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CIRCULAR

PROMULGATING REGULATION ON MANAGEMENT AND USE OF APARTMENT BUILDINGS

The Circular No. 02/2016/TT-BXD dated February 15, 2016 of the Minister of Construction promulgating Regulation on management and use of apartment buildings, which has been effective since April 02, 2016, is amended by:

1. The Circular No. 22/2016/TT-BXD dated July 01, 2016 of the Minister of Construction on full or partial annulment of legislative documents on business and investment conditions promulgated by the Ministry of Construction or jointly promulgated by Ministries, which has been effective since July 01, 2016;

2. The Circular No. 28/2016/TT-BXD dated February 15, 2016 of the Minister of Construction on amendments to the Circular No. 10/2015/TT-BXD dated December 30, 2015 by Ministry of Construction providing regulations on professional training courses in management of apartment buildings, the Circular No. 11/2015/TT-BXD dated December 30, 2015 by Ministry of Construction providing regulations on issuance of real estate broker license, guidelines for training and improving knowledge of real estate brokerage practice and management of the real estate trading floor, and establishment and organization of activities of the real estate trading floor, and a number of provisions of the Regulation on management and use of apartment buildings promulgated under the Circular No. 02/2016/TT-BXD dated February 15, 2016 by Ministry of Construction, which has been effective since February 01, 2017;

3. The Circular No. 06/2019/TT-BXD dated October 31, 2019 of the Minister of Construction on amendments to some Articles of Circulars relating to management and use of apartment buildings, which has been effective since January 01, 2020;

4. The Circular No. 07/2021/TT-BXD dated June 30, 2021 of the Minister of Construction amending some Articles of Circular No. 19/2016/TT-BXD dated June 30, 2016 and Circular No. 02/2016/TT-BXD dated February 15, 2016 of the Minister of Construction, which has been effective since August 15, 2021.

Pursuant to the Law on Housing No. 65/2014/QH13;

Pursuant to the Government’s Decree No. 62/2013/ND-CP dated June 25, 2013 regulating functions, tasks, powers and organizational structure of the Ministry of Construction;

Pursuant to the Government’s Decree No. 99/2015/ND-CP dated October 20, 2015 providing instructions on the implementation of a number of Articles of the Law on Housing;

At the request of the Director General of Management Agency for Housing and Real-estate Market. The Minister of Construction hereby promulgates a Circular on Regulation on management and use of apartment buildings1.

Article 1. Promulgated together with this Circular is the Regulation on management and use of apartment buildings.

Article 22. This Circular comes into force from April 02, 2016. The following documents shall cease to have effect from the effective date of this Circular:

a) The Circular No. 08/2008/QD-BXD dated May 28, 2008 of the Minister of Construction promulgating Regulation on management and use of apartment buildings;

b) The Circular No. 05/2014/TT-BXD dated May 09, 2014 of the Minister of Construction on amendments to Point a Clause 2 Article 17 of the Regulation on management and use of apartment buildings promulgated together with the Decision No. 08/2008/QD-BXD dated May 28, 2008 of the Minister of Construction.

If regulations on management and use of apartment buildings which were promulgated by the Ministry of Construction, other Ministries and People’s Committees of provinces and central-affiliated cities before the effective date of this Circular are contrary to those specified in the Regulation on management and use of apartment buildings enclosed with this Circular, the latter shall prevail.

Article 3. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairmen/Chairwomen of provincial People’s Committees, and relevant organizations and individuals are responsible for the implementation of this Circular./.

REGULATION

ON MANAGEMENT AND USE OF APARTMENT BUILDINGS
(Enclosed with the Circular No. 02/2016/TT-BXD dated February 15, 2016 of the Minister of Construction)

Chapter I

GENERAL PROVISIONS

Article 1. Scope

13. This Regulation applies to residential apartment buildings and mixed-use apartment buildings (including apartments intended for residential purpose, tourist accommodation establishments, services buildings, commercial buildings, office buildings and other buildings) according to the Law on Housing No. 65/2014/QH13 (hereinafter referred to as “the Law on Housing”), including:

a) Commercial apartment buildings;

b) Social apartment buildings, except for the apartment buildings prescribed in Clause 2 of this Article;

c) Relocation apartment buildings;

d) State-owned old apartment buildings, which have been renovated or re-constructed;

dd) Apartment buildings used as official residences.

2. The application of this Regulation to state-owned old apartment buildings that have not yet been renovated or re-constructed is encouraged. Social apartment buildings exclusively used for students and workers to collectively reside in a single apartment shall not be subject to this Regulation.

Article 2. Regulated entities

1. Investors in apartment building construction projects; apartment building owners and occupants; apartment building management board; units managing and operating the apartment building (hereinafter referred to as “the apartment building operator”).

2. Regulatory bodies involved in management and use of apartment buildings.

3. Other organizations and individuals involved in management and use of apartment buildings.

Article 3. Definitions

For the purposes of this Regulation, the terms below shall be construed as follows:

1. “apartment building” refers to a residential house prescribed in Clause 3 Article 3 of the Law on Housing.

24. “apartment building block” refers to an independent block of apartments or several blocks of apartments sharing the same podium or civil engineering system built according to the planning and project dossier approved by competent authorities.

35. “apartment building complex” includes at least 02 apartment buildings constructed according to the planning and project dossier approved by competent authorities.

4. “residential apartment building” refers to an apartment building designed and constructed for residential purpose only.

5. “mixed-use apartment building” refers to an apartment building designed and constructed for residential purpose and other purposes such as offices, services or commerce.

6. “investor in an apartment building construction project” refers to a capital owner or an organization or individual tasked with managing and using capital for the execution of a project on investment in construction of residential housing including apartment buildings, according to the Law on Housing and relevant regulations of law (hereinafter referred to as “the investor”).

7. “apartment building owners” mean the apartment owners and owners of other areas other than apartments in the apartment building.

8. “apartment building occupant” refers to the owner who is directly using an apartment building or organization, household or individual that are legally using an apartment or other areas within the apartment building by way of leasing, borrowing, staying in a friend's or relative's house or being authorized to for management or use under the decision of a competent authority.

9. “representative of the owner of an apartment or other area other than an apartment within the apartment building” refers to the representative of the owner of each apartment or each other area other than an apartment within an apartment building or of the legal occupant if the owner does not use such apartment and has legal authorization (hereinafter referred to as “representative of the apartment owner”).

10. “single-owner apartment building” refers to an apartment building entirely owned by one single owner regardless of shared and privately owned parts.

11. “multi-owner apartment building” refers to an apartment building owned by at least two owners in which there are privately owned parts of each owner and parts under shared ownership or for shared use by the owners.

12. “shared parts in the apartment building block” refer to the areas, equipment and technical infrastructure prescribed in Clause 2 Article 100 of the Law on Housing which are under shared ownership or for shared use by the owners of such apartment building block.

13. “shared parts in the apartment section” refer to the areas and equipment prescribed in Point b Clause 2 Article 100 of the Law on Housing which are only under shared ownership or for shared use by the owners of such apartment section.

14. “shared parts in the office, services and commercial section” refer to the areas and equipment prescribed in Point b Clause 2 Article 100 of the Law on Housing which are only under shared ownership or for shared use by the owners of such section.

15. “shared parts in the apartment building complex” refer to the areas, facilities, equipment and technical infrastructural facilities under shared ownership or for shared use by the owners of the apartment building complex, including water tanks, generators, septic tanks, water pumps, public gardens (if any) and other facilities and works which are constructed and installed according to the approved design for shared use by several blocks merged into the apartment building complex.

Article 4. Principles of management and use of apartment buildings

1. Apartment buildings must be used for its intended purposes, according to the approved design and content of the project.

2. 6 Apartment buildings shall be managed and used on the basis of commitment and agreement between parties in accordance with the law on housing, relevant regulations of law and social ethics.

3. The apartment building owners and occupants and the operator shall agree to pay fees for management and operation of an apartment building in accordance with regulations of law on housing. The fees for management and operation and fees for maintenance of apartment building parts under shared ownership shall be used for their intended purposes in a public and transparent manner in compliance with regulations of law on housing and this Regulation; fees and charges must be paid according to regulations of law during use of the apartment building.

4. Apartment building owners and occupants must pay fees for maintenance, fees for management and operation and fees for operation of the apartment building management board and other fees and charges during use of the apartment building according to this Regulation and relevant regulations of law; must comply with the internal rules for management and use of the apartment building, regulations of law on housing, this Regulation and relevant regulations during management and use of the apartment building.

5. The apartment building management board shall, on behalf of the owners and current occupants, exercise the rights and responsibilities in relation to management and use of the apartment building in accordance with regulations of law on housing and this Regulation; in the case where an apartment building does not require the establishment of a management board under the Law on Housing, the owners and current occupants shall agree upon a plan for management of the apartment building.

6. Disputes and complaints in relation to management and use of apartment buildings shall be resolved under the Law on Housing, this Regulation and relevant regulations of law.

7. Any violation against the regulations on management and use of apartment buildings must be dealt with in a timely and strict way according to law.

8. 7 Investors, management boards, operators, owners and occupants of apartment buildings are encouraged to apply technologies and information technology during their management, use and operation of apartment buildings.

Chapter II

CONTENTS OF MANAGEMENT AND USE OF APARTMENT BUILDINGS

Article 5. Compiling, transferring and retaining apartment building dossiers8

1. Every owner of an apartment building shall compile and retain a housing dossier as prescribed in Articles 76 and 77 of the Law on Housing.

2. Every investor shall prepare an apartment building dossier in accordance with regulations of the law on construction. If the apartment building dossier is no longer available, it is required to compile an as-built dossier for the apartment building in accordance with regulations of law.

3. An apartment building dossier shall be retained and transferred in accordance with the following regulations:

a) The investor shall retain the dossier specified in Clause 2 of this Article; within 20 working days from the date on which the apartment building management board or the representative managing the apartment building (if the management board is not required to be established) submits a written request for transfer of the apartment building dossier, the investor shall transfer 02 sets of dossier (certified true copies) to the management board. The documents transferred to the management board include:

- As-built drawings (enclosed with a list of drawings), which are prepared in accordance with regulations of the law on construction.

