What are the guidelines for maintenance costs of apartment buildings with multiple owners in Vietnam from January 1, 2025?
- What are the guidelines for maintenance costs of apartment buildings with multiple owners in Vietnam from January 1, 2025?
- What are the regulations on management service fees for apartment building operation in Vietnam under the Housing Law 2023?
- Vietnam: When does the Law on Housing 2023 come into force in practice?
What are the guidelines for maintenance costs of apartment buildings with multiple owners in Vietnam from January 1, 2025?
Pursuant to Article 152 of the Law on Housing 2023, there are guidelines for maintenance costs of apartment buildings with multiple owners. Specifically:
- In respect of flats and other area in apartment buildings that developers of housing investment and construction projects sell and lease-purchase, buyers and buyers/tenants shall incur maintenance costs equivalent to 2% of value of flats, area for sale and lease purchase; the maintenance costs shall be separate from sale, lease purchase value of flats, other area in apartment buildings and clearly defined under purchase, lease purchase agreements.
- In respect of flats and other area in apartment buildings which developers of housing investment and construction projects withhold from selling, lease-purchasing or have not sold, lease-purchased at the time in which apartment buildings are brought into use less the common area, developers of housing investment and construction projects shall incur maintenance costs equivalent to 2% of value of flats and the withheld area; the value shall be determined by the highest flat selling price in the apartment buildings at the time in which the apartment buildings are brought into use.
- If developers of housing investment and construction projects sign contracts for purchase, lease-purchase of flats or other area in apartment buildings before July 1, 2006 and have not charged maintenance costs, apartment building owners shall hold meetings to agree on payment rate for the maintenance costs; payments may be made on a monthly basis to accounts in credit institutions or FBBs operating in Vietnam opened by administration boards or on an case-by-case basis whenever maintenance is required.
- If developers of housing investment and construction projects sign contracts for purchase, lease-purchase of flats or other area in apartment buildings from July 1, 2006 to before the effective date hereof and the contracts for purchase, lease-purchase of flats or other area in apartment buildings do not include negotiation regarding maintenance costs, developers of housing investment and construction projects shall incur the maintenance costs; if purchase and lease purchase price under contracts for purchase, lease purchase of flats and other area in apartment buildings does not include maintenance costs, apartment building owners shall incur maintenance costs
What are the guidelines for maintenance costs of apartment buildings with multiple owners in Vietnam from January 1, 2025? (Image from the Internet)
What are the regulations on management service fees for apartment building operation in Vietnam under the Housing Law 2023?
Pursuant to the provisions of Article 151 of the Law on Housing 2023, there are regulations on management service fees for apartment building operation as follows:
- Determination of management service fees for apartment building operation shall be open, transparent, and corresponding to tasks requiring management and services necessary for each type of apartment buildings.
- Management service fees for apartment building operation shall not include premiums of fire insurance, maintenance costs, vehicle tending costs, fuel costs, energy costs, domestic water, television services, communication, wages for administration boards, other service fees for services used by apartment buildings owners and users.
Management service fees for apartment building operation shall be determined in Vietnamese currency and calculated for every square meter of usable area of flats or other area in apartment buildings.
- In respect of apartment buildings with multiple owners, management service fees shall be regulated as follows:
+ If initial apartment building meetings have not been held, management service fees shall conform to contracts for housing purchase, lease purchase;
+ If initial apartment building meetings have been held, management service fees shall be agreed upon by managing entities and apartment building meetings.
- In respect of apartment buildings with single owners, management service fees shall conform to agreement between apartment building owners and users under lease agreements; in respect of apartment buildings under public ownership, management service fees shall conform to Clause 7, Article 151 of the Law on Housing 2023.
- In respect of mixed-use apartment buildings, management service fees applicable to business and service areas and private areas used as motor vehicle parking spaces shall be determined as follows:
+ Management service fees applicable to business and service areas shall be negotiated by the parties depending on activities in business area and position of apartment buildings;
+ Management service fees applicable to private area used as motor vehicle parking spaces shall be agreed upon by the parties and may be lower than management service fees of flats in the same apartment buildings.
- In respect of apartment buildings serving accommodation, management service fees applicable to private area serving as motor vehicle parking spaces shall conform to Point b Clause 5 of Article 151 of the Law on Housing 2023.
- Provincial People’s Committees are responsible for promulgating price range of management service fees for cases below:
+ Collect management service fees for apartment buildings under public ownership in provinces and cities;
+ Act as the basis for parties to consult in negotiation of management service fees in respect of housing that are not public housing or in case of disputes regarding management service fees between entities managing apartment building operation and apartment building owners, users; in case of failure to agree on management service fees, value under price range stipulated by provincial People’s Committees shall be applied.
Vietnam: When does the Law on Housing 2023 come into force in practice?
Pursuant to the provisions of Article 197 of the Law on Housing 2023, from January 1, 2025, the Law on Housing 2023 comes into force in practice.
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