Vietnam: What are the conditions for organization of the first apartment building convention?

Conditions for organization of the first apartment building convention are specified in Circular No. 02/2016/TT-BXD and amended in Clause 5 Article 1 of Circular No. 06/2019/TT-BXD of the Ministry of Construction of Vietnam as follows:

- The apartment building convention shall be organized within 12 months from the date on which such apartment building is transferred and put to use and has at least 50% of its apartments transferred to buyers or buyers/tenants (excluding the apartments that are not sold or yet to be sold or leased out under a lease-purchase agreement by the investor); by the aforementioned deadline, if the apartment building has not had at least 50% of apartments transferred, the apartment building convention shall be organized until at least 50% of apartments are transferred;

- The apartment building convention shall be organized if at least 50% of apartments of each building in a cluster have been transferred to buyers or buyers/tenants (excluding the apartments that are not sold or yet to be sold or leased out under a lease-purchase agreement by the investor) and at least 50% of representatives of owners of apartments of each building have put their apartments into use and agree to add the buildings to the apartment building complex.

On the other hand, conditions for attendances at the first apartment building convention are specified in Circular No. 06/2019/TT-BXD as follows:

- There must be at least 50% of representatives of owners of transferred apartments at the apartment building convention. If the attendances are not sufficient as prescribed, within 07 working days from the date on which the date of the apartment building convention is specified in the notice of convention, the investor or representative of the apartment owner shall request the People’s Committee of the commune where the apartment building is located to organize an apartment building convention;

- Regarding the apartment building complex convention, there must be a sufficient number of persons agreeing to add the buildings to the apartment building complex. If the attendances are not sufficient as prescribed, within 07 working days from the date on which the date of the apartment building convention is specified in the notice of convention, the investor or representative of the apartment owner shall request the People’s Committee of the commune to organize an apartment building convention, except for the case where an apartment building convention is organized at a building in the complex as prescribed above.

Circular No. 06/2019/TT-BXD also stipulates that the first apartment building convention shall decide:

- The regulation on apartment building convention (including first, annual and irregular convention);

- Regulation on election of apartment building’s management board, name of the management board, number and list of members of the management board, head and deputy head of the management board (if the apartment building has established a management board); plan for provision of professional training in apartment building operation and management to members of the management board;

- Amendments to regulations on management and use of apartment buildings (if any);

- Contents specified in Point d Clause 3 of this Article; regarding prices of apartment building management services, they shall be decided by the apartment building convention according to this Regulation and by negotiation with the operating unit;

- Fees paid by owners and occupants of apartment buildings during the use thereof;

- Other relevant contents.

View more details at: Circular No. 06/2019/TT-BXD of the Ministry of Construction of Vietnam takes effect from January 01, 2020.

Thu Ba

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