What are penalties for collection of fees related to real estate transfer in a manner not conforming to regulations and law in Vietnam?
What are penalties for collection of fees related to real estate transfer in a manner not conforming to regulations and law in Vietnam?
Based on Clause 1, Article 58 of Decree 16/2022/ND-CP, the regulations are as follows:
"Article 58. Violation of regulations on real estate business
1. A fine ranging from VND 100,000,000 to VND 120,000,000 shall be imposed for one of the following acts:
a) Conducting real estate business in cases requiring the establishment of an enterprise or cooperative without establishing according to regulations;
b) Failing to publicly disclose, disclosing incompletely or incorrectly the information about real estate projects, housing construction investment projects as prescribed;
c) Real estate business contracts are not made in writing or real estate business contracts do not fully include the main contents as prescribed or are contrary to the provisions of law;
d) Failing to provide information on construction progress or the use of advance payments when requested; not allowing buyers or lessees to check the actual construction progress and quality of the works as prescribed;
dd) Collecting fees related to real estate transfer in a manner not conforming to regulations and law."
Collecting fees related to real estate transfer in a manner not conforming to regulations and law will be administratively fined from VND 100,000,000 to VND 120,000,000.
What are penalties for collection of fees related to real estate transfer in a manner not conforming to regulations and law in Vietnam?
Administrative penalties for real estate business activities beyond the scope of trade in Vietnam
Based on Clause 3, Article 58 of Decree 16/2022/ND-CP, the regulations are as follows:
"Article 58. Violation of regulations on real estate business
...
3. A fine ranging from VND 400,000,000 to VND 600,000,000 shall be imposed for one of the following acts:
a) Conducting a real estate business with properties that do not fully meet the conditions as prescribed or are not allowed to enter the business as prescribed;
b) Conducting a real estate business beyond the permitted scope of trade as prescribed;
c) Implementing real estate business projects, housing construction investment projects behind the schedule approved by competent authorities;
d) Selling or leasing houses formed in the future without a contract with a commercial bank that is competent to guarantee the financial obligations of the investor when the investor does not hand over the houses according to the committed schedule to the customers or the guarantee contract content is incorrect or incomplete as prescribed by law;
dd) Collecting money from buyers, lessees of future-formed real estate not in accordance with the project progress agreed by the parties or collecting beyond the percentage value of the contract as prescribed;
e) Authorizing or assigning investment cooperation, joint ventures, linked businesses, or capital contribution partners to sign property sales, transfer, or lease-purchase contracts;
g) Refusing to confirm without a justifiable reason or confirming incorrectly into the contract transfer document of real estate purchases, lease-purchases formed in the future as prescribed;
h) Transferring house lease-purchase contracts, existing construction works, or transferring future-formed house sales, lease-purchase contracts non-compliantly;
i) Failing to comply with regulations on the sale, transfer, lease, or lease-purchase prices of real estate in cases where there are regulations;
k) In cases where procedures for requesting the issuance of certificates of land use rights, ownership of houses, and other assets attached to the land for buyers, lessees, or failing to provide related legal documents for the purchasers, lessees of houses as prescribed, administrative sanctions shall be imposed according to the regulations on administrative penalties in the land sector."
Conducting a real estate business beyond the permitted scope of trade as prescribed will be administratively fined from VND 400,000,000 to VND 600,000,000.
Vietnam: Will mobilizing capital for real estate transfer in a manner not conforming to regulations and law be fined up to VND 1 billion?
Based on Clause 4, Article 58 of Decree 16/2022/ND-CP, the regulations are as follows:
"Article 58. Violation of regulations on real estate business
...
4. A fine ranging from VND 800,000,000 to VND 1,000,000,000 shall be imposed on investors of real estate business projects for one of the following acts:
a) Transferring the entire or part of a project without following the stipulated procedures;
b) Transferring the entire or part of a project without ensuring full requirements or conditions as prescribed;
c) In cases of transferring the entire or part of a project without a land use right certificate, during disputes over land use rights, or while under lien for judgment execution, the transferee is not a real estate business enterprise or does not meet financial capability conditions as prescribed, sanctions shall be imposed according to the decree on administrative penalties in the land sector of the Government of Vietnam;
d) Handing over houses or construction works to customers before completing the investment in constructing housing, construction works, and technical and social infrastructure works as scheduled in the approved project, failing to ensure connectivity with the regional infrastructure system, not fully completing the exterior (for rough handed-over houses, construction works) or not completing acceptance or failing to obtain the acceptance result approval document from the competent authority for use;
dd) Mobilizing non-compliant capital;
e) Using mobilized capital from organizations, individuals, or advance payments from buyers, lessees, future-formed real estate lessees not for the committed purposes."
Thus, non-compliant capital mobilization in real estate business will be administratively fined from VND 800,000,000 to VND 1,000,000,000.
In addition to administrative penalties according to the above regulations, depending on the violation of the regulations on real estate business, additional penalties and remedial measures corresponding to each violation shall be determined according to Clause 5, Clause 6, Article 58 of Decree 16/2022/ND-CP.
Note: The administrative sanction levels according to the above regulations only apply to organizations. In case of individual violations, the administrative sanction level will be 1/2 of the organization.
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