What is the time limit for handover of apartments in Vietnam? Is it necessary to pay compensation for late handover?
What is the time limit for handover of apartments in Vietnam?
Pursuant to Article 124 of the 2014 Construction Law of Vietnam, supplemented by Point b, Clause 46, Article 1 of the 2020 Law on Amendments to Construction Law, stipulating the handover of construction works as follows:
- The handover of construction works must comply with the following provisions:
+ Construction works have been pre-acceptance tested in accordance with the construction law;
+ Safety is ensured in the operation and exploitation when the works are put into use.
+ For urban area construction investment projects, all or some works of the project may be handed over for putting into use provided that the construction investment must be completed before the handover to ensure the synchronization of technical and social infrastructure systems according to the investment phasing and approved construction designs, and their connection to the regional technical infrastructure and conformity with the approved project contents and planning.
- Project owners shall receive works according to contracts signed with contractors. Persons taking part in the handover of works shall take responsibility for products certified by them in the course of handover. If they are not use managers of works, project owners shall hand over works to use managers after organizing the pre-acceptance test of the works. The handover of construction works shall be recorded in writing.
Based on the above regulations, the apartment to be handed over must comply with the following conditions:
- The apartment has been tested and accepted in accordance with the provisions of the law on construction;
- The apartment ensures safety in operation and exploitation when the project is put into use.
Thus, it can be seen that, the law does not specify the time limit for handing over the apartment, instead the time limit for handing over and receiving the apartment will be done according to the contract signed with the contractors.
Particularly in case the investor is not concurrently the manager of the use of the apartment, the investor is responsible for handing over the apartment to the owner for managing the use of the apartment after organizing the acceptance test of the construction work.
And the handover of construction works shall be recorded in writing.
Currently, the apartment is handed over before or on time as agreed in the contract.
However, in fact, there are still apartment projects where there is a delay in handing over apartments to customers, but the investor must notify about the delay in handing over.
What is the time limit for handover of apartments in Vietnam? Is it necessary to pay compensation for late handover?
How to compensate for damage when delay in handing over the apartment?
Pursuant to Clause 4, Article 23 of the 2014 Law on Real Estate Trading in Vietnam stipulates the rights of the apartment buyer, including the right to request the seller to pay compensation for damage caused by the building are not transferred on schedule with quality and other commitment specified in the agreement.
According to the provisions of Article 434 of the 2015 Civil Code of Vietnam, the seller may only deliver the property prior to the time limit with the consent of the purchaser.
Thus, the time to be counted as late handover of the house and land is the end of the time limit for handing over the house as agreed upon or prescribed by law but the seller has not yet fulfilled the handover obligation.
The investor's delay in handing over the house falls into the case of late performance of obligations as prescribed in Article 353 of the 2015 Civil Code of Vietnam and must bear the following compensations:
- The late handover party must compensate for all damage caused by the breach of contractual obligations as agreed in the contract. Damages are determined to include both material damage and mental damage according to the provisions of Articles 360, Article 361, and Article 419 of the 2015 Civil Code of Vietnam.
- The party who is late in handing over the house and land shall also be subject to penalties for violations according to the signed contract. The penalty level for violation shall be agreed upon by the parties in the Contract according to Article 418 of the 2015 Civil Code of Vietnam.
In addition, in case the investor refuses or does not settle the compensation claim, it can initiate a lawsuit to a competent court to request settlement.
Is it associated with land use rights when buying an apartment?
According to the provisions of Clause 3, Article 126 of the 2013 Land Law of Vietnam, for projects on construction of houses for sale or for a combination of sale and rent or for lease- purchase, the land use term shall be determined in accordance with the duration of the project. Those who buy houses associated with land use rights may use land for a long and stable term.
Thus, in the case of buying a mini-apartment, it will be associated with land use rights, at this time the individual will jointly own the land use right with other buyers of the same lot.
LawNet