Paying millions USD of deposit for real estate trading is always full of risks. It is due to the lack of rules and regulations as well as sanctions.
According to Article 328 of Vietnam Civil Law, deposit for ensuring the performance of the contract before signing is only mentioned in general. However, the Law on Real Estate Trading of Vietnam is without regulations on (millions USD) “deposit”. It is a notable point leaving a big gap between business trading reality and legal basics.
There would be increasing cases taking advantage of this loophole.
Methods such as placeholder deposit agreement or capital contribution agreement would risk customers. While the Law on Real Estate Trading stipulates that after signing the contract, the investor of a future real estate business project may only receive the first payment of the customer not exceeding 30% of the contract value.
In addition, the Civil Law does not prescribe the rate or limit of deposit based on the value of the contract. But by the parties themselves. Unfortunately, this inconsistency of the legal system has created great chances for illegal sales of land. It may cause customers huge damage If losing big amount of deposit.
The receipt of great value deposits is also inconsistent with the provisions of the Law on Real Estate Trading. As mentioned above, the Law on Real Estate Business requires that investors only receive the first time deposit not exceeding 30% of the contract value. But in fact, there are many cases of selling land or houses for collecting deposits exceeding this rate. If there are any troubles on the project, customers may lose large capital flows. Or even fall into the middle of nowhere If they want to reclaim money. It is because the law now lacks sanctions and regulations on deposit acts.
(*) Reference: by Vu Le, vnexpress.net