Illegal Sale of Over 1,000 Apartments in Binh Duong Province, Vietnam
On August 1st, representatives from the Binh Duong Province Department of Construction revealed that the Contentment Plaza commercial and residential project (also known as Roxana Plaza) has been subject to an inspection by the Provincial Inspectorate. The project, developed by Real Estate Investment Trading Service Co., Ltd., was found to have numerous violations, including the illegal sale of over 1,000 apartments.
On June 15th, Mr. Nguyen Van Loi, Secretary of the Provincial Party Committee, chaired a regular meeting with citizens and instructed the Department of Construction and the People’s Committee of Thuan An City to establish a special task force to monitor and guide the resolution of this issue. A report on the progress is expected to be submitted to the Provincial Party Committee Standing Committee by the end of August.
According to the inspection conclusions, the Roxana Plaza project, located in Vinh Phu Ward, Thuan An City, spans an area of 8,423 square meters and comprises several components, including a commercial center, office space for lease, and luxury apartments.
The developer, Real Estate Investment Trading Service Co., Ltd., entered into a cooperation agreement with Mr. Nguyen Anh Dao for joint investment and profit sharing. Subsequently, the company signed a contract with Naviland Joint Stock Company, which holds 51% of the shares in Real Estate Investment Trading Service Co., Ltd. As per the agreement, Naviland was authorized to invest in and distribute the project’s products through real estate distribution and brokerage companies to mobilize capital as regulated. This authorization remained valid until the completion of the transfer procedure from Real Estate Investment Trading Service Co., Ltd. to Naviland.
The project, with its two high-rise towers, has been left idle.
However, inspections revealed that since 2017, Naviland had signed contracts for the transfer of 1,082 apartments to customers in the form of apartment sale and purchase contracts, even though Real Estate Investment Trading Service Co., Ltd. had not been granted a certificate of eligibility for selling future homes, which is a violation of regulations. Despite this, Naviland has not paid the fines imposed as of yet.
In late 2021, Real Estate Investment Trading Service Co., Ltd. submitted a request to the Department of Construction for confirmation of eligibility to sell future homes in the Roxana Plaza project. However, due to ongoing complaints from citizens regarding their contracts with Naviland, the Department has not granted this permission. The Department has stated that before considering the developer’s request to mobilize capital, the three parties involved—Real Estate Investment Trading Service Co., Ltd., Naviland, and the citizens who purchased the apartments—must resolve all complaints and petitions.
A Series of Violations Remain Unaddressed
According to the authorities, Real Estate Investment Trading Service Co., Ltd. has committed violations in the implementation of this real estate business project. The Provincial People’s Committee has issued an administrative sanction decision, fining the company VND 275 million for project delays.
Despite the suspension of construction, the company had mobilized capital without meeting the necessary conditions, leading to customer dissatisfaction and complaints to the authorities. This situation has also resulted in gatherings and protests, causing social order and security concerns in the area.
The two apartment towers seen from above.
The inspection also concluded that the signing of apartment sale and purchase contracts by the authorized party before obtaining the necessary infrastructure inspection and approval, as well as confirmation of eligibility to sell future homes, was not in line with regulations.
Furthermore, the inspection suggested that the project, with approximately 80% completion, has a high likelihood of being finished. The Provincial Inspectorate recommended that the Provincial People’s Committee instruct the investor to continue implementing the project as per the approved plan and to honor the apartment sale contracts signed by Naviland with customers based on the authorization granted by Real Estate Investment Trading Service Co., Ltd.
Regarding the handling measures, Real Estate Investment Trading Service Co., Ltd. must resume the project according to the approved schedule and fulfill the contracts signed by Naviland under its authorization. Naviland is also expected to comply with real estate business laws and pay the fine of VND 275 million as per the Provincial People’s Committee’s decision.
This project has been left idle for several years, and the developer has not taken serious action to address the inspection conclusions.