- Manufacturer’s profiles of equipment installed in the building.

- Building operation procedure; building maintenance procedure.

- A notification of approval for results of commissioning of building items and apartment building by the construction authority in accordance with regulations of the law on construction.

- Parking lot layout designed by the investor according to the project and design dossier approved by the competent authority, which clearly indicates parking lots intended for apartment building owners and occupants (including shared parking lots, car parking lots) and public parking lots;

b) After receiving the apartment building dossier specified in Point a of this Clause from the investor, the apartment building management board shall retain and manage this dossier at the community house or its office (if any) or location decided by the apartment building meeting; if the apartment building requires an operator in accordance with regulations of the Law on Housing, the apartment building management board shall provide 01 set of dossier received from the investor to the operator, except where the operator is the investor.

If the operator no longer manages and operates the apartment building, this dossier shall be transferred to the management board;

c) By the deadline mentioned in Point a of this Clause, if the investor fails to transfer the apartment building dossier, the apartment building management board shall request the People's Committee of the rural district, urban district, district-level town or provincial-affiliated city where the apartment building is located (hereinafter referred to as “the district-level People’s Committee) in writing to request the investor to transfer the dossier.

Within 05 working days from the date on which the apartment building management board’s written request is received, the district-level People's Committee shall carry out an inspection, if the investor has not yet transferred the apartment building dossier as prescribed, the investor shall be requested in writing to transfer the dossier; within 10 working days from the date on which the written request of the district-level People’s Committee is received, the investor that fails to transfer the apartment building dossier shall face administrative penalties in accordance with regulations of the law on penalties for administrative violations against regulations on management and use of housing and is compelled to transfer the apartment building dossier to the management board;

d) If the investor transfers the apartment building dossier as prescribed but the management board does not receive it, within 10 working days from the date on which the apartment building dossier is transferred, the investor shall notify and request the People's Committee of the district where the apartment building is located to receive this dossier. The management board shall take responsibility for the issues that arise from the failure to receive the apartment building dossier as prescribed by law.

4. Before transferring the apartment building dossier, the investor and the apartment building management board or the representative managing the apartment building shall inventory equipment and define the apartment building parts under shared ownership in accordance with regulations of the Law on Housing; the transfer of apartment building dossier and finished project shall be made into a record certified by parties. In case of failure to inventory equipment and define the parts under shared ownership, the investor and management board shall make a record of current conditions of equipment and current management of the apartment building parts under shared ownership.

Article 6. Management of privately owned parts in multi-owner apartment buildings

1. Areas and equipment under private ownership of an owner prescribed in Clause 1 Article 100 of the Law on Housing must be clearly stated in the contract for purchase and sale or lease purchase of an apartment or other area other than an apartment in the apartment building (hereinafter referred to as “the contract for sale and purchase or lease purchase”).

Apart from the contract for sale and purchase or lease purchase, the investor shall provide the purchaser or lease purchaser with the drawings as prescribed in Point d Clause 2 Article 5 of this Regulation.

2. If the contract for sale and purchase or lease purchase is signed before the effective date of this Regulation, the definition of the privately owned areas and equipment and provision of the drawings shall comply with regulations of law on housing at the time of signing the contract or as agreed in the contract for sale and purchase or lease purchase if not prescribed by the law on housing.

3. Apartment building owners may directly manage or authorize others to manage their privately owned parts but such privately owned parts must be used for their intended purposes without affecting other privately owned parts of other owners or apartment building parts under shared ownership.

Article 7. Management of parts under shared ownership or for shared use in multi-owner apartment buildings

1. Areas and equipment under shared ownership of the apartment building owners are defined in Clause 2 Article 100 of the Law on Housing and must be clearly stated in the contract for purchase and sale or lease purchase of an apartment. The contract for sale and purchase or hire purchase of an apartment must be accompanied by a list of privately owned parts as prescribed in the Law on Housing; and the shared parts must be used for their intended purposes.

2. Investors shall manage the apartment building owners and occupants’ amenities which have to be transferred to the State for management according to the approved project but have yet to be transferred. After the transfer of the amenities to the State, the unit assigned by the State shall manage, maintain and use such amenities for their intended purposes.

3. The investor reserves the right to own and is responsible for management and maintenance of the apartment building owners and occupants’ amenities built by the investor for business purposes in accordance with the content of the approved project.

4. Apartment building owners shall jointly manage the shared parts of apartment building blocks intended for residential purposes. If the apartment building requires an operator, such operator is assigned to manage such parts. If the apartment building does not require an operator, the apartment building meeting shall decide to assign the apartment building management board or another unit to manage such shared parts.

5. Shared parts of mixed-use apartment building blocks shall be managed in accordance with the following regulations:

a) If it is impossible to separate the shared parts of the office, services and commercial section from those of the apartment section, the apartment building owners shall jointly manage such shared parts; and the shared parts shall be managed and operated under Clause 4 of this Article;

b) If it is possible to separate the shared parts of the office, services and commercial section from those of the apartment section, the apartment building owners shall manage the shared parts of the apartment section; and the shared parts shall be managed and operated under Clause 4 of this Article. The shared parts of the office, services and commercial section shall be managed by the operator or by the owner of such section if the apartment building does not require an operator.

The apartment building owners shall jointly manage the shared parts of the entire block; and such shared parts shall be managed and operated in accordance with Clause 4 of this Article.

6. The community house of an apartment building block shall be managed by the owners or by the management board (if the apartment building has a management board) or by the apartment building operator as decided by the apartment building meeting.

7. The shared parts of the apartment building complex shall be managed by the management board of the apartment building complex on behalf of the owners.

8. If a contract for sale and purchase or lease purchase of an apartment was signed before the effective date of this Regulation, the shared parts of the apartment building shall be defined in accordance with regulations of law on housing at the time of signing the contract or as agreed in the contract for sale and purchase or lease purchase of the apartment if not prescribed by the Law on Housing.

Article 8. Ownership and management of parking lots in apartment buildings

1. Parking lots in apartment buildings shall be constructed according to the standards and technical regulations on construction and the approved design documentation. Parking lots may be located at a basement or ground floor or in other areas inside or outside the apartment building and shall be clearly stated in contracts for sale and purchase or lease purchase of an apartment; parking lots must be used for their intended purposes in line with content of the approved project and Article 101 of the Law on Housing.

2. Regarding single-owner apartment buildings, parking lots are under ownership and management of the owner but must be used according to the content of the approved project, the Law on Housing and this Regulation. If the apartment building requires an operator, such operator shall manage such parking lots. If the apartment building does not require an operator, the owners shall themselves manage or hire another unit to manage such parking lots.

3. The parking lots under shared ownership mentioned in Point a Clause 1 Article 101 of the Law on Housing shall be managed by the operator. If an apartment building does not require an operator but requires an apartment building management board as prescribed in the Law on Housing, the apartment building meeting shall decide to assign the management board or another unit to manage such parking lots on behalf of owners; if the apartment building does not require an operator or a management board, the owners shall agree to themselves manage or hire another unit to manage such parking lots.

4. Regarding car parking lots for apartment building owners prescribed in Point b Clause 1 Article 101 of the Law on Housing, the following regulations shall be complied with:

a) Purchasers or lease purchasers of an apartment or other areas in an apartment building (hereinafter referred to as “apartment purchasers”) shall decide to purchase or lease a car parking lot intended for the apartment building owners under the Law on Housing.

If the apartment building has sufficient car parking lots for every apartment and the apartment purchasers wish to purchase or lease such car parking lots, the investor must decide to sell or lease out such car parking lots but must ensure the principle that each owner of an apartment or other area in the apartment building is not permitted to purchase or lease car parking lots in excess of the number of car parking lots designed or constructed according to the approved project for an apartment or a privately owned area in the apartment building;

b) If the apartment building does not have sufficient car parking lots for every apartment, the investor shall decide to sell or lease out such car parking lots under the agreement between the apartment purchasers; if the apartment purchasers fail to reach an agreement, the investor shall make a decision by arranging a lucky draw for purchase or lease of such car parking lots;

c) The sale and purchase or lease of car parking lots prescribed in Points a and b of this Clause may be included in the contract for sale and purchase or lease purchase of an apartment or specified in a separate contract; the rent for car parking lots shall be paid on a periodic or monthly basis, the payment for car parking lots shall be made in a lump sum, by deferred payments or by instalments as agreed upon by the parties. In the case of leasing car parking lots, the responsibility for paying fees for management and operation or for paying charges for car keeping services in the car parking lot lease contract shall be agreed upon by the parties. In the case of purchasing car parking lots, the purchasers must pay fees for management and operation and charges for car keeping services under law and the agreement with the service provider;

d) If purchasers of car parking lots wish to transfer or lease out these car parking lots, they are only permitted to transfer or lease out them to the current owners or occupants of such apartment building or transfer them back to the investor;

dd) If the purchaser or lease purchaser of an apartment does not purchase the car parking lot prescribed in this Clause, the parties must specify in the contract for sale and purchase or lease purchase of the apartment that such area is under ownership and management of the investor and the investor is not permitted to include costs of investment in construction of such car parking lot in the selling price or lease purchase price of the apartment; if the purchaser or lease purchaser of the apartment purchases or leases such car parking lot, the investor must separate the selling price or lease purchase price of the car parking lot from the selling price or lease purchase price of the apartment;

e) (annulled)9.

5. Public parking lots of an apartment building (parking lots intended for entities other than the apartment building owners and occupants) shall be managed according to the following regulations:

a) In case the owner of the office, services and commercial section purchases public car parking lots from the investor, such owner shall manage these public car parking lots;

b) If public car parking lots are under ownership of the investor, the investor shall manage them; if the owner of the office, services and commercial section leases public car parking lots from the investor, these car parking lots shall be managed under the contract for lease of the car parking lots;

c) Where public car parking lots are managed by the State according to the approved project dossier, the unit assigned by the State shall manage such car parking lots.

6. An organization or individual owning a car parking lot specified in Clause 4 or 5 of this Article shall pay fees for management and operation and carry out maintenance of such car parking lot; in the case of leasing a car parking lot, the responsibility for maintenance of the car parking lot shall be agreed in the contract for leasing the car parking lot.

