The Hung Yen Provincial Police Department reports that in recent times, numerous infrastructure development projects have been implemented and put into operation across the province, significantly contributing to local economic and social development. Consequently, the real estate market in the area has become more vibrant.
Alongside legitimate business activities, investments, and transfers that yield fair profits, many individuals have exploited the psychology and needs of residents to engage in fraudulent activities, violating the law through various schemes and tactics:
1. Capital Mobilization Scheme from Customers
According to the Provincial Police, certain individuals and organizations initiate procedures to obtain state agency permits for large-scale investment and construction projects. After securing investment approval and planning permission, these companies advertise and sell land plots without meeting the legal requirements for such transactions.
To evade legal consequences and build trust with buyers, developers typically do not collect the full land value but agree to a payment schedule, capping collections at 95%. They avoid formal sales contracts, opting instead for deposit agreements or purchase option contracts.
Once funds are collected, developers either fail to commence the project or use the land as collateral for bank loans to invest in other ventures, leaving the project incomplete. In some cases, when land prices surge, developers significantly increase sales prices, leading to disputes and losses for buyers.
Notably, some developers intentionally sell or transfer projects or company shares to multiple parties within a short period, shifting responsibility and delaying project completion or refunding buyers.
2. Sale and Transfer of Non-Residential Land as Residential Land
The Hung Yen Provincial Police indicate that these individuals often purchase agricultural land (mostly rice fields or ponds within residential areas), then illegally reclaim, develop infrastructure, subdivide, and sell it as residential land.
To gain buyer trust, these individuals submit applications to competent state agencies for land subdivision and purpose conversion. Upon receiving payment, they hire notarial services to issue notarized documents and commit to completing the transfer once approved.
In reality, the applications often fail to meet the criteria for land purpose conversion or subdivision. After receiving buyer funds, these individuals misappropriate the money for personal use, rendering them unable to refund the victims.
3. Misleading Information in Priority Housing and Land Purchases
According to the Provincial Police, these individuals approach buyers as real estate brokers or consultants, claiming connections with developers to secure prime locations at lower prices.
Some also falsely claim the ability to influence land use rights auctions to help buyers acquire desired plots. They may use forged documents or misrepresent the legal status of the land to deceive buyers.
After demanding an initial payment for sales, deposit, or capital contribution contracts, these individuals fail to fulfill their commitments, prolonging the process and embezzling buyer funds.
To Prevent Risks, the Hung Yen Provincial Police Advise Residents:
– When planning to buy or sell real estate, thoroughly research project details, legal status, and land transfer conditions.
– Conduct purchases or sign contracts only at state-licensed notary offices or local justice departments managing the property.
– Land transactions are only legal when notarized or authenticated. Power of attorney or notarized documents do not establish ownership rights and often disadvantage buyers in disputes.
– When buying or selling land through intermediaries, exercise caution and verify all information. If necessary, meet the seller directly to inspect documents and verify land details.
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