The Khanh Hoa Province Department of Construction has warned developers over the illegal sale of tourism properties to foreigners and has asked that they comply with the established laws.
In a document sent to 129 property developers in mid-month, the department asked developers not to sell tourism property products to foreign individuals and organisations, except in those cases in which foreign-invested firms bought tourism properties to serve as their business establishments.
The department said that tourism property was not housing, that it was not regulated by the Law on Housing 2014, but was instead regulated by the Law on Real Estate Business 2014. Accordingly, project developers could not sell tourism property products to foreign individuals and organisations, as regulated by the Law on Real Estate Business 2014.
Following the government’s decree about the development, management and use of the information system of the housing and real estate market, the department also asked property developers to regularly report their sales.
In its inspection in October, the department found that two companies, Thanh Yen Joint Stock Company (headquartered in Long An Province) and Tiger Khareal (headquartered in Nha Trang City) illegally sold 45 apartments in Nha Trang City at the Gold Coast development and 20 apartments at the Napoleon Castle project to foreigners. The provincial construction department has ordered the two companies to terminate the related purchase contracts and to return all monies to the purchasers.