Prohibited acts in housing under the Law on Housing in Vietnam

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1. Prohibited acts in housing in Vietnam

According to Article 6 of the Law on Housing 2014, prohibited acts in housing include:

(1) Infringing the homeownership of the State, organizations, households or individuals.

(2) Obstructing the fulfillment of state management of housing, exercise of rights and fulfillment of obligations of the organization, household, or individual in terms of the homeownership, use of housing and housing-related transactions.

(3) Introducing policies on residential construction projects or residential construction projects in contravention of approved residential construction planning, residential development planning.

(4) Building houses on the pieces of land other than residential land; build houses in contravention of standards for design standards, housing area standards applied to each type of houses as prescribed. Applying the incorrect calculation of floor area prescribed in law on housing sale or specified in the lease purchase agreement.

(5) Illegal appropriation of housing areas; encroaching upon the space and facilities under common areas or ownership of other owners in any shape or form; arbitrarily change the bearing structure or change the design of private areas in the apartment building.

(6) Using the common areas and facilities under joint ownership or joint use for private purposes; use common areas or the areas for service provision in a mixed-use building for improper purposes against the approval of residential construction project or the approved project, unless such area is permitted to change purposes by a competent agency.

(7) Using mobilized capital or advance payments for housing development for improper purposes.

(8) The investor of a housing construction project authorizes or assigns a party to an investment cooperation, joint venture, association, business cooperation, capital contribution or other organization or individual to sign a contract. lease, lease purchase, purchase and sale of houses, deposit contracts for housing transactions or business of land use rights in the project.

(9) Making transactions in housing sale or transfer of housing sale agreement, housing lease, lease purchase, gifting, exchange, inheritance, mortgage, capital contribution, lending, and permission for stay or authorization for housing management not in accordance with this Law.

(10) Renovating, expanding, demolishing the houses under agreements on housing lease, lease purchase, lending, permission for stay, or authorization of housing management without the consent of the homeowner.

(11) Using the apartments not for residential purposes; using the area for business purposes in the apartment building under approved project for trading flammable materials, explosives, providing services causing environmental pollution, noise or negative effects on the lives of households and individuals in the apartment building as prescribed in regulations of the Government.

(12) Using the separate houses for trading flammable materials, explosives, providing services causing environmental pollution, noise or other operations or negative effects on the lives of households and individuals in the apartment building as prescribed in regulations of law on requirements for business.

(13) Providing information about housing inaccurately, untruthfully, unconformably with regulations or requests of the competent agencies; destroy or falsify information in the database of housing managed by the competent agencies.

2. Violations against regulations on housing development in Vietnam

According to Article 62 of Decree 139/2017/ND-CP, the administrative penalties for violations of regulations on housing development are as follows:

- A fine ranging from VND 40,000,000 to VND 50,000,000 shall be imposed for one of the following violations:

+ Failure to submit reports on implementation and completion of housing construction projects to competent authorities as regulated by law;

+ Naming or changing name of a housing construction project or names of regions in a housing construction project inconsistently with regulations or without approval decisions from competent authorities.

- A fine ranging from VND 80,000,000 to VND 100,000,000 shall be imposed on the investor for one of the following violations:

+ Failure to obtain the approval from a competent authority before modifying one of the following contents after the state-funded housing construction project: Implementation progress, type of building, total floor area, number of apartments, rates of types of houses and total investment;

+ Failure to leave land area or failure to leave enough land area in a project on construction of commercial houses to build social houses as regulated by law;

+ Failure to provide commercial houses in the project for occupiers of demolished building apartments who do not wish to relocate as regulated by law;

+ Failure to build houses to serve the relocation in the planning area for construction of houses for workers of industrial parks in the project on construction of industrial park infrastructure if the occupiers of demolished houses do not wish to relocate, or failure to provide housing in other places for relocated people as regulated by law;

+ Failure to provide land area to serve production activities of people who are relocated according to the housing construction project so as to serve the relocation in rural areas under the approved relocation plan;

+ Deliberately changing designed area of house and auxiliary work (if any) after the relocation plan has been given approval by a competent authority;

+ Failure to provide enough social housing for lease as regulated by law (in case the social housing construction project is located at a region where the formulation of project on construction of social housing for lease is not mandatory).

- Remedial measures:

+ Enforced submission of reports on project implementation to competent authorities if the violation of "failure to submit reports on implementation and completion of housing construction projects to competent authorities as regulated by law" is committed;

+ Enforced naming or change of project’s name or names of regions in the project in conformity with applicable regulations if the violation of "naming or changing name of a housing construction project or names of regions in a housing construction project inconsistently with regulations or without approval decisions from competent authorities" is committed;

+ Enforced nullification of modification results if the violation of "failure to obtain the approval from a competent authority before modifying one of the following contents after the state-funded housing construction project: Implementation progress, type of building, total floor area, number of apartments, rates of types of houses and total investment" is committed;

+ Enforced provision of land area for social housing construction as regulated by law if the violation of "failure to leave land area or failure to leave enough land area in a project on construction of commercial houses to build social houses as regulated by law" is committed;

+ Enforced provision of commercial housing in the project to people who do not wish to relocate or enforced negotiation on providing housing in other places with relocated people if the violation of "failure to provide commercial houses in the project for occupiers of demolished building apartments who do not wish to relocate as regulated by law" is committed;

+ Enforced arrangement and provision of land area to serve production for relocated people according to the approved relocation plan if the violation of "failure to provide land area to serve production activities of people who are relocated according to the housing construction project so as to serve the relocation in rural areas under the approved relocation plan" is committed;

+ Enforced demolition of works or work items built inconsistently with regulations or enforced modification of designed area of house and auxiliary work according to the relocation plan approved by a competent authority if the violation of "deliberately changing designed area of house and auxiliary work (if any) after the relocation plan has been given approval by a competent authority" is committed;

+ Enforced provision of adequate social housing for lease if the violation of "failure to provide enough social housing for lease as regulated by law (in case the social housing construction project is located at a region where the formulation of project on construction of social housing for lease is not mandatory)" is committed.

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