Vinh City: Warning of risks when investors both mortgage banks and sell houses to people

On the morning of June 7, the Provincial People's Council's Legal Committee worked with the Vinh City People's Committee in the supervision program on the issuance of Certificates of land use rights (GCN QSD), house ownership rights and other assets attached to land. Mr. Phan Duc Dong - Member of the Standing Committee, Head of the Provincial Party Committee's Internal Affairs Committee, Head of the Provincial People's Council's Legal Committee chaired the meeting. Photo: Thanh Duy

As of April 30, 2018, the Land Use Rights Registration Office has received applications from 22 apartment building projects and 42 townhouse and villa projects, with the rate of granting certificates reaching 83.9% of the received applications.

For more information related to this issue, Mr. Le Quoc Tuan - Director of the Office of Land Use Registration of Vinh City said that this unit has discovered that some investors mortgaged apartment projects to borrow from banks, but did not release the mortgage (release the mortgage on assets currently at the bank) for 5 apartments that had been sold.

Meanwhile, the apartment buyer still completes procedures to use this apartment as collateral for another loan with the bank according to the mortgage process for future housing.

Mr. Tuan said: If not detected promptly, it will lead to a situation of "one apartment borrowed from two places" and contain many risks.

Mr. Le Quoc Tuan - Director of Vinh City Land Use Registration Office spoke at the meeting. Photo: Thanh Duy

The report of Vinh City People's Committee shows that, up to now, Vinh City has an agricultural land area of ​​more than 3,200 hectares, of which more than 2,825 hectares have been allocated and granted land use right certificates, accounting for 88.28%. Vinh City has also granted and exchanged 53.41% of the agricultural land area that needs to be granted.

For non-agricultural land, the first issuance of rural residential land reached more than 98%, equivalent to 28,437 land use right certificates, and urban residential land reached 98.15%, equivalent to 53,155 land use right certificates.

Since the implementation of the issuance and exchange of land use right certificates up to now, including reissuance after surveying the cadastral maps of 5 communes and 4 hamlets newly merged into Vinh City and reissuance due to re-recognition of residential land limits, to the form of land use right certificates, house ownership rights according to Decree No. 88/2009/ND-CP of the Government, Vinh City has issued and exchanged 84,975 residential land use right certificates, with 2,788 plots remaining to be issued.

Regarding this issue, Mr. Le Sy Chien - Vice Chairman of Vinh City People's Committee affirmed that administrative procedure reform in the land sector is of interest, especially the application of information technology in work, attaching responsibility to officials in handling records...

The Vice Chairman of Vinh City People's Committee also clarified some difficulties related to the issuance of land use right certificates in the area, such as the same property being mortgaged to the bank and sold to the people. In particular, the issue of issuing land use right certificates in this local urban area project is also difficult because the investor made mistakes compared to the original project.

“The project stipulates that houses must be built for sale, but the investor does not build houses but secretly sells land to people. People build houses themselves and then forge documents issued by the investor,” Mr. Chien cited, adding that construction that is not in accordance with the planning also happens a lot.

Vice Chairman of Vinh City People's Committee Le Sy Chien speaks at the meeting. Photo: Thanh Duy

Concluding the meeting, Mr. Phan Duc Dong - Member of the Standing Committee, Head of the Internal Affairs Committee, Head of the Legal Committee of the Provincial People's Council acknowledged the achievements of Vinh City in the work of granting certificates of land use rights, house ownership rights and other assets attached to land.

The head of the monitoring delegation requested Vinh City to strengthen the implementation of propaganda, dissemination and education on land law; promote the issuance and reissuance of land use right certificates, especially for agricultural land; proactively review and resolve related issues to limit complaints and denunciations in this field; improve the responsibility and ethics of public servants, especially in wards and communes; assign targets to the People's Committees of wards and communes in reviewing and appraising dossiers for new issuance and reissuance of land use right certificates.

In particular, the Head of the Provincial People's Council's Legal Committee requested Vinh City to urge real estate enterprises to coordinate in implementing procedures for granting land use right certificates, house ownership rights and other assets attached to land to ensure people's rights; strengthen the work of building a land database; direct wards and communes to review types of land allocated beyond their authority...