Article 9. Internal rules for management and use of apartment buildings

110. Apartment buildings governed by this Regulation must have internal rules for management and use including the contents mentioned in Clause 2 of this Clause. The investor or apartment building meeting shall rely on the sample internal rules mentioned in this Regulation to formulate and pass their own internal rules suitable for each apartment building block or apartment building complex.

2. The internal rules on management and use of an apartment building shall contain at least:

a) Regulations applicable to owners, occupants, temporary residents and guests;

b) Prohibited acts during the use of the apartment building and handling of violations of the internal rules;

c) Regulations on use of the shared parts of the apartment building;

d) Regulations on repair of damage to or change of equipment in the privately owned parts and handling of incidents in the apartment building;

dd) Regulations on fire safety in the apartment building;

e) Regulations on disclosure of information concerning the use of the apartment building;

g) Regulations on obligations of apartment building owners and occupants;

h) Other regulations depending on the characteristics of each apartment building.

3. Where first apartment building meeting has not been held, the investor shall establish internal rules on management and use of the apartment building according to Causes 1 and 2 of this Article, enclose it with the contract for sale and purchase or lease purchase of an apartment and to make it publicly available in the community house, elevator lobbies and reception area of the apartment building block.

4. If the first apartment building meeting is held, the meeting may consider amending the internal rules on management and use of the apartment building established by the investor but the amendments must not be contrary to regulations of law on housing and this Regulation. After the first apartment building meeting, the apartment building management board or the representative managing the apartment building which does not require a management board shall make the internal rules publicly available in the community house, elevator lobbies and reception area of the apartment building block.

Article 10. Management and operation of apartment buildings

1. The management and operation of an apartment building shall focus on the following tasks:

a) Controlling and maintaining operation of and regularly maintaining elevators, water pumps, generators, automatic fire alarm system, firefighting system, firefighting tools, stand-by equipment and other equipment belonging to the parts under shared ownership or for shared use of the apartment building block or apartment building complex;

b) Providing security services, environmental hygiene, garbage collection, gardening, insect control and other services to ensure the normal operation of the apartment building;

c) Other relevant tasks.

2. If the apartment building requires an operator as prescribed in Point a Clause 1 Article 105 of the Law on Housing, all tasks prescribed in Clause 1 of this Article must be performed by the operator, and the owners and occupants are not permitted to hire different service providers for management and operation purposes. The apartment building operator may conclude a contract with a service provider to perform the tasks of managing and operating the apartment building but is responsible for management and operation under the signed service contract with the apartment building management board.

Article 11. Maintenance of apartment buildings

1. Maintenance of an apartment building shall include checks, observation, inspection of the quality, and minor repair, regular repair and major repair of the construction parts of the apartment building, check and maintenance of the fire-fighting and prevention system and replacement of components or equipment for shared use in the apartment building block or apartment building complex.

2. Every apartment building owner shall maintain the privately owned parts and make financial contributions to the maintenance of the shared parts of the apartment building in accordance with the Law on Housing and this Regulation.

If damage to a privately owned part affects other owners, the owner shall repair such damage. If the owner fails to carry out the repair, the operator or the person assigned to manage the apartment building is permitted to suspend or request the service provider to suspend the supply of power or domestic water to such privately owned part. If there is damage to a part under shared ownership in the privately owned area, the owner of the privately owned part shall enable and assist the apartment building operator or construction unit to repair such damage.

3. The maintenance of construction parts of the apartment building must be carried out by units with capability prescribed by regulations of law on construction; the maintenance of equipment of the apartment building must be carried out by units whose capability is appropriate to the maintenance work. If the apartment building operator has the capability for maintenance, such operator may be hired to carry out maintenance.

4. If the first apartment building meeting has yet to be held, the maintenance of the shared parts of the apartment building shall be carried out as prescribed in Points b and c Clause 2 Article 5 of this Regulation.

5. After the first apartment building meeting is held, the maintenance of the shared parts of an multi-owner apartment building shall be carried out as prescribed in Points b and c Clause 2 Article 5 of this Regulation and the annual maintenance plan adopted by the apartment building meeting as prescribed in this Regulation; in the case of unexpected damage or damage caused by a natural disaster or fire, the apartment building management board shall make a decision on maintenance under this Regulation and relevant regulations of law but a report thereon must be given at the forthcoming apartment building meeting.

6. The maintenance of the shared parts of the apartment building shall be carried out according to Section 4 Chapter III of this Regulation.

Chapter III

ORGANIZATION OF MANAGEMENT AND USE OF APARTMENT BUILDINGS

Section 1. APARTMENT BUILDING MEETING

Article 12. Apartment building meeting

1. For a single-owner apartment building, an apartment building meeting means a meeting between the representative of the owner and apartment building occupants.

2. For a multi-owner apartment building, an apartment building meeting means a meeting of representatives of the apartment building owners or current occupants if the owners do not attend (even if the owners have received an apartment or other area in the apartment building but have not fully paid the investor, except where the contract for sale and purchase or lease purchase of an apartment is terminated).

3. The apartment building meeting is entitled to decide on the contents related to management and use of the apartment building prescribed in Article 102 of the Law on Housing and this Regulation.

Article 13. First apartment building meeting11

1. Conditions for organization of the first apartment building meeting:

a) The apartment building meeting shall be held 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 purchasers or lease purchasers (excluding the apartments that are not sold or yet to be sold or leased out under a lease-purchase contract by the investor); by the aforementioned deadline, if the apartment building has not had at least 50% of apartments transferred, the apartment building meeting shall be held until at least 50% of apartments are transferred;

b) The apartment building meeting shall be held if at least 50% of apartments of each building in a complex have been transferred to purchasers or lease purchasers (excluding the apartments that are not sold or yet to be sold or leased out under a lease-purchase contract 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 merge the buildings into the apartment building complex.

2. Conditions for attendances at the first apartment building meeting:

a) There must be at least 50% of representatives of owners of transferred apartments at the apartment building meeting. If the attendances are not sufficient as prescribed in this Point, within 07 working days from the date on which the date of the apartment building meeting is specified in the notice of meeting, the investor or representative of the apartment owner shall request the People’s Committee of the commune, ward or commune-level town (hereinafter referred to as “communal People’s Committee”) where the apartment building is located to hold an apartment building meeting;

b) Regarding the apartment building complex meeting, there must be sufficient number of persons agreeing to merge the buildings into the apartment building complex. If the attendances are not sufficient as prescribed in this Point, within 07 working days from the date on which the date of the apartment building meeting is specified in the notice of meeting, the investor or representative of the apartment owner shall request the communal People’s Committee to hold an apartment building meeting, except where an apartment building meeting is held at a building in the complex as prescribed in Point a of this Clause.

3. The investor (in the case of a multi-owner apartment building) or the owner (in the case of a single-owner apartment building) shall prepare contents and notify the date and place of the meeting, and hold an official meeting attended by apartment building owners and occupants. The investor or owner may hold a preparatory meeting to prepare contents of the official apartment building meeting. Contents of the first apartment building meeting shall be prepared as follows:

a) Inspection and determination of status of representatives of apartment owners attending the meeting; 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 meeting, rights and responsibilities of the authorizing party and authorized party, and bears signatures of the authorizing person and authorized person;

b) A draft regulation on apartment building meeting;

c) Proposed amendments to internal rules for management and use of the apartment building (if any);

d) A draft regulation on election of the apartment building 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 the 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;

dd) 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 operator 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 operating model of the management board, draft operating regulation and regulation on revenues and expenditures of the management board.

e) Prices of services at swimming pools, gyms, tennis courts, spas, supermarkets and other services (if any);

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

4. The first apartment building meeting shall decide:

a) The regulation on apartment building meeting (including first, annual and irregular meeting);

b) Regulation on election of apartment building 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;

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

d) Contents specified in Point dd Clause 3 of this Article; regarding prices of apartment building management services, they shall be decided by the apartment building meeting according to this Regulation and by negotiation with the operator;

dd) Fees paid by owners and occupants of the apartment building during the use thereof;

e) Other relevant contents.

5. The communal People’s Committee shall hold the first apartment building meeting in one of the following cases:

a) The apartment building has been transferred and put to use for more than 12 months and has at least 50% of apartments transferred as prescribed in Point a Clause 1 of this Article but the investor fails to hold an apartment building meeting and representatives of owners of transferred apartments have requested the communal People’s Committee in writing to hold a meeting;

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

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

If the communal People's Committee holds the first apartment building meeting, the funding for organization of this meeting shall be provided by apartment building owners and occupants.

6. Within 30 working days from the receipt of the written requests from representative of apartment owners or investor as prescribed in Clause 5 of this Article, the communal People’s Committee shall hold the first apartment building meeting. The verdict of the first apartment building meeting held by the communal People’s Committee binding upon the apartment building owners and occupants is the same as that of the first apartment building meeting held by the investor.

Article 14. Irregular apartment building meetings

1. A irregular apartment building meeting is held in one of the following cases:

a) Election of a replacement for the management board’s head or deputy head who is dismissed or discharged or dies or is missing; in the case of replacement of the management board’s deputy head being the representative of the investor, the investor shall appoint another person to hold such position without holding an irregular apartment building meeting;

b) Dismissal or discharge of all members of the management board and election of a new management board;

c) Election of a replacement for the management board’s member who is not the head or deputy head and who is dismissed or discharged or dies or is missing in the case where the collection of opinions from the apartment building owners has been organized but the number of persons who agree to the replacement is inadequate as prescribed in Point b Clause 3 Article 26 of this Regulation or election of a replacement for the member of the apartment building management board according to Clause 4 Article 26 of this Regulation;

d) The apartment building management board proposes replacement of the operator or adjustment of the prices of the apartment building management and operation services;

dd) Other cases as requested by more than 50% of the representatives of the owners of the transferred apartments.

2. Conditions concerning the number of participants in an irregular an apartment building block meeting are as follows:

a) If an apartment building meeting is held to make a decision on one of the issues prescribed in Points a, b, c or d Clause 1 of this Article, it must be attended by at least 50% of representatives of owners of transferred apartments;

b) If an apartment building meeting is held at the request of the apartment owners prescribed in Point d Clause 1 of this Article, it must be attended by at least 75% of the number of persons who have requested in writing that an irregular apartment building meeting be held.

