A complex with more than 230 apartments whose use rights are mortgaged (Photo: SGGP)
Thousands of people have filed complaints and called for intervention from authorities when the apartments and lands they purchased did not come with a certificate for land use rights, also known as a red book.
Many tenants believe they were cheated when apartments were already sold to them but the house ownership is being held as mortgage loans, making it impossible to apply for a red book.
59 apartment projects where investors have not removed the mortgage on tenants’ land use rights were recently pinpointed by the Department of Natural Resources and Environment (DONRE) of HCMC.
DONRE during a meeting with the General Department of Land Management (GDLA) proposed to instruct residents to file lawsuits against their investor if the investor fail to remove said mortgages upon being requested by authorities.
GDLA also gave instructions to the local government on how to settle other types of administrative violations relating to this matter.
Additionally, if apartment investors fail to fulfill their financial obligations, a red book cannot be issued to the projects they own.
Specifically, there are 7 complexes with 3,400 apartments where the investors have not fulfilled additional financial obligations after construction. The HCMC DONRE proposed to issue red books to house buyers and have the investors sanctioned in certain cases.
Another reason for disrupted red book applications is violations regarding the construction of buildings on the investor’s part, leading to the works not being accepted or put into use. There are 17 projects across HCMC with nearly 7,400 apartments not compliant to the blueprints.
In addition, some new types of lodging that have sparked debates in Vietnam in recent years, such as homestay and full-house rental, are also experiencing administrative roadblocks in terms of getting red books.
Specifically, there are 7 projects of this type in HCMC with more than 6,100 units, some of them belonging to real estate bigshots like Bitexco Group and Vinhome JSC.
In face of the situation, DONRE plan to summon project investors and related agencies to gather opinions, as well as direct related authorities to grant certificates to tenants in accordance with the law.