What is the maintenance of apartment buildings in Vietnam? How to manage and use funding for maintenance of shared areas of apartment buildings in Vietnam?
What is the maintenance of apartment buildings in Vietnam?
Pursuant to Clause 1, Article 11 of the Regulation promulgated together with Circular No. 02/2016/TT-BXD stipulating as follows:
Maintenance of apartment buildings
1. Maintenance activities include quality inspection, monitoring and assessment, minor repairs, regular repairs and major repairs to construction work of apartment building; inspection and maintenance of fire and explosion prevention and combat system; replacement of spare parts or equipment commonly used in apartment buildings and complexes.
2. Apartment building owners shall be responsible for carrying out maintenance of privately-owned portions and make financial contributions to the maintenance of shared area of apartment building according to the Law on Housing and this Regulation.
If any damage caused to privately-owned portions has negative effects on other owners, the owner of such damaged portions should carry out repairs to such damage; if the owner fails to carry out the repairs, the managing unit or person tasked with managing the apartment building has the right to temporarily suspend or request service providers to temporarily suspend supply of electricity, tap water to such privately-owned portions; if some damage caused to shared portions lies within the privately-owned portion, the owner of the privately-owned portion should create favorable conditions for the managing unit, construction units to repair such damage.
3. Maintenance of apartment building’s construction work shall be carried out by qualified units as prescribed in the Law on Construction; Maintenance of apartment building’s equipment system shall be performed by qualified units in proportion to maintenance work. The managing unit may be hired to carry out the maintenance work if qualified.
4. If the first apartment building meeting has not yet been organized, the maintenance of shared area of apartment building shall be carried out according to the maintenance procedures as prescribed in Points b and c, Clause 2, Article 5 and this Regulation.
5. If the first apartment building meeting has been organized, the maintenance of shared area of multi-owner apartment building shall be carried out according to the maintenance procedures as prescribed in Points b and c, Clause 2, Article 5 and this Regulation and annual maintenance plan passed by the apartment building meeting as prescribed in this Regulation; in case of irregular damage or damage caused by natural disasters, conflagration, the Management Board shall make decisions on maintenance according to this Regulation and relevant law provisions but a report should be given in forthcoming meetings.
6. Maintenance of shared area of apartment building shall be carried out according to provisions set out in Section 4, Chapter III hereof.
Thus, maintenance of apartment buildings includes the following activities:
- Quality inspection, monitoring and assessment, minor repairs, regular repairs and major repairs to construction work of apartment building;
- Inspection and maintenance of fire and explosion prevention and combat system;
- Replacement of spare parts or equipment commonly used in apartment buildings and complexes.
What is the maintenance of apartment buildings in Vietnam? How to manage and use funding for maintenance of shared areas of apartment buildings in Vietnam?
How to manage and use funding for maintenance of shared areas of apartment buildings in Vietnam?
Pursuant to Article 109 of the 2014 Law on Housing in Vietnam stipulating as follows:
Management and use of funding for maintenance of shared areas in the multi-owner building
1. Regarding the funding for maintenance prescribed in Clause 1 Article 108 of this Law, within 07 days, from the day on which the service fees are collected from the buyers for apartments or other areas in the apartment building, the investor shall send it to the savings account opened in a credit institution operating in Vietnam for management and notify the housing authority of province.
Within 07 days, from the day on which the Management board of the apartment building is established, the investor shall transfer the maintenance funding including interests to the Management board in order to manage and use as prescribed in this Law and notify the housing authority of province; if the investor fails to transfer that funding, the Management board of apartment building entitled to request the People’s Committee of the province where the apartment building is located to enforce the transfer as prescribed in regulations of the Government.
2. The maintenance funding prescribed in Article 108 of this Law is only used for maintenance of the shared areas of the apartment building, neither used for management of apartment building nor other purposes; in case the apartment building is subject to the demolition and the maintenance funding still remains, the remaining funding shall be used for the relocation or transferred to the new maintenance funding for the shared areas of the new apartment building.
3. The Management board of apartment buildings shall manage and use the maintenance funding for proper purposes or works according to the plan for maintenance approved by the Apartment building meeting annually. The use of the funding for maintenance of shared areas is required invoices with payment and settlement as prescribed in law on finance and reported to the Apartment building meeting.
The members of the Management board of apartment building using the funding in contravention of Clause 2 of this Article and this Clause shall take legal responsibility and pay compensation against damage.
4. The management and use of the portion of maintenance funding prescribed in Clause 5 Article 108 of this Law:
a) The portion of maintenance funding for the shared areas of the apartment building and the apartments shall be transferred into the account opened by the Management board of apartment building for management and use as prescribed in this Article;
b) The portion of maintenance funding for the shared areas of the business area, the owners of that business area shall manage and use it themselves.
Thus, the management and use of funding for maintenance of shared areas of apartment buildings shall comply with the above provisions.
How much money does the investor have to pay to maintain the shared area of the apartment building that the investor has sold or leased out?
According to Clause 1, Article 108 of the 2014 Law on Housing in Vietnam as follows:
- Regarding apartments or other areas in the apartment building which are sold, or leased and sold by the investor, the investor must pay 2% of value of the apartments or other areas; this amount of money shall be included in the selling price or lease purchase price paid by the buyer or lessee when transfer the apartments or other area, which is stated in the agreement;
- Regarding apartments or other areas in the apartment building which are not sold, or lease and sold by the investor or have been not sold, or leased and sold up to the date on which the apartment building is put into operation, except for the shared areas, the investor must paid 2% of value of the remaining apartments or areas; this value shall be determined according to the highest selling price of apartments in the apartment building.
According to the above regulations, regarding apartments or other areas in the apartment building which are sold, or leased and sold by the investor, the investor must pay 2% of value of the apartments or other areas to serve the maintenance of the shared area.
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