Customers left confused and stranded as Cocobay unilaterally terminates contract.

Thành Đô Development and Construction Investment Joint Stock Company – Investor of Cocobay Da Nang Project – has recently announced the unilateral termination of contracts with customers in this project.

According to the announcement, customers must hand over all legal documents related to the real estate, assets received according to the handover minutes to Thành Đô Company within 15 days from the date of the announcement, as well as cooperate in liquidating the sales contracts.

The reason for the unilateral termination of the contract, according to Thành Đô Company, is due to the restructuring process and preparations for launching the project in the second quarter of 2024. Extending the sales contracts with customers during this time was undesirable.

Overview of Cocobay project. Photo: Hồ Giáp

As a customer who invested in a condotel apartment in this project since 2019, Mr. Tuấn Hiền (Ho Chi Minh City) said that there are two options when liquidating the contract: customers can receive a condominium contract or receive a refund.

Mr. Hiền shared that he signed the liquidation contract in February 2023. According to the contract, the company will refund the money to customers within 120 days from the date of signing the liquidation contract. If the time is exceeded, the company must refund the entire file and the original contract. However, the investor did not fulfill the commitment.

“Up to now, more than a year has passed, and the company has not paid me a single dong. I asked them to return the contract to me, but Thành Đô Company did not respond. The investor announced the liquidation but did not have any money to pay to customers, so what’s the point of the announcement?” Mr. Hiền expressed his frustration.

“I have contacted them many times to request payment, but only received promises like ‘it will be considered, arranged, and paid as soon as there is money’ without specifying when,” Mr. Hiền said.

Ms. M.L. – another customer – said she was very surprised to receive the unilateral termination notice from Thành Đô Company.

According to her, the announcement showed the “disrespect” of the company towards customers.

Thành Đô Company’s unilateral termination notice causes concern to customers. Photo: Hồ Giáp

According to the plan proposed by Thành Đô, when liquidating the contract, customers can receive an unfinished condominium apartment which is promised to be delivered by 2025. If anyone does not accept this option, they will receive a refund.

Ms. L. does not accept the options proposed by Thành Đô Company. She explained that customers have invested in the project since 2016, and after 8 years, they have not received any houses. Therefore, they cannot believe in the company’s promise to deliver the houses next year.

As for the option to receive a refund, the company has not specified a repayment deadline, only answering “when we have the money, we will repay it.”

“For the past 7-8 years, we have invested capital and paid interest to the bank. Now, according to the plan that Thành Đô proposed, we will lose both the capital and the interest, without any house or contract. In the end, we will be left with nothing. The unilateral termination is no different from removing the owners from the project,” Ms. L. said.

Having experienced the same situation, Ms. T.H. expressed her frustration: “Although we have invested and waited for 8 years, the project has been partially completed and put into commercial operation. However, with Thành Đô Company’s announcement, customers suddenly get expelled from the project.”

Hồ Giáp – Diệu Thùy