Delayed Procedures for Issuing Certificates to Buyers: Enterprises May Be Fined Up to 1 Billion VND

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To be specific, under the provisions of Decree 91/2019/ND-CP, if a real estate business project organization does not submit documents for the procedure of issuing the Land Use Rights Certificate (GCN) for buyers, renters-buyers of houses, construction projects, or land transferees; or does not provide, or provides insufficient documents for buyers, renters-buyers of houses, construction projects, land transferees to independently submit for the GCN under the provisions of Clause 7, Article 26 of the Law on Housing and Clause 4, Article 13 of the Law on Real Estate Business for 12 months or longer, they will be penalized as follows:

- A fine of between 100,000,000 VND and 300,000,000 VND for violations involving fewer than 30 apartments, construction projects, or parcels;

- A fine of between 300,000,000 VND and 500,000,000 VND for violations involving from 30 to fewer than 100 apartments, construction projects, or parcels;

- A fine of between 500,000,000 VND and 1,000,000,000 VND for violations involving 100 or more apartments, construction projects, or parcels.

The violation period is calculated from the date the investor hands over the house, construction project, or land to the buyer, or from the point when the rentee-buyer has paid in full according to the agreement to the time of the administrative violation record.

In cases where the investor rectifies the violation after the deadline stipulated in Clause 7, Article 26 of the Law on Housing and Clause 4, Article 13 of the Law on Real Estate Business, the violation period is calculated up to the date the investor rectifies the violation.

Detailed information can be found in Decree 91/2019/ND-CP effective from January 5, 2020.

Toan Trung

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