3. Conditions concerning the number of participants in an irregular an apartment building complex meeting are as follows:

a) If an apartment building complex meeting is held to elect the head of the management board or a completely new management board of the apartment building complex or to make a decision on the content specified in Point d Clause 1 of this Article, it must be attended by at least 50% of the representatives of the owners of the transferred apartments in the apartment building complex.

If each block in the complex has its own operator but a block proposes to change its operator or requests adjustment of prices of the block management and operation services, the meeting must be attended by at least 50% of the representatives of the owners of the transferred apartments in such block and only an irregular apartment building meeting of such block is held to make the decision;

b) Where a replacement for the management board’s deputy head or management board’s member being the representative of a block in the apartment building complex is elected, only an irregular apartment building meeting of such block is held to elect the replacement. A block meeting is permitted to be held to elect a replacement if it is attended by at least 50% of the representatives of the owners of the transferred apartments in such block;

c) If an apartment building meeting is held at the request of the apartment owners prescribed in Point dd Clause 1 of this Article, it must be attended by at least 75% of the number of persons who have requested in writing that an irregular apartment building complex meeting be held.

4. The apartment building management board shall prepare contents and notify the time and place of the meeting, and hold an official meeting attended by apartment building owners and occupants.

5. The communal People's Committee12 shall hold an irregular meeting of an apartment building or an apartment building complex to make a decision on one of the contents prescribed in Points a, b or c Clause 1 of this Article in one of the following cases:

a) The apartment building management board has held an irregular meeting of the apartment building or apartment building complex but the number of the participants is inadequate as prescribed in Point a Clause 2 or Point a Clause 3 of this Article and there is a written request from the apartment building management board;

b) There are written requests from at least 50% of the representatives of the owners of the transferred apartments that an irregular apartment building meeting be held to make a decision on one of the contents prescribed in Points a, b or c Clause 1 of this Article but the apartment building management board failed to hold an irregular meeting of the apartment building or apartment building complex;

c)13 The investor has been shut down due to dissolution or bankruptcy.

6. Within 30 working days from the receipt of the written request from the management board or written requests from the representative of the apartment owners or investor prescribed in Clause 5 of this Article14, the communal People’s Committee shall hold an irregular apartment building meeting. The verdict of the irregular apartment building meeting held by the communal People’s Committee15 binding upon the apartment building owners and occupants is the same as that of the apartment building meeting held by the apartment building management board as prescribed in this Article.

Article 15. Annual apartment building meetings

1. Annual apartment building meetings shall be held once a year if it is attended by at least 30% of the representatives of the owners of the transferred apartments or by a less number thereof agreed by the apartment building owners. An annual meeting of an apartment building or apartment building complex shall contain the following:

a) Listen to the reports on performance of the management board and pass the revenue and expenses of the apartment building management board;

b) Consider passing the statement of costs of maintenance of the shared parts of the apartment building for the year and pass the plan for maintenance of the shared parts of the apartment building for the next year;

c) Listen to the report on management and operation of the apartment building;

d) Make decisions on other contents (if any) specified in Article 102 of the Law on Housing.

2. For an annual apartment building block meeting which also includes making a decision on any of the following issues, it must be attended by at least 50% of the representatives of the owners of the transferred apartments:

a) Election of a replacement for the management board’s head or deputy head who is dismissed or discharged or dies or is missing; in the case of replacement of the management board’s deputy head being the representative of the investor, the investor shall appoint another person to hold such position without holding an apartment building meeting;

b) Dismissal or discharge of all members of the management board and election of a new management board;

c) Election of a replacement for the management board’s member who is not the head or deputy head and who is dismissed or discharged or dies or is missing in the case where the collection of opinions from the apartment building owners has been organized but the number of persons who agree to the replacement is inadequate as prescribed in Point b Clause 3 Article 26 of this Regulation or election of a replacement for the member of the apartment building management board according to Clause 4 Article 26 of this Regulation.

3. For an annual apartment building complex meeting which also includes making a decision on election of the management board’s head or the issues prescribed in Points b and d Clause 1 Article 14 of this Regulation, it must be attended by at least 50% of the representatives of the owners of the transferred apartments in such apartment building complex.

4. The apartment building management board shall prepare contents and notify the time and place of the meeting, and hold an official meeting attended by apartment building owners and occupants; and may a preparatory meeting to prepare contents of the official meeting.

5. If the number of the participants is inadequate as prescribed in Clause 2 of this Article, the apartment building management board shall request the communal People’s Committee in writing to hold an apartment building meeting under Clauses 5 and 6 Article 14 of this Regulation.

6. If, through supervision or discussion at the apartment building meeting, an apartment building owner discovers a financial violation committed by the management board or a member of the apartment building management board, the apartment committee meeting may, depending on the seriousness of the violation, decide to discharge one, several or all members of the apartment building management and elect replacements for members according to Clause 2 or Clauses 3 and 5 of this Article; if the violator faces a criminal prosecution, the apartment building meeting shall pass a resolution requesting the competent authority to consider dealing with criminal liability in accordance with law.

Where necessary, the apartment building meeting shall decide to establish an inspection team or hires a professional unit to inspect books and revenue and expenses of the apartment building management board; and if a professional unit is hired, the apartment building owners and occupants must make financial contributions with a view to payment of costs to such unit as agreed.

Article 16. Attendances and voting at apartment building meetings17

1. Regarding a single-owner apartment building or single-owner apartment building complex, attendances at an apartment building meeting comprise representatives of apartment building owners and occupants and representative of the People’s Committee of the commune where the apartment building is located.

2. Regarding a multi-owner apartment building or multi-owner apartment building complex, attendances at an apartment building meeting are prescribed as follows:

a) If the first apartment building meeting is held, attendances thereat comprise a representative of the investor, representatives of owners of the transferred apartments, representative of the apartment building operator (if any) and a representative of the communal People’s Committee who is invited;

b) If an irregular apartment building meeting or annual apartment building meeting is held, attendances thereat comprise representative of owners of the transferred apartments, a representative of the investor (if the investor still owns some area in the apartment building), a representative of the apartment building operator (if the apartment building has to hire an operator) and a representative of the communal People’s Committee who is invited.

3. The right to vote at the apartment building or apartment building complex meeting is determined according to the privately owned area of the apartment owner or owner of another area in the apartment building adhering to the principle that 1 m² of the privately owned area is equivalent to 01 vote.

4. The apartment building owner or owner of another area in the apartment building may authorize another owner in such apartment building or occupant of such apartment building to attend the meeting and vote at the meeting on behalf of the owner.

Regarding state-owned apartments (including unoccupied and occupied ones), the authority representing their owners shall attend the meeting and exercise the right to vote. Where apartments are occupied, however, the authority representing their owners authorizes the occupants to attend the meeting, such occupants shall attend the meeting and exercise the right to vote with respect to the occupied area.

5. Every decision made at the apartment building or apartment building complex meeting shall be approved under the majority rule by voting or casting ballots; contents of the meeting shall be made into a record, which bears signatures of presiding members and secretary of the apartment building meeting.

Section 2. APARTMENT BUILDING MANAGEMENT BOARD

Article 17. Apartment building management board

1. For a multi-owner apartment building which has to establish a management board under the Law on Housing, the apartment building management board shall be an organization which has a legal status and its own seal and operate according to the model prescribed in Clause 1 Article 18 of this Regulation. The management board shall be elected by the meeting of the apartment building or apartment building complex to exercise the rights and responsibilities mentioned in Clauses 1 and 2 Article 41 of this Regulation.

2. For a single-owner apartment building or multi-owner apartment building that has less than 20 apartments, the apartment building meeting shall decide whether or not a management board is established. If an apartment building management board is established, the operating principles and organizational structure of the management board are prescribed as follows:

a) In the case of a single-owner apartment building, the apartment building management board shall not have a legal status and its own seal; shall operate according to the model prescribed in Clause 3 Article 18 of this Regulation and exercise the rights and responsibilities mentioned in Clause 2 Article 41 of this Regulation;

b) In the case of a multiple-owner apartment building, the model and operating principles of the apartment building management board shall comply with Clause 1 of this Article.

3. The apartment building management board prescribed in Clause 1 or 2 of this Article shall have a term of 03 years and be re-elected at the annual apartment building meeting of the last year of its term, except where an irregular apartment building meeting is held to elect a replacement for the management board.

4. The decisions of the apartment building management board that are beyond the power specified in in Article 41 of this Regulation shall be invalid; where such decisions cause damage to the legitimate rights and interests of organizations and individuals, the members of the management board must pay compensation in accordance with law.

5. 18 Members of the apartment building management board shall perform the tasks specified in the management board’s operating regulation passed by the apartment building meeting.

6. The apartment building management board shall have funding for its operation annually contributed by the apartment building owners and occupants under the decision of the apartment building meeting. Such funding is specified in the operating regulation of the management board and managed through a bank account of the management board. The apartment building management board must use its operating funding for intended purposes, must not use it for business purposes and must report revenue and expenses at the annual apartment building meeting.

7. 19 The owners and occupants of the apartment building shall, according to the decision made at the apartment building meeting, make financial contributions to cover remuneration for members of the management board. The apartment building meeting may refer to the region-based minimum wages stipulated by the State to consider deciding a remuneration corresponding to the responsibilities and obligations of members of the management board according to specific conditions of each apartment building block or complex and each locality, except where the members refuse to receive the remuneration.

If the apartment building has an operator in accordance with the Law on Housing and this Regulation, the apartment building owners and occupants shall make financial contributions via this operator for payment of remuneration to the management board's members; the remuneration shall not be recorded in the operator’s business activities. If the apartment building does not have an operator as stipulated in the Law on Housing and this Regulation, the apartment building management board shall collect the financial contributions and pay remuneration to each member.

Article 18. Model of apartment building management board20

1. The management board of a multi-owner apartment building or multiple-owner apartment building complex shall be established and operate according to the model of the board of directors of a cooperative or a joint-stock company. The operating model of the management board shall be decided at the apartment building meeting in a manner that is suitable for each block or complex.

