In recent months, many buyers who purchased land lots in some real estate projects in Da Nang panicked after having found out their bought properties have already been mortgaged by their developers.

The Phuong Trang Construction Development Investment Company granted authority to the Hai Hanh company to launch the sales of 7 land lots on Nguyen Sinh Sac without asking for official permission from relevant agencies in advance.

Last month, the An Binh Commercial Joint Stock Bank (ABBANK) issued a notice of default to the Ho Chi Minh City-based Tan Cuong Thanh company who fell over 2.500 days behind on its payments.

According to ABBANK, the Tan Cuong Thanh company had repeatedly failed to pay its debt, forcing this creditor to foreclose on the debtor’s mortgaged assets.

Accordingly, the lender took back the land of the Thien Park urban area project in Da Nang, developed by the debtor, to cover the remaining debt.

The confiscated assets are 4 land areas totalling about 250,000m² which are parts of the 80ha Thien Park urban area project, located in the Industrial Park for Industrial Services, Trade and Hi-tech Products in Lien Chieu District’s Hoa Hiep Bac Ward.

The project’s developer received the ownership right of the confiscated land in 2009 by the Da Nang authorities.

It is the fact that the all 4 land areas in the Thien Park urban area project are originally for the commercial and service purposes, and it has not yet to be converted into residential land.

In defiance of the national Real Estate Business Law, and despite the failure to fulfill its financial obligation for the ownership of the project and no sufficient infrastructure facilities there, the developer signed contracts to sell land to its clients in a scheme to collect money from buyers to develop its project.

As the mortgage has yet to be paid, buyer of these properties are now unable to register for paperwork to prove their ownership.

Buyers of the mortaged properties reported the problem to competent authorities in the hope that the problem with be resolved and justice will be served.

The Thien Park urban area project has been abandoned over recent years

Le Minh Dat, a land buyer from Ha Noi’s Hoan Kiem District, sadly said he has paid 90% of the total value of a 485 million VND land lot in the Thien Park urban area project, but he has not yet to receive his property as promised by the developer.

Like other ‘victims’, Dat is unable to contact the developer to discuss his contract.

Pursuant to the national laws, if the property has been mortgaged, the seller has to present a written document proving that the loan has been paid.

Any sign of fraudulent in the mobilisation of capital shall be charged in accordance with the Penal Code.

In another problematic case, in 2016, the Phuong Trang Construction Development Investment Company granted authority to the Hai Hanh company to launch the sales of 7 land lots on which infrastructure has been developed on Nguyen Sinh Sac in Lien Chieu District’s Hoa Minh Ward without asking for official permission from the city authorities in advance.

Last year, the Ministry of Construction asked the Da Nang government not to allow 4 of the above land lots to be sold to clients who bought these properties to build houses on them.

The Phuong Trang company has asked the Hai Hanh company to take back the already-sold land lots on Nguyen Sinh Sac Street, and gave compensation to buyers, but nobody accepted.

Mr Vu Quang Hung, the Director of the municipal Department of Construction, underlined an urgent need for the general public to learn about a list of projects eligible for the transfer of land ownership rights before making their purchase decisions. The names of these real estate projects are now on display on the official website of the Department.