Buyers who purchased units in a luxury villa complex project in the famous beach city of Nha Trang are panicking after finding out the properties have already been mortgaged by the developer.
Clients of the Ocean View Nha Trang Villa Complex in Nha Trang, Khanh Hoa Province, reported the problem to competent authorities in the hope that the problem with be resolved and justice will be served.
The provincial People’s Committee granted approval to Thien Nhan II Company in 2004 to begin construction on a 7.2 hectare piece of land at the end of Tran Phu Street in Vinh Truong Ward, overlooking the Nha Trang Bay.
The project, advertised to meet international standards, currently only contains a few complete villas scattered among unfinished structures and empty plots.
According to Nguyen Van Thong, deputy director of the Khanh Hoa Land Registration Office, the developer is only allowed to sell their villas after they have been completed and evaluated by the provincial Department of Construction.
However, Thien Nhan II chose to ignore these regulations and has already signed contracts to sell many of the uncompleted houses in a scheme to mobilize capital.
Purchasers have since uncovered that many either did not receive their property as promised or were handed the property without sufficient paperwork to prove their ownership.
The firm has been found to be selling the same piece of land to multiple clients or offering mortgaged properties.
Given the violations, the Khanh Hoa Land Registration Office stated that it will be difficult to transfer the land ownership from Thien Nhan II to their buyers.
Reports from the land office show that the company had mortgaged 40 out of 69 soon-to-be-finished villas to a bank in Ho Chi Minh City.
As the mortgage has yet to be paid, buyer of these properties are now unable to register for paperwork to prove their ownership.
Victims also say they are unable to contact the developer to discuss their contracts.
Reporters of Tuoi Tre (Youth) newspaper were unable to reach Nguyen Viet Hung, director of the company, as his provided phone number does not exist.
According to Nguyen Hong Ha, vice-president of Khanh Hoa Bar Association, developer of a project has to meet several strict requirements before being allowed to sell a house to clients, which is determined by the local department of construction.
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 mobilization of capital shall be charged in accordance with the Penal Code, Ha said.