According to VCCI, the process of appraising the selling price of social housing needs to be fair and objective. Illustrative photo, source – Int
The Vietnam Chamber of Commerce and Industry (VCCI) has just provided feedback to the Ministry of Construction on the Draft Decree on the Development and Management of Social Housing (Draft).
In particular, VCCI especially emphasized some contents related to the content of the procedures for appraising the selling price, the price for renting to buy social housing that is invested in construction not using public investment capital, public union financial sources are currently prescribed in Article 32 of the Draft.
Firstly , regarding the price appraisal request dossier, currently according to Point b, Clause 2, Article 32 of the Draft, it is stipulated that the dossier of the investor requesting price appraisal must include “Legal dossier of the project (including: approval of investment policy; Land allocation decision; Approval of master plan 1/500; Construction permit and other related documents)”.
VCCI assesses that it is unreasonable to require investors to provide these documents because state management agencies already have these documents, to facilitate administrative procedures.
Therefore, VCCI proposes that the Drafting Body remove the requirement to have these documents, i.e. remove Point b, Clause 2, Article 32 of the Draft.
Secondly, regarding the appraisal procedure, currently according to the provisions of Point d, Clause 3, Article 32 of the Draft, within 60 days from the date of the deadline for appraisal, the specialized agency of the provincial People’s Committee must issue a document announcing the results of the appraisal. In particular, “Upon receipt of the document announcing the appraisal results and the appraised price is higher than the price under the contract signed by the investor, the investor shall not collect additional fees; in case it is lower, the investor must sign a new contract or adjust and supplement the appendix to the contract and must refund the difference to the buyer, renter or purchaser of the house”.
According to VCCI, this regulation needs to be reconsidered because it can be disadvantageous to investors in case the state agency does not complete the deadline for notifying the appraisal results.
“The investor has carried out the appraisal procedure, but the competent state agency, within the prescribed period, does not issue a price appraisal document, the investor has the right to sign a contract to buy and sell, rent or buy social housing with the customer according to the submitted price or the proposed price in the bidding documents (Point c, Clause 3, Article 32)”, VCCI stated its views.
Therefore, according to VCCI, the signing of a contract with the house buyer by the investor with the submitted price or the proposed price in the bidding documents is legal.
“The requirement in the Draft that investors must adjust the selling price in case it is lower than the appraisal result of the state management agency is unfounded, while the late issuance of the price appraisal document is the fault of the state agency”, VCCI assessed.
On the other hand, also according to VCCI, in terms of fairness, using the document announcing the price appraisal result of the state agency as the basis for considering the selling price, rental price for buying, but in case the investor sells at a lower price, it is not adjusted, while selling at a higher price, it must be adjusted, does not ensure fairness for the parties in the transaction.
“The requirement to sign a new contract and refund the difference to the buyer, renter or purchaser of the house will affect the performance of the contract for both the investor and the customer”, VCCI stated in the contribution to the Draft.
Based on the above arguments, VCCI proposes, to ensure reasonableness and increase responsibility from the state price appraisal agency, the Drafting Body should remove the regulation at Point d, Clause 3, Article 32 of the Draft.
Thirdly , in the case of using the winning bid price, currently according to Clause 4, Article 32 of the Draft, it is stipulated that “in case the investor uses the winning bid price, it is not necessary to re-appraise the selling price, the price for renting to buy social housing”.
Therefore, VCCI proposes that the Drafting Body specify this issue to ensure convenience during the implementation process.
