Guidelines for settlement of disputes in management and use of apartment buildings in Vietnam

Guidelines for settlement of disputes in management and use of apartment buildings in Vietnam (Internet image)

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

1. Guidelines for settlement of disputes in management and use of apartment buildings in Vietnam

Guidelines for settlement of disputes in management and use of apartment buildings according to Article 43 of the Regulation promulgated together with Circular 02/2016/TT-BXD (amended in Circular 28/2016/TT-BXD) are as follows:

- Disputes over ownership of apartment buildings shall be settled on the basis of negotiations and reconciliation in conformity with provisions of the Law on Housing, this Regulation and relevant law provisions; any dispute that cannot be settled through negotiations and reconciliation shall be brought to the People's court for settlement according to laws.

- Disputes over expenditures on administration and operation of apartment buildings, handover, management and use of expenditures on maintenance of shared portions shall be settled by People’s committees of provinces where such apartment is situated;

In case decisions given by People’s committees of provinces are not agreed, the dispute may be submitted to the People’ Court for settlement according to laws.

- Disputes between members of the management board shall be settled in conformity with the management board’s operating regulations ratified by the apartment building meeting.

If a member of the management board or the management board is dismissed or replaced but fails to hand over the seal:

The newly established management board has the right to request the competent seal registration and issuance agency to revoke and hand over or annul the previous seal registration in order to carry out procedures for registration and issuance of a new seal in conformity with regulations on issuance, registration and management of seals to that newly established management board.  

If a member of the management board or the management board is dismissed or replaced but fails to hand over the account for management of expenditures on maintenance of shared portions of the apartment building or the account for management of expenditures on operations of the management board: 

The newly established management board has the right to request the credit institutions where such accounts are opened to freeze such accounts and terminate all of transactions related to the dismissed or replaced management board, and carry out procedures for handing over such accounts to the newly established management board in conformity with regulations of Circular 02/2016/TT-BXD and relevant laws.

- Disputes between management board with owners, occupants of apartment buildings over election, dismissal or replacement of members of management board shall be settled via reconciliation; otherwise, an apartment meeting house should be convened for settlement.

- Disputes over the service contract, maintenance contract between service providers and managing units shall be settled through negotiations between the parties; disputes that cannot be settled through negotiations between the two parties shall be brought to the People’s court according to laws.

2. Handling of violations in the management and use of apartment buildings in Vietnam

Handling of violations in management and use of apartment buildings in Vietnam according to Article 44 of the Regulation promulgated together with Circular 02/2016/TT-BXD is as follows:

- Management board, members of management board that violate regulations on management and use of apartment buildings, depending on severity of violation shall be dismissed or replaced as prescribed hereof and liable to administrative handling or criminal prosecution according to laws.

- If the organization of an apartment building meeting is inconsistent with Regulation promulgated together with Circular 02/2016/TT-BXD, decisions and outcomes therefrom shall not be accepted.

- Any decision made by management board inconsistent with regulations on operation, receipts and expenditures shall not be accepted.

- Any person who takes advantage of authority, being owners or occupants of apartment buildings to violate regulations on management and use of apartment buildings, depending on severity of violation shall be liable to administrative handling or criminal prosecution.

- Any person who commits violations causing damage shall make compensations according to laws.

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