2. If a management board is established and operates according to the model of the board of directors of a co-operative, meetings of the management board shall be convened and held in conformity with regulations of law on co-operatives. If a management board is established and operates according to the model of the board of directors of a joint-stock company, meetings of the management board shall be convened and held in conformity with regulations of law on enterprises.

Voting and preparation of minutes of meeting of the apartment building management board must comply with Article 25 of this Regulation.

3. The management board of a single-owner apartment building or single-owner apartment building complex shall be established and operate according to the self-governance model. Members of the management board shall themselves agree to give each member the rights and responsibilities enshrined in Clause 2 Article 41 of this Regulation.

Article 19. Requirements to be satisfied by members of apartment building management boards

1. 21 With regard to a multi-owner apartment building, members of the apartment building management board must be the owners and are using apartments in that apartment building. In case an occupant of an apartment or another area in the apartment building is not the owner of that apartment or such another area but is authorized by such owner to attend the apartment building meeting, that occupant may be appointed as a member of the management board of that apartment building.. Persons who have experience and knowledge in the field of architecture, construction, electrical engineering, electronics engineering, fire safety, finance or law are encouraged to join the apartment building's management board.

With regard to a single-owner apartment building, members of the apartment building management board include representatives of apartment owners and occupants in such apartment building.

2. 22 Members of the apartment building management board are encouraged to join professional training courses on management and use of apartment buildings organized by the training institutions recognized by the Ministry of Construction.

Article 20. Number and composition of apartment building management boards

1. 23 The number of members of the management board of an apartment building or apartment building complex shall be decided by the apartment building meeting according to the following principles:

a) For an apartment building comprising only one block, the management board must have at least 03 members. For an apartment building comprising multiple blocks specified in Clause 2 Article 3 of this Regulation, at least 01 member of the management board shall be assigned to each block;

b) For a apartment building complex, the management board must have at least 06 members.

2. The composition of the management board of a multiple-owner apartment building or multiple-owner apartment building complex is prescribed as follows:

a) The management board of an apartment building block shall include 01 head, 01 or 02 deputy heads and other members decided by the apartment building meeting.

If the investor still owns an area in the apartment building, the representative of the investor may be elected by the apartment building meeting as the head of the apartment building management board or may act as a deputy head of the apartment building management if he/she is not elected as the head;

b) The management board of an apartment building complex shall include one head; each block in the complex shall hold a meeting to appoint 01 or 02 representatives as deputy heads, and other members shall be decided by the meeting of the apartment building complex.

If the investor still owns an area in the apartment building complex, the representative of the investor may be elected by the meeting of the apartment building complex as the head of the management board. Regarding each block in the apartment building complex in which the investor still owns an area, the investor is entitled to appoint a representative as a deputy head of the management board of the complex, except where the representative of the investor of such block is elected as the head of the management board of the apartment building complex.

3. The composition of the management board of a single-owner apartment building or single-owner apartment building complex shall include 01 head, 01 or 02 deputy heads, and other members decided by the apartment building meeting.

Article 21. Separation and merger of apartment building management boards

1. Separation or merger of an apartment building management board prescribed in this Article shall only apply to multi-owner apartment buildings for which a management board has been established.

2. Separation of the management board of an apartment building complex is prescribed as follows:

a) If the representatives of the apartment owners of a block in the apartment building complex wish to separate from such apartment building complex to establish their own block management board, a block meeting must be held to collect opinions from the apartment building owners. If at least 50% of the representatives of the owners of the transferred apartments in such block so agree (through the record of collective proposal), the management board’s members being the representatives of such block shall send the record of collective proposal to the management board of the apartment building complex.

After the record of collective proposal is sent, the owners of the block requesting separation from the complex shall agree to appoint a provisional organization board to hold the first apartment building meeting according to Clauses 1 to 4 Article 13 of this Regulation; and the election, composition, number of members and operating model of an apartment building management board shall comply with the regulations set forth in this Section. A representative of the block being the member of the management board of the apartment building complex shall not be recognized as a member of the management board of such complex after the management board of such apartment building block is established;

b) If an apartment building block is separated from the apartment building complex while the representative of such block is still holding the position as the head of the apartment building complex management board, after a block management board is established, the apartment building complex management board must hold an irregular meeting of the apartment building complex to elect a replacement for the head of the management board of the apartment building complex under Article 14 of this Regulation;

c) If the representatives of the apartment owners of the blocks in the complex wish to carry out separation with a view to establishment of establish a management board of each block, after the blocks hold apartment building block meetings to have a record of collective proposal as prescribed in Point a of this Clause, the management board of the apartment building complex must hold a meeting to agree upon a method of transferring documentation and fees for maintenance of each block to the new management boards after such management boards are established.

After the representatives of the blocks send their records of collective proposal to the management board of the apartment building complex, the blocks shall hold an apartment building block meeting as prescribed in Point a of this Clause;

d) The procedures for recognition of an apartment building management board prescribed in this Clause are specified in Article 22 of this Regulation.

3. The merger of the management board of a block into the management board of a complex is prescribed as follows:

a) Where apartment building blocks have management boards which independently operate and satisfy all conditions for establishment of an apartment building block in accordance with this Regulation, the management boards of such blocks must hold a meeting to agree to establish a management board of an apartment building complex; and the minutes of meeting must specify a plan for merger into the management board of the apartment building block and transfer of the block documentation, and documentation concerning operation of the management boards and funding currently managed by the management boards of the blocks.

The management board of each block must hold a meeting to collect opinions of the block owner. If at least 50% of the representatives of the owners of the transferred apartments in each block agree to the merger of the block into the apartment building block (through a record of collective proposal), the management boards of such blocks shall cooperate in holding the first apartment building block meeting. The first apartment building block meeting must be subject to the regulations laid down in Clauses 1 through 4 Article 13, and Article 26 of this Regulation;

b) If an apartment building block has had a management board which independently operates but wishes to be merged into the management board of an apartment building block which has been established, the management board of the block and the management board of the apartment building complex must hold a meeting and prepare a record stating their agreement on merger.

After the record is available, the management board of the apartment building block must hold a meeting to collect opinions of the owners in the apartment building block; and the management board of the block must hold a meeting to collect opinions of the owners of such block. If at least 50% of the representatives of the owners of the transferred apartments in such apartment building block and 50% of the representatives of the owners of the transferred apartments in such apartment building block agree to the merger into the apartment building block (through the record of collective agreement), the management board of such block must hold a block meeting to appoint representatives to join the management board of the apartment building complex.

The number and composition of representatives of the block joining the management board of the apartment building complex shall be determined in the same manner as other blocks in such apartment building complex. If the representative of the investor is holding the position as a deputy head of the block management board, such representative is entitled to act as a deputy head of the management board of the apartment building complex;

c) The procedures for recognition of an apartment building complex management board prescribed in this Clause are specified in Article 22 of this Regulation.

4. The transfer and management of the block documentation and documentation concerning the apartment building management board’s operation, and transfer of relevant funding in the cases mentioned in Clauses 2 and 3 of this Article shall be carried out as follows:

a) In the case mentioned in Clause 2 of this Clause, the apartment building complex management board shall, within 07 working days from the date on which the new management board submits the written request, transfer the documentation and entire funding in relation to the block separated from the apartment building complex to the new block management board for management according to regulations;

b) In the case mentioned in Clause 3 of this Clause, the apartment building block management board shall, within 07 working days from the date on which the new management board submits the written request, transfer the block documentation, documentation concerning management board’s operation, and entire funding in relation to such block to the apartment building complex management board for management according to regulations;

c) The management board of the apartment building block or apartment building complex shall send a written request enclosed with a certified copy of the recognition decision of the district-level People's Committee24 to the credit institution which currently manages the fees for maintenance of the apartment building block or the apartment building block for transfer of such funding to the new management board for management;

d) After receiving the documents prescribed in Point c of this Clause, the credit institution currently managing the funding shall transfer the entire remaining funding prescribed in Point a or b of this Clause to the new management board. The transfer of the documentation concerning operation of the management board and transfer of the funding prescribed in this Clause must be made into a record bearing signatures of the relevant parties. After being transferred to the new apartment building management board, the funding shall be managed and used in accordance with regulations of law on housing and this Regulation.

Article 22. Procedures for recognition and notification of apartment building management boards

1. Within 10 working days from the date on which the apartment building management board is elected by the apartment building meeting (including election of the first management board; election of a management board upon expiration of its term or discharge or election of a replacement for the management board; election of a new management board upon separation from or merger into a management board or election of a replacement for the head or deputy head of the apartment building management board), the apartment building management board  shall submit an application for recognition of a management board prescribed in Article 23 of this Regulation to the People's Committee of the district25 where the apartment building is located.

2. 26 Within 07 working days from the receipt of the sufficient application, the district-level People's Committee shall check it and issue a recognition decision or authorize the People’s Committee of the commune where the apartment building is located to do so.

3. The decision on recognition of the apartment building management board shall contain:

a) Name and operating model of the management board;

b) Number of members of the management board;

c) Full name and position of the head or deputy heads of the management board;

a) Term of the management board;

dd) Responsibility of relevant organizations and individuals for implementing the decision;

e) 27 Replacement of the previous recognition decision (if any).

4. 28 After the management board recognition decision is issued by the People's Committee of the district or People's Committee of the commune, the recognized management board shall open its own account. In the case of a multi-owner apartment building, the management board shall open an account to manage fees for maintenance of the shared area in accordance with the Law on Housing and this Regulation and register a seal in accordance with regulations of law on seal registration and management (the management board's name inscribed on the seal must be identical to the recognized management board's name), except where the management board has had a seal and opened an account as prescribed by law.

5. 29 The management board of the single-owner apartment building is entitled to operate if it is recognized by the People’s Committee of the district or People’s Committee of the commune. The management board of the multi-owner apartment building is entitled to operate if it has registered its seal in accordance with regulations of law and opened accounts in accordance with this Regulation.

