Vietnam: What shall the investor/owner prepare when organizing the first apartment building convention?

According to Clause 5 Article 1 of Circular No. 06/2019/TT-BXD of the Ministry of Construction of Vietnam amending Article 13 of Circular No. 02/2016/TT-BXD, the investor (in the case of multi-owner apartment building) or the owner (in the case of single-owner apartment building) shall make preparations for the convention, notify the date and place and organize an official convention attended by apartment building owners and occupants. The investor or owner may organize a preparatory convention to make necessary preparations for the official apartment building convention. Preparations for the first apartment building convention shall be made as follows:

- Inspection and determination of status of representatives of apartment owners attending the convention; in the case of authorization, it is required to have a letter of authorization, which contains: full name and phone number (if any) of the authorizing person and authorized person, address of the apartment or another area in the apartment building of the authorizing person, authorization contents related to the apartment building convention, rights and responsibilities of the authorizing party and authorized party, and bears signatures of the authorizing person and authorized person;

- A draft regulation on apartment building convention;

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

- A draft regulation on election of the apartment building’s management board, proposed name of the management board prescribed in Point a Clause 1 Article 23 of this Regulation, proposed list and number of members of the management board, expected head and deputy head of the management board (if apartment building has to establish a management board); expected plan for provision of professional training in apartment building operation and management to members of the management board;

- Regarding the multi-owner apartment building, it is required to make additional preparations, including proposed prices of apartment building operation services, draft plan for maintenance of shared area of the apartment building, proposed operating unit in the cases where the apartment building has to establish a management board but the investor fails to have the managerial function or capability or has managerial function or capability but does not participate in management and authorize another unit to perform management. If the apartment building has to establish a management board, propose an organizational structure of the management board, draft operating regulation and regulation on revenues and expenditures of the management board.

- Fees for using services at swimming pools, gyms, tennis courts, spas, supermarkets and other services (if any);

- Other proposals on the management and use of apartment buildings, which need to be discussed at the first apartment building convention.

Circular No. 06/2019/TT-BXD also stipulates that the People’s Committee of the commune shall organize the first apartment building convention in one of the following cases:

- The apartment building has been transferred and put to use for more than 12 months and has at least 50% of apartments transferred but the investor fails to organize an apartment building convention and representatives of owners of transferred apartments have requested the People’s Committee of the commune in writing to organize a convention;

- The attendances are not sufficient as prescribed in Clause 2 of this Article;

- The investor is shut down due to dissolution or bankruptcy as prescribed by law.

- If the People's Committee of the commune organizes the first apartment building convention, the funding for organization of this convention shall be provided by apartment building owners and occupants.

Within 30 working days from the receipt of the written requests from representatives of apartment owners or investors, the People’s Committee of the commune shall organize the first apartment building convention. Results of the first apartment building convention organized by the People’s Committee of the commune shall be applicable to owners and occupants of apartment buildings in the same manner as the first apartment building convention is organized by an investor.

View other provisions at Circular No. 06/2019/TT-BXD of the Ministry of Construction of Vietnam, effective from January 01, 2020.

Thu Ba

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