Can owners of mixed-use areas participate in apartment building conferences in Vietnam? How long is the useful life of an apartment building in Vietnam ?

Is it permissible to rent an apartment to establish a company office in Vietnam?

Our company is operating in Can Tho. We have rented an apartment on the ground floor of the apartment building. However, when conducting business registration (opening a company office), the Business Registration Office replied that they did not allow business registration in the apartment. Is it correct?

Answer:

Pursuant to Clause 11 Article 6 of the Law on Housing in 2014 stipulating prohibited acts as follows:

"Using the apartments not for residential purposes"

However, pursuant to Clause 3 Article 3 of the Law on Housing in 2014, 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.

Therefore, there are 02 types of apartment building, which are:

- Apartment buildings for residential use.

- Mixed-use buildings for both business and residential purposes.

As regulations above, it is not in accordance with the law that the Business Registration Office refuses to grant business registration in the apartment without considering the types of apartment you are renting.

If your apartmnet building is a mixed-use building, you need to present documents proving that the apartment building you are using is a "mixed-use apartment building" to be considered and accepted by the Business Registration Office.

Can owners of mixed-use areas participate in apartment building conferences in Vietnam?

Does the owner of a commercial or offices in an apartment building with mixed-use purposes have the right to attend an apartment building conference? Is it possible for them to be elected as a board member?

Answer:

Pursuant to Clause 1 Article 102 of the Law on Housing in 2014 stipulating as follows:

Apartment building meeting is a meeting between owners or occupiers of the apartment building if the apartment building’s owners do not attend.

Pursuant to Clause 13 Article 3 of the Law on Housing in 2014 and Clause 7 Article 3 of the Regulation on management and use of apartment buildings issued together with the Circular 02/2016/TT-BXD stipulating as follows:

- Apartment owner means the owner of an apartment or the owner of other areas in an apartment building.

- Apartment building owner refers to owners of apartments and owners of space other than apartments within an apartment building.

As regulations above, owners of mixed-use areas can participate in apartment building conferences in Vietnam.

How long is the useful life of an apartment building in Vietnam?

Does the apartment have a regulation on ownership period? If the apartment's useful life is expired, how will the housing arrangement for the owners be arranged? Thank you!

Answer:

Pursuant to Clause 3 Article 126 of the Law on Land in 2013 stipulating land used for limited term as follows:

The term for land allocation or land lease to organizations for the purpose of agriculture, forestry, aquaculture or salt production; to organizations, households or individuals for the purpose of trading and services or for non-agricultural production establishments; to organizations for implementing investment projects; to overseas Vietnamese and foreign-invested enterprises for implementing investment projects in Vietnam, shall be considered and decided on the basis of the investment projects or applications for land allocation or land lease, but must not exceed 50 years.

For large investment projects with slow recovery of capital, projects in areas with difficult socio-economic conditions or with especially difficult socio-economic conditions which require a longer term, the term of land allocation or land lease must not exceed 70 years.

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.

At the expiry of the term, if the land users still have land use needs, the State shall consider an extension which must not exceed the term prescribed in this Clause.

Pursuant to Clause 1 Article 99 of the Law on Housing in 2014 stipulating useful life of apartment buildings as follows:

The useful life of an apartment building is determined according to the class of the construction and conclusion on quality assessment provided by the housing authority of province where the apartment buildings prescribed in Clause 2 of this Article are located. The People’s Committee of the province shall grant funding to carry out the housing quality assessment.

Pursuant to Clause 2 and 3, Article 99 of the Law on Housing in 2014 stipulating cases of expiration of apartment buildings as follows:

2. When the useful life of the apartment building expires as prescribed in law on construction or the apartment building is seriously damaged, or in danger of collapse, or unsafe for its occupiers, the housing authority of province shall carry out the housing quality inspection following procedures below:

a) In case the apartment building is still quality and safe for occupiers, its owner(s) entitled to use it for a period stated in the conclusion, except for cases prescribed in Clause 2 and Clause 3 Article 110 of this Law;

b) In case the apartment building is seriously damaged, in danger of collapse, or unsafe for its occupiers, the housing authority of province shall issue the conclusion on housing quality inspection and send a report to the People’s Committee of the province, then send a notification to the homeowner; the content of the notification must be disclosed on the website of the People’s Committee and the housing authority of province, and by means of local mass media.

The owner(s) of the apartment building must demolish the apartment building to renovate or rebuild a new apartment building or transfer it to the competent agency to demolish or rebuild another construction as prescribed in Clause 3 of this Article.

3. Any apartment building and the piece of land on which an apartment building is located prescribed in Point b Clause 2 of this Article shall follow the procedures below:

a) In case the piece of land on which the apartment building is located is still conformable with the planning for housing construction, the owner(s) is/are entitled to renovate or rebuild a new apartment building as prescribed in Section 2 of this Chapter;

b) In case the piece of land on which the apartment building is located is no longer conformable with the planning for housing construction, the owner(s) must return this apartment building to the competent agency in order to demolish and rebuild another construction according to the approved planning;

c) In case the owner(s) of the apartment building fails to implement the decision on demolition or return the apartment building, the President of the People’s Committee of the province shall enforce the housing demolition or enforce the relocation;

d) The settlement of dwelling provided for the owners of the apartment building which is demolished shall comply with Article 116 of this Law.

In case the apartment building is demolished to rebuild a new apartment building, the owners are entitled to keep using the piece of land on which that apartment building is located; in case the apartment building is demolished to build another construction, the settlements of the piece of land on which that apartment building is located shall comply with regulations of law on land.

Pursuant to Article 116 of the Law on Housing in 2014 stipulating housing relocation as follows:

1. The relocation for the owners having the apartment building subject to demolition shall be carried out as follows:

a) In case the owners do not wish to relocate in the same location, they shall be allocated housing or residential land for relocation according to conditions of the local governments as prescribed in Article 36 of this Law;

b) In case the owners wish to relocate in the same location, they shall be allocated new houses whose areas are the same or bigger than the areas of old houses.

In case the State invests in renovation and reconstruction of apartment buildings but there is difference in value between old houses and new houses, the payment for difference shall be carried out in conformity with the approved plan for relocation; if the real estate enterprise and the owner agree to invest in renovation and reconstruction of apartment buildings, the difference shall be paid according to agreement between contracting parties;

c) The housing relocation shall be carried out according to agreements on housing lease or lease purchase concluded between the people qualified for relocation and the agency in charge of relocation if the relocation is invested by the State; or concluded with the investor in the project if the relocation is invested the real estate enterprise;

d) Apart from the relocation prescribed in this Clause, the people qualified for relocation may be paid the compensation as prescribed in law on compensation, or relocation.

2. The relocation applied to the owners whose apartment buildings subject to demolition to build another construction shall be carried out as prescribed in Article 36 of this Law.

3. In case the State invests in renovation and reconstruction of apartment buildings, the investor must provide temporary accommodation or pay money for the people qualified for relocation to manage their accommodation during the renovation or reconstruction period; in case the real estate enterprise and the owner jointly invest in renovation and reconstruction of apartment buildings, contracting parties shall agree about the provision accommodation of the owners during the renovation or reconstruction period.

4. The Government shall provide guidance on the apartment building demolition for renovation and reconstruction of apartment buildings and the relocation.

Thus, the apartment building does not have specific regulations on the number of years of ownership but is determined on the basis of the construction grade and the quality inspection conclusions of the housing management agency where the apartment building is located. In case the apartment building expires, the owner of the apartment building will be provided with a place to live according to the above provisions.

Best regards!