Vietnam: Can the management board of the apartment building arbitrarily decide on apartment building management and operation service fees?
- Is it mandatory to establish the Management board of the apartment building in Vietnam?
- How to organize the activities of the Management board of the apartment building in Vietnam?
- Can the management board of the apartment building arbitrarily decide on apartment building management and operation service fees?
Is it mandatory to establish the Management board of the apartment building in Vietnam?
Pursuant to Article 103 of the 2014 Law on Housing in Vietnam stipulating as follows:
Management board of the apartment building
1. If the apartment building has fewer than 20 apartments regardless of single-owner building or multi-owner building, the homeowner(s) and/or the occupiers of the apartment building shall decide whether to set up or not set up the Management board of the apartment building; if the Management board of the apartment building is set up, it shall follow the procedures below:
a) Regarding the multi-owner building, the components of the Management board shall include the representative of the owner and the occupiers;
b) Regarding the multi-owner building, the components of the Management board of the apartment building shall comply with Clause 2 of this Article.
2. Regarding the apartment building having 20 apartments or above, it is required to set up the Management board of the apartment building. The members of the Management board of the apartment building shall include apartment building’s owners, representatives of the investor(s) (if any); in case the occupiers also attend the Apartment building meeting, the members of the Management board of the apartment building may include the occupiers.
Thus, if the apartment building has fewer than 20 apartments regardless of single-owner building or multi-owner building, the homeowner(s) and/or the occupiers of the apartment building shall decide whether to set up or not set up the Management board of the apartment building.
Regarding the apartment building having 20 apartments or above, it is required to set up the Management board of the apartment building.
Vietnam: Can the management board of the apartment building arbitrarily decide on apartment building management and operation service fees?
How to organize the activities of the Management board of the apartment building in Vietnam?
Pursuant to Clause 3, Article 103 of the 2014 Law on Housing in Vietnam stipulating as follows:
Management board of the apartment building
...
3. The Management board of the single-owner building shall be organized under an autonomous model. The Management board of the multi-owner building shall be organized under model of Board of Directors of a joint-stock company or under model of Chairman of Board of Cooperatives, which has legal status, seal and exercise the rights and fulfill obligations as prescribed in Clause 1 Article 104 of this Law.
When electing or dismissing members of the Management board of the apartment building, the homeowners or occupiers of the apartment building are not required to set up a joint-stock company or a cooperative; the members of the Management board shall be elected or dismissed through the Apartment building meeting according to the Statute of management and use of apartment buildings issued by the Minister of Construction.
Thus, the organizational model of the Management board of the apartment building is based on the number of apartment owners.
Can the management board of the apartment building arbitrarily decide on apartment building management and operation service fees?
Pursuant to Article 69 of Decree No. 16/2022/ND-CP stipulating as follows:
Violation of regulation on management and use of apartment buildings of elected Boards of directors of apartment buildings
1. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed on:
a) Failing to request project developers in writing to transfer apartment building dossiers;
...
2. A fine ranging from VND 100.000.000 to VND 120.000.000 shall be imposed on:
a) Managing or using maintenance expenditure of common areas in a manner not conforming to regulations and law;
b) Repurposing common areas without permission;
c) Deciding on apartment building management and operation service fees without consulting apartment building meetings;
...
3. Remedial measures:
a) Mandated request for project developers' transferring of apartment building dossiers for violations under Point a Clause 1 of this Article;
...
n) Mandated public posting of expenses made from the maintenance expenditure for common areas of apartment buildings on notice boards of apartment buildings for violations under Point g Clause 2 of this Article;
o) Mandated preparation of annual maintenance plans conforming to regulations for violations under Point h Clause 2 of this Article.
Thus, the management board of the apartment building arbitrarily deciding on apartment building management and operation service fees without consulting apartment building meetings will be face a fine ranging from VND 100.000.000 to VND 120.000.000.
Because this is an administrative violation, the management board of the apartment building will not be able to arbitrarily decide on apartment building management and operation service fees without consulting apartment building meetings.
In addition, based on the violation of regulations on management and use of the apartment building by the management board of the apartment building to determine remedial measures corresponding to the violation according to the above provisions.
Note: The level of administrative fine mentioned above applies only to organizations. In case of individual violations, the administrative fine is 1/2 of that of organizations.
LawNet
