What are the penalties for using the apartments not for residential purposes and affecting the adjacent apartment?
What is apartment building?
Pursuant to Clause 3 Article 3 of the Law on Housing 2014 of Vietnam, an apartment building is:
“3. Apartment building means any multi-storey building which has multiple apartments, public stairs, hall ways, private areas, common areas and common infrastructural works for organizations, households or individuals, including apartment buildings for residential use and mixed-use buildings for both business and residential purposes.”
Using the apartments not for residential purposes and affecting the adjacent apartment
Is it eligible for using the apartment buildings for business instead of residential purposes?
Prohibited acts stipulated in Article 6 of the Law on Housing 2014 of Vietnam include:
- Infringing the homeownership of the State, organizations, households or individuals.
- Obstructing the fulfillment of state management of housing, exercise of rights and fulfillment of obligations of the organization, household, or individual in terms of the homeownership, use of housing and housing-related transactions.
- Introducing policies on residential construction projects or residential construction projects in contravention of approved residential construction planning, residential development planning.
- Building houses on the pieces of land other than residential land; build houses in contravention of standards for design standards, housing area standards applied to each type of houses as prescribed. Applying the incorrect calculation of floor area prescribed in law on housing sale or specified in the lease purchase agreement.
- Illegal appropriation of housing areas; encroaching upon the space and facilities under common areas or ownership of other owners in any shape or form; arbitrarily change the bearing structure or change the design of private areas in the apartment building.
- Using the common areas and facilities under joint ownership or joint use for private purposes; use common areas or the areas for service provision in a mixed-use building for improper purposes against the approval of residential construction project or the approved project, unless such area is permitted to change purposes by a competent agency.
- Using mobilized capital or advance payments for housing development for improper purposes.
- The investor in a residential construction project authorizing or assigning the parties involved in investment cooperation, joint venture, association, capital contribution or other organizations, individuals to conclude agreements on housing lease, lease purchase, sale, deposit agreements on housing-related transactions or agreement on trading of land use rights in projects.
- Making transactions in housing sale or transfer of housing sale agreement, housing lease, lease purchase, gifting, exchange, inheritance, mortgage, capital contribution, lending, and permission for stay or authorization for housing management not in accordance with this Law.
- Renovating, expanding, demolishing the houses under agreements on housing lease, lease purchase, lending, permission for stay, or authorization of housing management without the consent of the homeowner.
- Using the apartments not for residential purposes; using the area for business purposes in the apartment building under approved project for trading flammable materials, explosives, providing services causing environmental pollution, noise or negative effects on the lives of households and individuals in the apartment building as prescribed in regulations of the Government of Vietnam.
- Using the separate houses for trading flammable materials, explosives, providing services causing environmental pollution, noise or other operations or negative effects on the lives of households and individuals in the apartment building as prescribed in regulations of law on requirements for business.
- Providing information about housing inaccurately, untruthfully, unconformably with regulations or requests of the competent agencies; destroy or falsify information in the database of housing managed by the competent agencies.
According to the above regulations, it can be seen that using the apartments not for residential purposes is the act that violates the current law of Vietnam.
What are the penalties for using the apartments not for residential purposes?
Violation of regulation on management and use of apartment buildings of apartment building inhabitants is stipulated in Clause 1, 2, and 3 Article 70 of Decree 16/2022/ND-CP of Vietnam, specifically:
“1. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed on:
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c) Selling hazardous, explosive commodities, providing repair services for motorized vehicles, or cattle slaughtering services;
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dd) Running business activities in areas not reserved for business activities of apartment buildings;
e) Using flats for purposes other than residential purpose.
2. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed on:
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d) Using common areas or service areas for the wrong purposes in mixed-use apartment buildings.
3. Remedial measures:
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b) Mandated relocation of hazardous, explosive commodities out of residential areas or mandated suspension of repair services for motorized vehicles or suspension of cattle slaughtering services in apartment buildings for violations under Point c Clause 1 of this Article;
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d) Mandated the use of apartment flats for residential purposes for violations under Point e Clause 1 of this Article;
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e) Mandated the correct use of common areas or service areas in mixed-use apartment buildings for violations under Point d Clause 2 of this Article.”
What are the fines for soaking or leaking water to other apartments of the building?
Pursuant to Point a Clause 1 and Point a Clause 3 Article 70 of Decree 16/2022/ND-CP of Vietnam stipulating specific fines:
"1. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed on:
a) Soaking or leaking water to apartment buildings that are not under their ownership, management, or use;
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3. Remedial measures:
a) Mandated restoration to original state for violations under Point a, Point b Clause 1, Point a, Point b Clause 2 of this Article;
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Fines mentioned above apply to organizations. Fine imposed on an individual shall equal half of that imposed on an organization for the same violation (pursuant to Point c Clause 3 Article 4 of Decree 16/2022/ND-CP of Vietnam). However, for the case in Point e Clause 1 Article 70 of Decree 16/2022/ND-CP of Vietnam, this is the fine applying to individuals.
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