The country's legal system has not kept pace with rapid real estate development, triggering a number of disputes between investors and customers.
There were many disputes between real estate investors – who made large profits in a short time –and home buyers, who felt that investors were not professional in their transactions, an expert said at a conference in Ha Noi yesterday.
A new residential area in west Ha Noi. The capital city has seen an increase in disputes between real estate investors and home buyers. — VNS Photo Truong Vi
Former deputy minister of Natural Resources and Environment, Dang Hung Vo singled out Le Van Luong Residential Project and Dai Thanh Apartment Building as areas where disputes had occurred over such issues as service fees and certificates of home ownership.
The Law on Apartments and other legal documents lacked regulations on building management boards and other key issues, according to Vo.
Moreover, contracts between investors and customers failed to protect the rights of home buyers or require supervision from authorities.
He proposed completing such regulations and urged investors to provide customers with legal information about projects.
State management agencies and associations should also implement drastic measures to resolve the disputes, he said.
Tran Huu Huynh, chairman of the Viet Nam International Arbitration Centre, agreed, saying the disputes would get more severe if State agencies and relating authorities did not intervene.
Lawyer Nguyen Truc Hien, director of the Viet Nam International Law Firm (Vilaf) Hong Duc, said that in several property projects, investors contributed only a small amount of the capital, while the rest was mobilised from customers and loans.
For this reason, investors were ready to run away from projects if there was a dispute, he pointed out.
Lawyer Phan Vu Anh, former director of Vinaconex's legal department, said the Government could prevent hundreds of disputes by taking measures to make home buyers feel secure and encouraging banks to pour money into property projects given the quiet real estate market and increasing bad debt.