Regarding the management board of the multi-owner apartment building that has had a seal and opened an account as prescribed by law and is not required to be renamed, it is required to send a notification enclosed with a certified true copy of the management board recognition decision to the credit institution where the management board opens its account to make transactions with such credit institution as prescribed.”

Article 23. Applications for recognition of apartment building management boards

1. In the case of establishment of a first management board, the application for recognition of a management board includes:

a) An application form of the management board, specifying the management board’s name approved by the apartment building meeting. In the case of establishment of the management board of an apartment building block, the management board is named after the name or number of the block. In the case of establishment of the management board of an apartment building complex, the name of management board shall be decided by the apartment building meeting;

b) Minutes of apartment building meeting on election of the management board;

c) List of members of the management board and full names of the head and deputy heads of the management board;

d) Operating regulation of the management board passed by the apartment building meeting.

2. In the case of re-election of the management board upon expiration of its term, election of a new management board due to discharge of the previous management board according to regulations or election of a replacement for the head or deputy head of the management board, the application for recognition of a management board includes:

a) An application form of the management board;

b) Original of the decision on recognition of the management board;

c) Minutes of apartment building meeting on re-election, election of a replacement for the management board or election of a replacement for the head or deputy head of the management board;

d) List of members of the management board (including a list of members, head and deputy heads of the management board);

dd) Operating regulation of the management board passed by the apartment building meeting (if any amendment is made to such regulation).

3. In the case of separation from the management board of an apartment building complex prescribed in Clause 2 Article 21 of this Regulation, the application for recognition of a management board is prescribed as follows:

a) In the case of applying for recognition of the management board of a block after separation from the apartment building complex, the application includes the documents prescribed in Clause 1 of this Article enclosed with a record of agreement of the representatives of the apartment building owners on separation from the apartment building complex prescribed in Point a Clause 2 Article 21 of this Regulation. In the cases prescribed in Point c Clause 2 Article 21 of this Regulation, the original of the decision on recognition of the management board is required;

b) In the case of applying for recognition of the management board of an apartment building complex after a block is separated from the apartment building complex, the application includes the application form of the management board of the apartment building complex, the original of the decision on recognition of the management board of the apartment building complex, a list of the remaining members of the management board of the apartment building complex (specifying the full name and position of each member of the management board); in the case of re-election of the head of the management board of the apartment building complex as prescribed in Point b Clause 2 Article 21 of this Regulation, the minutes of apartment building meeting on election of the head of the management board and a list of the elected persons are required.

4. In the case of merger into the management board prescribed in Clause 3 Article 21 of this Regulation, the application for recognition of a management board is prescribed as follows:

a) In the case of applying for recognition of the management board of a block after separation from the apartment building complex, the application includes the documents prescribed in Clause 1 of this Article enclosed with a record of agreement of the representatives of the apartment building owners on separation from the apartment building complex prescribed in Point a Clause 2 Article 21 of this Regulation. In the cases prescribed in Point c Clause 3 Article 21 of this Regulation, the original of the decision on recognition of the management board is required;

b) In the case of applying for recognition of the management board of an apartment building complex due to merger of the management board of a block into the management board of the apartment building complex, the application includes an application of the management board of the apartment building complex, the record of collective agreement of the owners of the block or the apartment building complex and the minutes of meeting of the apartment building block having a need for merger into the complex prescribed in Point b Clause 3 Article 21 of this Regulation, a list of members of the management board of the complex (including the new members from the merged block) and the original of the decision on recognition of the management board of the block or the apartment building complex.

Article 24. Operating regulations and regulations on revenue and expenses of apartment building management boards

1. Operating regulation and regulations on financial revenue and expenses of an apartment building management board or apartment building complex management board shall be passed by the apartment building meeting in a public and transparent manner and in compliance with this Regulation, the Law on Housing and relevant regulations of law.

2. Operating regulation of the management board of an apartment building or apartment building complex shall contain the following:

a) 30 Operating model of the management board; relationship between members of the management board, between the management board and the People’s Committee of the commune where the apartment building is located and relevant organizations during the management, use and operation of the apartment building;

b) Principles of organization of management board meetings, including regulations on persons convening meetings, conditions for a meeting, presiding person of meetings, content of the minutes of meeting, method of voting or resolving issues falling within the jurisdiction of the management board, and effectiveness of the decisions of the management board;

c) Rights and obligations of the management board and specific responsibilities of each member of the management board, clearly stating responsibility for signing documents of the management board, signing contracts with an operator or unit carrying out maintenance of the shared parts of the apartment building; responsibility for operating the management board or signing documents in the absence of the head or a deputy head of the management board; and responsibility for managing the seal (if any) of the management board;

d) Right to access information and responsibility for providing information between members of the management board;

dd) Receipt and response to recommendations of the apartment building owners or occupants, handling of cases relating to dismissal or discharge of a member of the management board and responsibility of violators for providing compensation for damage;

e) Mechanism for reporting or passing decisions on expenses of the management board; person responsible for management of documents concerning operation of the management board;

g) Other contents depending on characteristics of each block or apartment building complex.

3. Regulations on financial revenue and expenses of the management board of an apartment building or apartment building complex shall contain the following:

a) Provisions on revenue managed by the management board, name of the holder of the account for operation or account for management of fees for maintenance of shared parts managed by the management board, and provisions on the term of deposits of fees for maintenance of shared parts of the apartment building;

b) Provisions on remuneration of each member of the management board and expenses for operation of the management board;

c) Delegation of the responsibility for collecting fees or signing on behalf of the management board for approval of expenditures on operation of the management board, for signing written requests for withdrawal of fees for maintenance of shared parts of the apartment building and signing documents on payment of costs to the unit carrying out maintenance or operator;

d) Provisions on procedures for withdrawal of money and specific documents serving the procedures for withdrawal of money from the accounts managed by the management board;

dd) Delegation of the responsibility for recording and managing books, invoices and vouchers on revenue and expenses of the management board;

e) Provisions on maximum cash which the management board is entitled withdraw for payment directly to the unit carrying out maintenance of the shared parts of the apartment building; and provisions on the maximum funding which the management board is entitled to use for unscheduled maintenance work without holding an apartment building meeting or seeking opinions from the apartment building owners for decision;

g) Provisions on penalties for violations arising from payment not made for intended purposes or appropriation of funding managed by the management board or violations arising from recording or management of books, invoices and vouchers on revenue or expense;

h) Provisions on other relevant contents.

Article 25. Voting for passing of decisions of apartment building management boards

1. Decisions of the management board of an apartment building or apartment building complex are passed by voting or casting ballots according to the operating regulation of the management board and specified in the minutes of meeting bearing signatures of the meeting secretary and members of the management board participating in the meeting and seal (if any) of the management board. Where affirmative votes are cast by 50% of the management board members, the final result shall be determined according to the vote of the head, or deputy head presiding over the meeting (in the absence of the head), except for the cases mentioned in Clauses 2 and 3 of this Article.

231. Regarding a multiple-owner apartment building, the following proposals shall be only passed if they are approved by at least 50% of the total number of members of the management board of the apartment building or apartment building complex:

a) Proposal for change of the operator;

b) Decision on selection of an unit carrying out maintenance;

c) Proposal for change of prices of apartment building operation services;

d) Management board’s proposals and requests submitted to the investor during the management and use of apartment buildings;

dd) Other cases decided by the apartment building meeting.

3. 32 Regarding the decision on use of fees for maintenance of the shared area of a multi-owner apartment building, the voting shall be carried out as follows:

a) If the management board of the apartment building decides to maintain the building’s shared area, such decision must be approved by 75% of the management board members;

b) If the apartment building management board decides to maintain the shared area of the whole apartment building complex, such decision shall be approved by at least 75% of the management board members; if the shared parts of one or several blocks in the complex, such decision shall be approved by at least 75% of the management board members who are representatives such one or several blocks.

Article 26. Dismissal or discharge of members of management boards or discharge of apartment building management boards

1. A member of the management board of an apartment building or apartment building complex is dismissed in the following circumstances:

a) The member no longer participates in or applies for dismissal from the management board;

b) The member is no longer the owner of an apartment or other area in the apartment building (in the case of a multi-owner apartment building);

c) The member relocates to another place;

d) Head of the management board of an apartment building block separated from the apartment building complex in the case prescribed in Point b Clause 2 Article 21 of this Regulation;

dd) Member of the management board of an apartment building block merged into a apartment building complex in the case prescribed in Clause 3 Article 21 of this Regulation.

2. The management board or a member of the management board of an apartment building or apartment building complex is discharged as requested by the management board or the representatives of the apartment owners in the following cases:

a) The management board fails to report the result of its operation to the apartment building meeting as prescribed in this Regulation;

b) The management board fails to operate after it is elected;

c) The member violates the operating regulation or regulations on revenue and expenses of the management board;

d) The member fails to participate in the operation of the management board for 06 consecutive months or fails to participate in at 30% of the total number of meetings of the management board in 01 year.

3. Members of the block management board are re-elected as follows:

a) If a replacement for the management board or for a head or deputy head of the management board is elected, an irregular apartment building meeting must be held to make the decision according to Article 14 of this Regulation. If a deputy head being the representative of the investor is dismissed or discharged, the investor shall appoint another representative to act as a replacement without holding an irregular apartment building meting;

b) If a management board’s member other than that prescribed in Point a of this Clause is elected, the management board shall propose a replacement and send such proposal to the representatives of the apartment owners to seek their opinions. If such proposal is approved by at least 50% of the representatives of the owners of the transferred apartments or a smaller percentage decided by the apartment building meeting, the proposed person is recognized as a member of the management board. If there is an insufficient number of persons agreeing to the proposal as prescribed in this Point, an irregular meeting of such block must be held to elect a replacement in accordance with Article 14 of this Regulation.

4. Members of the management board of an apartment building complex are re-elected as follows:

a) If a replacement for the apartment building complex management board or a replacement for the head of the management board is elected, an irregular meeting of the apartment building complex must be held to make a decision as prescribed in Article 14 of this Regulation;

b) If an apartment building complex management board’s member other than that prescribed in Point a of this Clause is elected, the management board shall propose a replacement and send such proposal to the representatives of the apartment owners in the block to seek their opinions. If such proposal is approved by at least 50% of the representatives of the owners of the transferred apartments or a smaller percentage decided by the apartment building meeting, the proposed person is recognized as a member of the apartment building complex management board. If there is an insufficient number of persons agreeing to the proposal as prescribed in this Point, an irregular meeting of such block must be held to elect a replacement in accordance with Article 14 of this Regulation.

