Is it possible to use an apartment building as an office in Vietnam? Does Management board of the apartment building have right to collect service fees in Vietnam?

Is it possible to use an apartment building as an office in Vietnam?

Currently, my husband and I in Da Nang just bought an apartment (for the purpose of storing products for business). Now, if we want to open a business company office in our apartment building, is that possible?

Reply:

Pursuant to Clause 3, Article 3 of the 2014 Housing Law, it is stipulated as follows:

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.

At the same time, Clause 11, Article 6 of the 2014 Housing Law stipulates the following prohibited acts:

11. 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.

Thus, if your family buys an apartment just to do business, as prescribed above, using the apartment as a transaction office is illegal. You can review and adjust your goals according to the regulations in Vietnam.

Is it possible to use an apartment building as an office in Vietnam? Does Management board of the apartment building have right to collect service fees in Vietnam? (Image from the Internet)

Does Management board of the apartment building have right to collect service fees in Vietnam?

Would you like to ask: Does the Management board of the apartment building have right to collect service fees, based on what terms? Thank.

Reply:

Article 104 of the 2014 Housing Law stipulates rights and responsibilities of the Management board of the apartment building as follows:

1. Regarding the multi-owner building, the Management board has rights and obligations to:

a) Remind the homeowners or the occupiers to conform to the Regulations or Statutes of management and use of the apartment building;

b) Manage and use the funding for maintenance of common areas in the apartment building as prescribed of this Law and decisions issued by the Apartment building meeting; send a report on receipts and expenditures on this funding to the Apartment building meeting;

c) Request the Apartment building meeting to pass the fees for apartment building management services;

d) Conclude an agreement on provision of apartment building management services with the investor or the unit in charge of apartment building management chosen by the Apartment building meeting as prescribed in Point d Clause 3 Article 102 of this Law.

In case the apartment building is not required to have the managing organization as prescribed in Point b Clause 1 Article 105 of this Law but it is transferred to the Management board of the apartment building by the Apartment building meeting, the Management board shall conduct the receipts and expenditures of funding provided for in the decision of Apartment building meeting;

dd) Conclude an agreement with an housing maintenance unit as prescribed in law on construction to maintain the common areas of the apartment building and observe the maintenance operation. The maintenance of common areas may be carried out by the management unit of apartment building or the housing maintenance unit as prescribed in law on construction;

e) Collect opinion and suggestion from the occupiers about the management, use and provision of apartment building services, then cooperate with related competent agencies, organizations or individual in consideration;

g) Cooperate with the local governments, neighborhoods in adoption of civilized lifestyle, maintenance of social order and security in the apartment building;

h) Conform to Operation regulation issued by the Management board of the apartment building passed by Apartment building meeting, do not dismiss or supplement members to the Management board of the apartment building itself;

i) Receive responsibility remuneration and other reasonable costs as provided for in the decisions issued by Apartment building meeting;

k) Take legal responsibility, take responsibility to the homeowners or occupiers when they exercise rights and fulfill obligations inconsistently with this Clause;

l) Perform other tasks assigned by the Apartment building meeting in accordance with regulations of law.

2. Regarding single-owner building, the Management board of the apartment building shall exercise rights and fulfill obligations as prescribed in Point a, e, g, h, I, k and l Clause 1 of this Article.

The above content is guided by Article 41 of the Regulations issued together with Circular 02/2016/TT-BXD.

And according to Clause 4, Article 42 of Circular 02/2016/TT-BXD, the apartment building management unit is responsible for: collectting expenditures on services as agreed with owners, occupants of apartment buildings; paying compensations to members of management board under decisions made by apartment building meetings;

Thus, in principle, the Management board of the apartment building will not collect service fees, only when the apartment building does not require an operating management unit and is assigned to the Board of Management by the apartment building conference. To carry out operational management, the Management board of the apartment building shall collect and spend operating management costs according to the decision of the Apartment Building Conference.

Can a mini apartment without a Certificate of home ownership be sold in Vietnam?

I have a mini apartment without a Certificate of home ownership. Only have a notarized sales contract with the investor. Now I want to resell that mini apartment, can I sell it? I hope a lawyer can advise me. Thank you!

Reply:

According to Clause 2, Article 118 of the 2014 Housing Law, the following transactions in housing are not required the Certificate (Certificate of home ownership), specifically as follows:

a) Transactions in off-the-plan housing sale or mortgage;

b) Transactions in house of gratitude gifting;

c) Transactions in state-owned housing sale or lease purchase; social housing or non-state-owned housing serving the relocation sale or lease purchase; housing sale prescribed in Clause 4 Article 62 in this Law;

d) Transactions in housing lease, lending, permission for stay, management authorization;

dd) Transactions in housing inheritance;

e) Transactions in transfer of agreement on commercial housing which is under residential construction projects including the case in which the house is received from the investor but the application for the Certificate of that house has not sent to the competent agency.

Any documentary evidence on requirements pertaining to the house to be entered into the transaction as prescribed in this Clause shall comply with regulations of the Government.

Based on the information you provided, you have a notarized sales contract with the investor but do not have a Certificate of home ownership. Thus , if your apartment is built in a housing construction project, you have right to transfer the sale contract of that mini apartment in Vietnam.

Best regards!