Is useful life of apartment buildings 50 years or stable term in Vietnam?

Is useful life of apartment buildings 50 years or stable term in Vietnam?

According to Clause 1, Article 99 of the 2014 Housing Law, regulations on useful life of apartment buildings are as follows:

1. 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.

Clause 3, Article 126 of the 2013 Land Law stipulates land used for limited term as follows:

3. 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.

According to this Article, the useful life of apartment buildings is usually 50 years, then based on the inspection conclusion, it can continue to live or be demolished to build a new apartment or other construction if it no longer conforms to the planning to build an apartment building.

Is useful life of apartment buildings 50 years or stable term in Vietnam? (Image from the Internet)

Is buying an apartment building considered buying land in Vietnam?

Pursuant to Clause 3, Article 49 of Decree 43/2014/ND-CP regulating use of land for construction of condominiums as follows:

3. Land use rights and the grant of certificates of land use rights and ownership of houses and other land-attached assets under projects on construction of condominiums for sale or for combined sale and lease must comply with the following provisions:

a/ Investors shall hand over the land area under common use rights of owners of apartments, offices and trade and service establishments in the condominiums (below referred to as apartments), covering the area of land for construction of condominiums, land for use as yards and for planting flowers and trees around the condominiums and land for construction of infrastructure facilities outside the condominiums which directly serve the condominiums, to apartment owners for management and use under the investment projects. Investors shall clearly determine the locations, boundaries and land areas under common use rights under the investment projects, detailed construction master plans and layout designs for submission to competent agencies for approval; and in house purchase and sale contracts and as-built drawings for carrying out the procedures for grant of certificates of land use rights and ownership of houses and other land-attached assets to the purchasers.

b/ Land use rights mentioned at Point a of this Clause are common use rights which cannot be divided. The ratio of land use rights shall be the ratio of the area of an apartment to the total floor area of all apartments in a condominium. The use and disposition of land use rights in a condominium shall be decided by the majority of persons representing the ratio of land use rights but must serve the common interests of the community and comply with law;

c/ Apartment owners shall be granted certificates of land use rights and ownership of houses and other land-attached assets for the land area under common use as prescribed at Point a of this Clause for a long and stable term; the area of apartments shall be determined based on apartment purchase and sale contracts;

d/ Upon grant of certificates of land use rights and ownership of houses and other land- attached assets to apartment purchasers, the certificates already granted to investors prescribed in Clause 2 of this Article shall be adjusted to the form of common use for the land area specified at Point a of this Clause.

The land area under housing development projects outside the areas specified at Point b of Clause 2 and Point a of this Clause shall come under the use rights of investors, for which investors shall be granted certificates of land use rights and ownership of houses and other land-attached assets.

Thus, the owner of an apartment building not only has right to own his or her apartment but also has right to use the land to build condominiums, land for use as yards and for planting flowers and trees around the condominiums and land for construction of infrastructure facilities outside the condominiums which directly serve the condominiums in Vietnam.

Best regards!