In the case of dismissal or discharge of a deputy head of the management board of an apartment building complex who is the representative of the investor, the investor shall appoint another representative to act as a replacement without holding an irregular meeting of the apartment building complex.

Section 3. MANAGEMENT AND OPERATION OF APARTMENT BUILDINGS

Article 27. Apartment building operator33

1. An apartment building operator may be the investor or another unit that has satisfied all conditions concerning function and capacity prescribed in Clause 2 Article 105 of the Law on Housing.

2. The investor shall organize management and operation of the apartment building until the first apartment building meeting is held. If the apartment building has an elevator system and the investor does not satisfy the conditions concerning function and capacity prescribed in Clause 2 Article 105 of the Law on Housing, the investor must hire a unit that satisfies such conditions to manage and operate the apartment building.

3. After the first apartment building meeting is held, the selection of an apartment building operator shall be subject to the following regulations:

a) If an apartment building has no elevator system, the apartment building meeting shall decide to operate and manage the apartment building itself according to the self-governance method or hire a unit that satisfies the conditions concerning function and capacity to manage and operate the apartment building; 

b) If the apartment building has an elevator system and the investor satisfies the conditions concerning function and capacity prescribed in Clause 2 Article 105 of the Law on Housing and wishes to participate in management and operation, the management board and the investor may conduct negotiation so that the investor directly signs an apartment building management and operation service contract;

c) If the apartment building has an elevator system and the investor fails to satisfy the conditions concerning function and capacity prescribed in Clause 2 Article 105 of the Law on Housing and does not wish to participate in management and operation or if the investor wishes to participate in management and operation but fails to satisfy the requirements agreed upon in the service contract, the apartment building meeting shall decide to select another unit satisfying the conditions concerning function and capacity as prescribed by law to manage and operate that apartment building.

4. Each apartment building shall have only 01 operator to manage and operate its shared parts. An apartment building complex may have one operator or each apartment building in the apartment building complex may have its own operator as decided by the apartment complex meeting. If each building in the apartment complex has its own operator, the management board of the apartment building complex shall reach an agreement with all operators on the management and operation of shared technical facilities and civil engineering systems in the apartment building complex.

5. The operator may conclude service contracts with other service providers to perform the management and operation work, provided the operator is responsible for service quality under the terms and conditions specified in the service contract signed with the apartment building management board.

Article 28. Publishing of information concerning an operator34

1. Any operator that wishes to publish its information on the web portal of the Department of Construction of province where its head office is located or of the Housing and Real Estate Market Management Agency shall send the information to be published (its name, full name of the legal representative, contact address and phone number) to the Department of Construction of province where its head office is located or the Housing and Real Estate Market Management Agency.

2. If there is any change of the information prescribed in Clause 1 of this Article or when the operating unit is shut down or dissolved or declared bankrupt, the operator must notify the Department of Construction of province where its head office is located or the Housing and Real Estate Market Management Agency for modification or removal of published information.

3. If the authority publishing information or the competent authority conducts inspection and discovers that the operating unit has been shut down or dissolved or declared bankrupt or failed to meet prescribed requirements for performing the operation work, the information concerning that operator published on the web portal of the authority that published such information shall be removed.

Article 29. Apartment building management and operation service contract

135. The management and operation of the apartment building must be carried out under an apartment building management and operation service contract signed between the operator and the management board of that apartment building.

The service contract signed by the parties must include the main contents prescribed in Clause 2 of this Article and made by referring to the template of service contract stated in the Appendix 02 to this Regulation.

2. An apartment building management and operation service contract shall contain the following contents:

a) Full name and address of the representatives signing the contract;

b) Scale and area of shared parts both inside and outside the apartment building which should be managed and operated;

c) Contents and requirements concerning quality, quantity, time and place of provision of management and operation services;

d) Prices of management and operation services per m² of usable area; and method of payment of fees;

dd) Duration of the service contract;

e) Cases in which the contract is terminated;

g) Rights and obligations of the parties; responsibilities of the parties for cooperation; and resolution of disputes regarding the content of the contract;

h) Other relevant agreements;

i) Effect of the contract.

3. The acceptance, payment, finalization and liquidation of the apartment building management and operation service contract shall be carried out under as the contract and the civil law.

Article 30.  Prices of apartment building management and operation services

1. The price of apartment building management and operation service shall be determined as prescribed in Article 106 of the Law on Housing depending on each type of apartment building by reaching agreement with the operator. If the apartment building has been transferred and put into use but the first apartment building meeting has not been held, the price of management and operation service shall be decided by the investor and specified in the contract for sale and purchase or lease purchase of an apartment. After the apartment building meeting is held, the service price shall be determined by the apartment building meeting by reaching agreement with the operator.

2. The service price is expressed in Vietnamese dong per m² of usable area of an apartment or other areas in an apartment (determined based on the carpet area).

3. Regarding mixed-use apartment buildings, the price of management and operation service applicable to the office, services or commercial areas and privately owned areas used as car parking lots shall be determined following the principles below:

a) The price of management and operation service applicable to the office, services or commercial areas shall be agreed upon by the parties on the basis of the business activities, services or offices and of each location in the apartment building;

b) The price of management and operation service applicable to the privately owned areas used as car parking lots shall be agreed upon by the parties and may be lower than the service price applicable to apartments in the same block. This regulation also applies to the privately owned areas used as car parking lots in residential apartment buildings;

c) If the parties fail to reach agreement to the service price prescribed in Points a and b of this Clause, the service price shall be determined according to the service price brackets published by the People's Committee of the province where the apartment building is located.

4. The apartment building operator shall determine and collect fees for management and operation of the apartment building from owners and occupants on the basis of the fees determined in this Article.

Article 31. Fees for management and operation of apartment buildings

1. Apartment building owners and occupants shall pay fees for apartment building management and operation on a monthly or periodic basis (including the case in which apartments or other areas in the apartment building have been transferred but have not been used) so as for the operator to perform the tasks mentioned Clause 1 Article 10 of this Regulation.

2. The fees for apartment building management and operation equals are calculated by multiplying the price of management and operation service prescribed in Article 30 of this Regulation and the usable area (m²) of the apartment or of areas other than apartments in the apartment building.

3. The usable area of an apartment or other area other than an apartment in the apartment building used as the basis for calculation of the fees for management and operation is prescribed as follows:

a) If a Certificate of Land Use Rights, Ownership of House and Property on Land (hereinafter referred to as “the Certificate”) has been issued, the area recorded in the Certificate shall be used as the basis for calculation of the management and operation fees;

b) If the Certificate has not been issued, the owner’s privately owned usable area (which is the carpet area determined as prescribed in Clause 2 Article 101 of the Law on Housing) shall be used as the basis for determination of the fees for management and operation. Such area is specified in the contract for sale and purchase or lease purchase of an apartment or determined according to actual measurements.

4. Regarding state-owned apartment buildings, the fees for management and operation are collected on the basis of the service price prescribed in Point a Clause 5 Article 106 of the Law on Housing.

Section 4. MAINTENANCE OF APARTMENT BUILDINGS

Article 32. Principles of maintenance of apartment buildings

1. Apartment building owners shall maintain the privately owned parts and pay fees for maintenance of the apartment building parts under shared ownership to maintain the residential housing quality and ensure safety during use.

2. The maintenance of the privately owned parts must not affect the privately owned parts of other owners and the works or equipment under shared ownership or for shared use of the apartment building.

3. The maintenance of the shared parts of residential apartment buildings and mixed-use apartment buildings in which the shared parts of the apartment section are not separated from those of the office, services and commercial section shall be carried out according to the maintenance plan approved by the apartment building meeting and procedures for maintenance of the block or the procedures for maintenance of equipment which have been established under this Regulation.

4. The maintenance of the shared parts of residential apartment buildings and mixed-use apartment buildings in which the shared parts of the apartment section are not separated from those of the office, services and commercial section shall be carried out following the principles below:

a) For the shared parts of the apartment section and shared parts of the whole bock, the owners shall carry out maintenance according to the plan approved by the apartment building meeting and the established procedures, except where there is unexpected damage caused by a natural disaster or fire;

b) For the shared parts of the office, services and commercial section, the owners of such section shall carry out maintenance according to the procedures maintenance of the block and the procedures for maintenance of the equipment which have been formulated according to regulations.

5. The maintenance of the shared parts of an apartment building complex shall be carried out by the owners and occupants of such apartment building complex.

6. The owners and the management board are only permitted to hire individuals or units that are qualified to carry out maintenance.

Article 33. Plan for maintenance of apartment building parts under shared ownership

1. The plan for maintenance of apartment building parts under shared ownership is approved by the apartment building meeting to apply to the cases prescribed in Clause 3 and Point c Clause 4 Article 32 of this Regulation.

2. The investor shall prepare a maintenance plan and report it to the first apartment building meeting for approval; for the forthcoming apartment building meetings, the management board shall cooperate with the operator or a qualified unit to prepare a maintenance plan and report it to the apartment building meeting for approval.

3. The plan for maintenance of apartment building parts under shared ownership applicable to the cases prescribed in Clause 3 and Point a Clause 4 Article 32 of this Regulation shall be prepared and approved according to the procedures for maintenance of the construction parts of the block and the procedures for maintenance of the equipment provided by the investor and condition of the apartment building parts under shared ownership.

4. The plan for maintenance of apartment building parts under shared ownership applicable to the cases prescribed in Clause 3 and Point a Clause 4 Article 32 of this Regulation shall contain the following:

a) Items to be maintained in the year and expected to be maintained for the next 03 to 05 years; and items expected to undergo irregular maintenance in the year (if any);

b) Time and schedule for implementation for each item which needs to be maintained in the year;

c) Proposed fees for maintenance of each maintenance item;

d) Responsibility of the owners for supporting and facilitating maintenance in relation to the areas which need to be maintained; responsibility of the apartment building management board for inspecting, supervising and commissioning the maintenance work;

dd) Other relevant contents.

