Vietnam: What are the regulations on paying the maintenance funding of common areas in the multi-owner apartment building? What are the regulations on managing and using the maintenance funding of common areas in the multi-owner apartment building?
- What are the regulations on paying the maintenance funding of common areas in the multi-owner apartment building in Vietnam?
- What does the maintenance of apartment buildings in Vietnam include?
- What are the regulations on managing and using the maintenance funding of common areas in the multi-owner apartment building in Vietnam?
- What are the regulations on managing common areas in the multi-owner apartment building in Vietnam?
What are the regulations on paying the maintenance funding of common areas in the multi-owner apartment building in Vietnam?
Pursuant to Clause 1, Article 108 of the 2014 Law on Housing, the maintenance funding of common areas in the multi-owner apartment building shall comply with the following 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; 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 leased 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 common areas, the investor must be paid 2% of the value of the remaining apartments or areas; this value shall be determined according to the highest selling price of apartments in the apartment building.
What does the maintenance of apartment buildings in Vietnam include?
Pursuant to Clause 1, Article 11 of the Regulation promulgated together with Circular 02/2016/TT-BXD, 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.
What are the regulations on managing and using the maintenance funding of common areas in the multi-owner apartment building in Vietnam?
Pursuant to Article 109 of the 2014 Law on Housing, the regulations on managing and using the maintenance funding of common areas in the multi-owner apartment building in Vietnam are:
- Regarding the funding for maintenance prescribed in Clause 1 Article 108 of 2014 Law on Housing, 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 the 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 the 2014 Law on Housing 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.
- The maintenance funding prescribed in Article 108 of the 2014 Law on Housing is only used for maintenance of the common areas of the apartment building, neither used for management of the 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 common areas of the new apartment building.
- The Management board of the apartment building 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 common 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 the 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.
- The management and use of the portion of maintenance funding prescribed in Clause 5 Article 108 of the 2014 Law on Housing:
+ The portion of maintenance funding for the common areas of the apartment building and the apartments shall be transferred into the account opened by the Management board of the apartment building for management and use as prescribed in this Article;
+ The portion of maintenance funding for the common areas of the business area, the owners of that business area shall manage and use it themselves.
What are the regulations on managing common areas in the multi-owner apartment building in Vietnam?
Pursuant to Clause 5, Article 7 of the Regulation promulgated together with Circular 02/2016/TT-BXD, the regulations on managing common areas in the multi-owner apartment building in Vietnam are:
- If common areas of the office, service, and commercial areas (hereinafter referred to as ‘the functional area’) and residential apartment buildings are undefinable, the owners thereto shall be responsible for managing such areas together.
- If the common area is separately definable, the common area of the residential apartment shall be managed by owners of residential apartment buildings and the common area of the functional area shall be managed by the managing unit or by owners of this functional area if the managing unit is not required by the apartment building. The management of this common area is instructed in Clause 4, Article 7 of Regulations issued together with Circular 02/2016/TT-BXD.
For common areas of an entire multi-owner apartment building, all the apartment building owners shall be responsible for managing such areas together; the management of such areas is instructed in Clause 4, Article 7 of Regulations issued together with Circular 02/2016/TT-BXD.
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