Ownership and management of parking lot of apartment buildings in Vietnam

What is apartment building?

Pursuant to the provisions of the Law on Housing 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.

Ownership and management of parking lot of apartment buildings in Vietnam (Internet image)

Ownership and management of parking lot of apartment buildings in Vietnam

Ownership and management of parking lot of apartment buildings in Vietnam are specified in Article 8 of Circular 02/2016/TT-BXD and Article 2 of Circular 07/2021/TT-BXD, specifically as follows:

(1) Parking lot of an apartment building is constructed on the basis of construction standards, norms and approved designs. Parking lot may be located at basement floor or ground floor or in other areas inside or outside an apartment building and should be specified in the purchase and lease purchase contract; Parking lot should be used purposefully according to contents of the approved project and provisions prescribed in Article 101 of the Law on Housing 2014.

(2) For single-owner apartment building, the parking lot shall belong to the ownership and management of the apartment building owner but be used in accordance with contents of the approved project, the Law on Housing 2014 and Circular 02/2016/TT-BXD. For an apartment building that requires the managing unit, the managing unit shall manage this parking lot; For an apartment building without a managing unit, owners themselves or other units shall manage this parking lot.

(3) Shared parking lot as prescribed in Point a, Clause 1, Article 101 of the Law on Housing 2014 shall be managed by the managing unit or by the Management Board or other units on behalf of owners (in case the managing unit is not required by such apartment building), or by owners themselves or other units to be hired (in case neither the managing unit nor the management board is not available).

(4) For auto parking lot intended for apartment building owners as prescribed in Point b, Clause 1, Article 101 of the Law on Housing 2014, execute following provisions:

- Persons who purchase or lease purchase an apartment or other space within the apartment building (hereinafter referred to as 'the buyers') decide to purchase or lease auto parking spaces intended for apartment building owner according to the Law on Housing 2014.

If an apartment building has sufficient auto parking spaces for all the apartments and the buyer needs to purchase or lease auto parking spaces in this parking lot, the investor shall make arrangements but ensure that the number of parking spaces purchased or leased by each apartment owner or space owner (owner of other space within the apartment building) should not exceed the number of parking spaces designed for each apartment or a privately-owned portion of an apartment building under the approved project.

- If an apartment building has insufficient auto parking spaces for each apartment, the investor shall make arrangements on the basis of negotiations among buyers;

- Purchase or lease of auto parking spaces as prescribed in Points a and b, Clause 4 of Article 8 of Circular 02/2016/TT-BXD may be specified in the apartment purchase and lease purchase contract or in a separate contract; parking rent shall be paid in a monthly or periodical basis; the sum of money for purchase of parking space shall be paid once at a time or by installments as agreed by the parties. In case parking spaces are rented, obligations for paying fees for management and car keeping services shall be negotiated and agreed by the parties in the contract for parking rent; in case parking spaces are purchased, parking space buyers shall pay fees for management and car keeping services according to laws and the agreement with service providers;

- If a parking space buyer needs to transfer or rent out this parking space, such transfer or rent out is only be made with owners or occupants of such apartment building or with the investor;

- If the buyers do not purchase auto parking spaces as prescribed in Clause 4 of Article 8 of Circular 02/2016/TT-BXD, the parties should specify in the apartment purchase and lease purchase contract that this space belongs to the ownership and management of the investor and the investor shall not include expenses for investment and construction of this space in sale price, rents of the apartment; if the buyers need to purchase or lease auto parking spaces, the investor shall calculate sale price and rents of parking spaces independent of sale price, rents of the apartment.

(5) Management of public parking lot (parking lot designed for people other than apartment building owners or occupants) is prescribed as follows:

- If owner of the functional area purchases the public parking lot from the investor, this owner shall take the responsibility;

- If the public parking lot belongs to ownership of the investor, the investor shall take the responsibility; if owner of the functional area leases the public parking lot from the investor, the management of this parking lot shall be negotiated in the contract for parking rent;

- If the public parking lot is managed by the State according to the approved project, the unit tasked by the State with managing this parking lot shall take the responsibility.

(6) Organizations, individuals as owners of parking spaces as prescribed in (4) and (5) shall be responsible for paying fees for management and maintenance of these parking spaces; in case parking spaces are rent, obligations for maintenance of parking spaces shall be agreed in the contract for parking rent.

Mai Thanh Loi

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