Conditions for organization of the first apartment building convention in Vietnam

Conditions for organization of the first apartment building convention in Vietnam
Lê Trương Quốc Đạt

What are the conditions for organization of the first apartment building convention in Vietnam? What issues shall the first apartment building meeting decide in Vietnam? - Quoc Khiem (Tien Giang)

Conditions for organization of the first apartment building convention in Vietnam

Conditions for organization of the first apartment building convention in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Conditions for organization of the first apartment building convention in Vietnam 

According to Clause 1, Article 13 of the Regulation promulgated together with Circular 02/2016/TT-BXD (amended in Circular 06/2019/TT-BXD), conditions for organization of the first apartment building convention include:

- 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.

2. Requirements for number of people attending the first apartment building meeting in Vietnam

According to Clause 2, Article 13 of the Regulation promulgated together with Circular 02/2016/TT-BXD (amended in Circular 06/2019/TT-BXD), the requirements for number of people attending the first apartment building meeting are as follows:

- For the apartment block meeting, attendance should ensure at least 75% of representatives of owners of delivered apartments; otherwise, the meeting shall be organized for the second time with the attendance of at least 50% of representatives of owners of delivered apartments.

If the attendance remains below 50% as prescribed in this Point, the investor may make requests to People’s Committees of communes, wards, commune-level towns where the apartment building is located (hereinafter referred to as People’s Committee of wards) for organization of the meeting according to Clause 5, Article 13 of the Regulation promulgated together with Circular 02/2016/TT-BXD (amended in Circular 06/2019/TT-BXD);

- For the first apartment complex meeting, the attendance should ensure adequate proportion of the owners who agree to incorporate apartment buildings into the apartment complex as prescribed in Point b, Clause 1, Article 13 of the Regulation promulgated together with Circular 02/2016/TT-BXD (amended in Circular 06/2019/TT-BXD);

If the attendance remains below the proportion as prescribed, the meeting shall not be organized until the attendance reaches 50% of owners who agreed to incorporate apartment buildings into the apartment complex;

If the attendance remains below 50%, a written request should be made to People’s Committee of wards for organization of the meeting as prescribed in Clause 5, Article 13 of the Regulation promulgated together with Circular 02/2016/TT-BXD (amended in Circular 06/2019/TT-BXD).

- If the attendance for the apartment complex meeting remains insufficient after the second summoning as prescribed in Point b, this Clause, owners of these apartment blocks may organize the apartment building meeting on the establishment of their own Management Board as prescribed in Point a, Clause 2 of Article 13 of the Regulation promulgated together with Circular 02/2016/TT-BXD (amended in Circular 06/2019/TT-BXD).

3. Preparations for the first apartment building meeting in Vietnam

According to Clause 3, Article 13 of the Regulation promulgated together with Circular 02/2016/TT-BXD (amended in Circular 06/2019/TT-BXD) are as follows:

The investor (in case of multi-owner apartment building) or owners (in case of single-owner apartment building) shall be responsible for preparing contents of meetings including time and venues and organizing official meeting attended by owners and occupants.

The investor or owners may organize preparatory meetings in preparation for the official meeting. Preparations for the first apartment building meeting are as follows:

- Inspect and determine status of owner representatives for attendance; in case of authorization, a letter of authorization should be enclosed;

- Draft regulations on apartment building meeting;

- Anticipate amendments, supplements to contents of management and use of apartment building (if any);

- Draft regulations on election of the Management Board, propose a name for the management board as prescribed in Point a, Clause 1, Article 23, this Regulation; propose number of members of the board, heads, deputy heads (if required by the apartment building);

- For multi-owner apartment buildings, prepare proposals for apartment building administration and operation service price (hereinafter referred to as ‘service price’), draft plan for maintenance of shared area, proposals for the establishment of a managing unit if required by the apartment building;

If the apartment building requires the Management Board, operation model, draft regulations on operation, receipts and expenditures should be proposed;

- Make announcement on paid services such as swimming pools, gyms, tennis court, spa, supermarkets and other services (if any);

- Other proposals in relation to management and use of apartment buildings;

4. What issues shall the first apartment building meeting decide in Vietnam?

According to Clause 4, Article 13 of the Regulation promulgated together with Circular 02/2016/TT-BXD (amended in Circular 06/2019/TT-BXD), the first apartment building meeting shall decide following issues:

- Regulations on apartment building meetings (including first meeting, regular meetings and irregular meetings);

- Draft regulations on election of the Management Board, name of the Management Board, number of members of the Board, heads, deputy heads (if required by the apartment building);

- Amendments, supplements to contents of management and use of apartment building (if any);

- Issues as prescribed in Point dd, Clause 3, Article 13 of the Regulation promulgated together with Circular 02/2016/TT-BXD (amended in Circular 06/2019/TT-BXD); particularly, service price shall be based on this Regulation and the agreement with managing unit;

- Expenses to be contributed by owners, occupants during the use of apartment buildings;

- Other relevant issues;

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