Photo: Xa Luan

In an effort to enhance transparency in the domestic property market, the Ministry of Construction (MoC) has passed an administrative sanctions decree concerning transaction violations in the construction and real estate sector.

Under Decree No 23/2009/ND-CP effective last month, individuals and organizations would be fined VND50-60 million (US$2,810-3,370) if they trade real estate anywhere other than on established real estate trading floors.

The same monetary penalty would be applied on sales that do not follow regulated orders and procedures.

Fines of between VND60-70 million ($3,370-3,930) would be imposed on real estate sales that were not eligible for trade. The same rate would also be applied for capital mobilization violations in the construction of new houses, new urban areas and technical infrastructure projects in industrial zones, and for any illegal transfer of those projects.

The decree also included penalties between VND10-60 million ($562-3,370) for violations relating to real-estate floor establishment, brokerage, real estate evaluation and management of real estate trading floors.

Trading floors with second violations will have their business license revoked.

Vu Xuan Thien, deputy head of the MoC Housing and Real Estate Market Control Department, said that in the beginning, individuals might continue selling real estate off the trading floor, but enterprises must complete their transactions on the floors because the decree was primarily aimed at business projects.

In the long term, all business and individual real estate projects should be traded on real estate trading floors to create more transparency in the sector, Thien said.

Trading floor transactions would provide a clearinghouse for sellers, buyers, renters and lessors, he said, adding that buyers would have good purchasing conditions and sellers would also have more opportunities to reach potential customers.

Transactions on the trading floors would also reduce the risk of real estate project trading, said Nguyen Tran Nam, deputy minister of construction.

Rol.vn - Source: Vietnam News