactions in Vietnam?
Under Article 120 of the Law on Housing 2014, the regulations are as follows:
Procedures for entering into housing transactions
1. Any parties entering into housing transactions shall conclude agreements on housing sale, lease, lease purchase, giving, exchange, mortgage, capital contribution, lending, permission for stay, or authorization of housing management or documents on transfer of agreement on commercial housing sale (hereinafter referred to as housing agreement) according to regulations prescribed in Article 121 of this Law; regarding the organization giving house of gratitude, only document on giving is required.
2. The contracting parties shall agree to choose a party to request the competent agency to grant the Certificate of housing; regarding housing which is bought or leased and purchased from the investor, the investor must complete the procedures for the Certificate issued to the buyer or the lessee by the competent agency, unless the buyer or the lessee wishes to completes the procedures themselves.
3. If the competent agency grants the Certificate to the person who buys, rents and purchases housing, receives housing as giving, exchange, or capital contribution together with lawful residential land where that housing is located, it shall concurrently recognize the homeownership and rights to use residential land.
Thus, housing transactions will be conducted according to the procedures outlined in the regulation above.
For housing transactions involving foreign elements, what is the fine imposed on leasing houses, turning houses into offices, or using houses for purposes other than residential purposes in Vietnam?
For housing transactions involving foreign elements, what is the fine imposed on leasing houses, turning houses into offices, or using houses for purposes other than residential purposes in Vietnam?
Under Article 64 of Decree 16/2022/ND-CP, the regulations are as follows:
Violation of regulation housing transaction management
1. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed on:
a) Selling, leasing, lease purchasing state-owned houses with inappropriate authorization, for the incorrect buyers, or under incorrect conditions;
b) Selling, leasing, lease purchasing social houses to the incorrect buyers;
c) Selling, leasing, lease purchasing social houses without sufficient conditions as per the law.
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3. Penalties for violations which involve foreign elements:
a) A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed on leasing houses without notifying housing authorities of districts in writing where the houses are located;
b) A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed on paying for purchase, lease purchase of houses via other than credit institutions legally operating in Vietnam;
c) A fine ranging from VND 160.000.000 to VND 200.000.000 shall be imposed on leasing houses, turning houses into office, or using houses for purposes other than residential purposes.
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6. Remedial measures:
a) Mandated appropriation of state-owned houses which have been sold, leased, or lease purchased with inappropriate authorization, for the incorrect buyers, or under incorrect conditions for violations under Point a Clause 1 of this Article;
b) Mandated appropriation of social houses and refund of social house purchase, lease, lease purchase price to the parties that purchase or rent purchase social houses for violations under Point b and Point c Clause 1 of this Article;
c) Mandated appropriation of state-owned houses which have been converted, sold, or subleased without consent of the authorities for violations under Point a Clause 2 of this Article;
d) Mandated appropriation of social houses for violations under Point b Clause 2 of this Article;
dd) Mandated recollection of payments made via other than credit institutions legally operating in Vietnam for violations under Point b Clause 3 of this Article;
e) Mandated cancellation of lease of the leasing parties for violations under Point c Clause 3 of this Article;
g) Mandated appropriation of houses sold to foreign individuals, refund of all payments paid by the buyers, and payment of damages for the buyers for violations under Point a and Point b Clause 5 of this Article.
Thus, based on the violation of regulations on housing transaction management, the administrative fine is determined according to the above regulations.
For housing transactions involving foreign elements, a fine ranging from VND 160.000.000 to VND 200.000.000 shall be imposed on leasing houses, turning houses into offices, or using houses for purposes other than residential purposes.
Corresponding remedial measures shall be determined under penalties for violations of regulations on housing transaction management as stipulated above.
Note: The administrative fines prescribed above are only applicable to organizations. For individuals, the administrative fines will be half of that for organizations.
What is the prescriptive period for imposing penalties for violations of regulations on housing transaction management in Vietnam?
Under Article 5 of Decree 16/2022/ND-CP, the regulations are as follows:
Prescriptive period for imposing penalties for administrative violations
1. Prescriptive period for imposing penalties for administrative violations is 1 year for real estate trading, management of technical infrastructure, and production of construction materials.
Prescriptive period for imposing penalties for administrative violations is 2 year for housing construction, management, and development.
2. Starting date of prescriptive period mentioned under Clause 1 of this Article is regulated as follows:
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o) For violations under this Decree that are not mentioned under Point a, Point b, Point c, Point d, Point dd, Point e, Point g, Point h, Point i, Point k, Point l, Point m, or Point n of this Clause, competent individuals entitled to impose penalties shall rely on the Law on Imposing Penalties for Administrative Violations and relevant documents to determine the starting date of prescriptive period.
The prescriptive period for imposing penalties for violations of regulations on housing transaction management in Vietnam is one year.
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