Fine up to 1 billion VND when handing over uncompleted housing

Decree 16/2022/ND-CP has increased the maximum fine for violations in real estate construction and business activities up to 1 billion VND (previously the maximum fine in the field of business real estate is 300 million dong). Notably, a fine of 1 billion VND applies to the act of handing over houses and construction works to customers before the acceptance test has been completed.

Fine up to 1 billion VND when handing over uncompleted housing

A fine of up to 1 billion VND when handing over a house that has not been completed and accepted (Artwork)

Specifically, in Clause 4, Article 58 of Decree 16/2022/ND-CP stipulates:

A fine ranging from VND 800 million to VND 1 billion shall be imposed on the investor of a real estate business project that hands over houses or construction works to customers before completing the construction of houses and construction works. construction and technical and social infrastructure works according to the approved project schedule, not yet connected to the general infrastructure system of the area, not yet completed the entire exterior ( for the case of handing over of houses or raw construction works) or the acceptance test has not been completed or there is no written approval of the test and acceptance results from the competent authority to bring the housing works, social infrastructure works into operation. used as specified.

(Previously, according to Decree 139/2017/ND-CP , the fine for this act was from 270 million VND to 300 million VND).

Thus , from January 28, 2022, the investor of a real estate business project hands over the house, the work has not been completed for acceptance or has not yet received a written approval of the test and acceptance results from the competent authority. Housing works, social infrastructure works that are put into use according to regulations for customers will be heavily fined from VND 800 million to VND 1 billion.

In addition to the above-mentioned fine, the investor is also subject to the remedial measure of forcibly stopping the handover of the house or construction work, completing the construction, or forcing the completion of pre-acceptance test or obtaining written approval. acceptance test results of competent state agencies according to regulations.

In addition, the above fine level also applies to a number of other acts such as:

- Transferring the whole or part of the project against the prescribed procedures;

- Transfer of the whole or part of the project without fully ensuring the requirements or conditions as prescribed;

- In case of transferring the whole or part of a project without a certificate of land use right, when there is a dispute over the land use right or it is distrained to ensure judgment enforcement, the transferee is not is a real estate enterprise or has insufficient financial capacity as prescribed, it shall be sanctioned according to the provisions of the Government's Decree on sanctioning of administrative violations in the land sector;

- Raising capital improperly;

- Using capital mobilized from organizations or individuals or advance money from the purchaser, the lessee or the lessee to purchase real estate formed in the future for improper purposes.

Decree 16/2022/ND-CP takes effect from January 28, 2022.

Jewel

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