How to identify problematic real estate projects

Besides good projects, there are also many projects with slow construction or poor construction quality, losing the ability to construct, and even projects where the investor sells one apartment to many people. Therefore, before signing the contract, home buyers need to consider many issues to avoid getting caught up in bad projects.

According to the sharing of Master of Law Vu Quyet Tien, member of Ho Chi Minh City Bar Association, lawyer of Bizlight Business School, currently the form of buying and selling future housing of real estate business projects is very popular. From this perspective, before signing a contract to buy and sell future housing, investors need to pay attention to the following conditions.

The first,Through the project's legal documents provided, investors need to check whether the project is subject to a land reclamation decision or a notice of housing clearance and demolition by a competent authority.

Monday,Consider whether the project has documents on land use rights, project records, construction drawings approved by competent authorities; construction permit in cases where a construction permit is required; documents on acceptance of the completion of construction of technical infrastructure corresponding to the project progress; minutes of acceptance of the completion of the foundation of that building (for apartment buildings, mixed-use buildings for residential purposes); notice of housing eligible for sale from the Department of Construction; and some other specific conditions: financial guarantee, mortgage release.

These are necessary documents if the investor buys the real estate to live in or intends to sell the project, apartment, or land to a third party.

Due to lack of understanding of the financial capacity of investors, many home buyers are suffering heavy losses due to real estate projects being suspended for many years.

Tuesday,It is necessary to consider the transparency of project information. According to the law, all investors must publicly disclose project information on their website or the headquarters of the project management board, or at that trading floor. Investors have the right to check and ask them. Therefore, investors should not hesitate to review and request certificates before signing a home purchase contract.

In fact, the real estate market is currently forming many types of projects. Among them, there are two projects that are being strongly developed by investors: office projects and high-end resort projects. Both of these projects still sell accompanying apartments.

However, many investors only see the good things such as the utilities and location that the project brings and is "drawn" by the investor, but forget to check the legality of the project to see if it is used permanently or only within 30 - 50 years. This is a great disadvantage if investors do not consider carefully because there is no legal framework for the above two types.

Wednesday,You should check who is the guarantor, the bank that guarantees the real estate projects. That unit will have the rights and obligations in case the project investor violates a certain issue, affecting the progress or quality of the project or construction.

Thursday,You should compare project prices by asking real estate experts to avoid buying expensive and selling cheap compared to projects with similar construction quality and location.

Friday,Check all the terms in the real estate sale and purchase contract. At the same time, you should check who is the person signing the contract with the investor, whether they are qualified and have the authority to sign the contract with you or not. Avoid the situation where investors assign apartments to secondary contractors, then these contractors continue to sell to others to recover capital. Because according to current real estate business regulations, only investors are qualified and have the authority to sign real estate sale and purchase contracts with buyers.

Saturday,It is necessary to pay attention to the management and operation of apartment buildings. Because before, in 2005, the regulations were not strict on that issue, leading to many cases that have occurred and continued until now, such as the operation and management of apartment buildings, apartment maintenance fees, etc.

Wednesday,You should find large, reputable and transparent investors to invest in, because currently, only such investors have the capacity to make the project successful.

Finally, you should find real estate experts, especially lawyers who are knowledgeable about real estate, to ask about the terms of the home purchase contracts, whether they are correct or not, and whether there are any ambiguous terms that are disadvantageous to the home buyer, to avoid unfortunate risks if you encounter a problematic project, leading to disputes and lawsuits.