Article 34. Items of apartment buildings eligible for use of fees for maintenance of shared for maintenance

1. Maintenance of the items and areas under shared ownership prescribed in Points a and b Clause 2 Article 100 of the Law on Housing.

2. Maintenance of the shared equipment of the apartment building including elevators, generators, water pumps, ventilation system, system for supply of power for lighting and domestic purposes, electrical equipment for shared use, water supply and drainage system, gas supply system, central heating system, broadcasting and television, communications, fire-fighting and prevention, lightning rods and other equipment for shared use in the apartment building.

3. Maintenance of the external technical infrastructure system connected with the apartment building; public works prescribed in Point d Clause 2 Article 100 of the Law on Housing.

4. Dealing with wastewater blockages, periodic pumping of septic tanks; cultivation of microorganisms in the drainage system of the apartment building.

5. Other apartment building items under shared ownership of the apartment building owners as agreed in the contracts for sale and purchase or lease purchase of an apartment or prescribed in the law on housing.

Article 35. Signing maintenance contracts and carrying out maintenance of apartment building parts under shared ownership

1. The apartment building management board or owners of the office, services and commercial section shall select and sign a maintenance contract according to the following regulations:

a) For the construction parts of the block, the operator (if the apartment building has an operator having the capability for maintenance) is hired to carry out maintenance; if the department building does not require an operator or has one but such operator does not have capability for maintenance, another unit is hired to carry out maintenance;

b) For the shared equipment, the operator may be hired or authorized to hire the equipment supplier or another unit having capability for maintenance of such equipment to carry out maintenance. If equipment needs replacing, the equipment supplier must provide a warranty of the product for the warranty period stipulated by the manufacturer; upon expiration of the warranty period, the maintenance or replacement shall be carried out in accordance with this Point.

2. The unit carrying out maintenance shall carry out maintenance according to the procedures for maintenance established in accordance with regulations, ensure safety of the owners and occupants during maintenance, and adhere to the schedule and agreements in the signed maintenance contract.

3. The maintenance contract is made and signed by the apartment building management board or the owner of the office, services and commercial section and the unit carrying out maintenance in accordance with law. If an apartment building does not require a management board, the representative of the owners managing the apartment building shall sign the contract with the unit having the capability for maintenance.

4. Upon finishing the maintenance work, the parties shall organize commissioning of the maintenance work. Payment and finalization of the maintenance fees shall be carried out under the contract and stated in invoices and vouchers in accordance with law.

Article 36. Opening accounts for management, transfer and management of fees for maintenance of shared parts of multiple-owner apartment buildings

1. The investor shall open an account at a credit institution operating in Vietnam to temporarily manage fees for maintenance of the shared parts of the multiple-owner apartment building in accordance with the Government’s Decree 99/2015/ND-CP dated October 20, 2015 (hereinafter referred to as “Decree No. 99/2015/ND-CP”).

2. For the residential apartment buildings and mixed-use apartment buildings in which the shared parts of the apartment section are not separated from those of the office, services and commercial section, after the first apartment building meeting is held, the account opening, and the transfer and management of fees for maintenance of the shared parts shall be carried out as follows:

a) 36 The apartment building management board shall open a special-purpose deposit account at a credit institution currently operating in Vietnam to manage and use fees for maintenance of the shared parts of the apartment building block;

b) The investor shall, within 07 working days from the date on which the management board submits the written request for transfer of maintenance fees, transfer the maintenance fees collected from the purchasers and the lease purchasers and the maintenance fees payable by the investor for the areas that are retained not for sale or lease purchase or have not been sold or lease purchased as prescribed in Point b Clause 1 Article 108 of the Law on Housing to the account opened by the management board as prescribed in Point a of this Clause for management and use in accordance with law;

c) 37 The holder of the deposit account for fees for maintenance of residential apartment buildings may be a single member or several members of the management board in the name of the co-holders.

The co-holders of the deposit account for fees for maintenance of mixed-use apartment buildings shall include at least 03 members of the management board. The maximum number of members shall be decided by the apartment building meeting. These co-holders shall be composed of at least 01 representative of the owner of the apartment section, 01 representative of the owner of another area (if any), 01 representative of the investor (if any) and some members (if any) decided by the apartment building meeting.

The term of deposits and name of the holder of the deposit account for maintenance fees prescribed in this Clause are specified in regulations on revenue and expenses of the management board approved by the apartment building meeting.”

3. For the residential apartment buildings and mixed-use apartment buildings in which the shared parts of the apartment section are not separated from those of the office, services and commercial section, after the first apartment building meeting is held, the account opening, and the transfer and management of fees for maintenance of the shared parts shall be carried out as follows:

a) 38 The apartment building management board shall open a special-purpose deposit account at a credit institution currently operating in Vietnam to manage and use fees for maintenance of the shared parts of the apartments and fees for maintenance of the shared parts of the entire apartment building block;

b) The term of deposits and holder of the deposit account for the maintenance fees prescribed in Point a of this Clause shall be determined as in the case of residential apartment buildings prescribed in Point c Clause 2 of this Article;

c) The owner of the area of the office, services and commercial section shall themself manage the fees retained as prescribed in Point b Clause 4 of this Article for maintenance of the shared parts of such section;

d) The transfer of fees for maintenance of the shared parts of the apartment building prescribed in this Clause shall be carried out as prescribed in Clause 4 of this Article.

4. The transfer and management of the maintenance fees in the case prescribed in Clause 3 of this Article shall be subject to the following regulations:

b) The investor shall, within 07 working days from the date on which the management board submits the written request for transfer of maintenance fees, transfer the maintenance fees collected from the purchasers and the lease purchasers and the maintenance fees payable by the investor for the area of apartments that are retained not for sale or lease purchase or have not been sold or lease purchased as prescribed in Point b Clause 1 Article 108 of the Law on Housing to the account opened by the management board as prescribed in Point a Clause 3 of this Clause for management and use in accordance with law;

b) 39 For the maintenance fees payable by the investor for the office, services and commercial areas, the investor shall transfer such fees at the rate agreed with the purchasers and lease purchasers in the contracts for sale and purchase or lease purchase of an apartment prescribed in Clause 5 Article 108 of the Law on Housing to the account opened by the management board as prescribed in Point a Clause 3 of this Article for management and maintenance of the shared parts of the whole block; for the remaining fees, the investor is entitled to manage and use them as prescribed in Point c Clause 3 of this Article.

The aforementioned maintenance fees may be calculated according to the percentage (%) of the floor area of each dedicated section in an apartment building divided (:) by the gross floor area of such apartment building.

5. In the case of establishment of an apartment building complex, based on the purpose of each block, the management board of the apartment building complex must open separate accounts for management of the fees for maintenance of each block in accordance with Clauses 2, 3 and 4 of this Article.

6. The transferor and the transferee of the fees for maintenance of the apartment building parts under shared ownership prescribed in this Article shall follow procedures for finalization of the such fees before transfer of the fees. Documents concerning finalization of the fees for maintenance of the shared parts include:

a) Record of determination of the areas and equipment under shared ownership of the apartment building in accordance with the Law on Housing;

b) Record of determination of the total fees for maintenance which have been collected in accordance with regulations of law on housing specifying the amount of money already collected from the purchasers and the lease purchasers and the amounts payable by the investor in accordance with regulations; the name and number of the account and place of opening of the deposit account for the maintenance fees currently managed by the investor;

c) List of maintenance works of the shared parts which have been performed by the investor enclosed invoices and vouchers proving the amount of money for maintenance paid to the unit carrying out maintenance and the remaining maintenance fees after deducting the amount of fees used by the investor for the maintenance works (if any).

If the maintenance works require warranty and are still under warranty as prescribed in the Law on Housing, the investor is not permitted to deduct the amount of money for such works from the amount of maintenance fees to be transferred to the apartment building management board.

7. 40 (annulled)

8. 41 (annulled)

Article 37. Use of funds for maintenance of shared parts of multiple-owner apartment buildings

1. The fees maintenance of the shared parts of an apartment building block may be only used for maintenance of the shared parts of such block. The apartment building management board is only entitled to use the fees for maintenance of the apartment building parts under shared ownership for the items prescribed in Article 34 of this Regulation. If the apartment building has to be demolished, the remaining fees for maintenance shall be used to support relocation or shall be included in the fees for maintenance of the shared parts of the new apartment building after the apartment building is re-constructed.

2. 42 The apartment building management board shall publish information about the opened deposit account for management of maintenance fees at the apartment building meeting and shall not change this account, and publish the use of such fees (if any) on the apartment building’s bulletin board. The fees for maintenance of the shared parts of the apartment building shall be used in accordance with the Law on Housing and this Regulation. Books, invoices and vouchers should be available for monitoring and management purposes.

3. If it is required to open an account for management of the maintenance fees prescribed in Point a Clause 3 Article 36 of this Regulation, the apartment building management board and the investor shall agree to divide the fees into ones to be used for maintenance of the shared parts of the whole block and ones to be used for maintenance of the shared parts of the apartment section.

When the shared parts of the apartment section require maintenance, the management board is only entitled to use the divided portion of fees as agreed for maintenance. If such fees are used in full, the owners of the apartment section shall jointly make contribution. The divided portion of fees for maintenance of the shared parts of the whole block may be only used for maintenance of the shared parts of such whole block. If such portion is used in full, the owners of the apartment section and the owners of the office, services and commercial section shall jointly make contribution. The investor and the apartment building management board may agree to open 02 different accounts for management of 02 portions of the fees prescribed in this Clause.

4. The credit institution which is currently managing the deposit account for the fees for maintenance of the apartment building parts under shared ownership shall transfer money to the account of the party carrying out maintenance within 03 working days from the date of receipt of the application from the apartment building management board. The application for transfer of money includes the following documents:

a) An application form of the management committee, specifying the reason for transfer of money and the amount of money to be transferred to the party carrying out maintenance;

b) Minutes of the management board meeting on withdrawal of the maintenance fees;

c) Maintenance plan approved by the apartment building meeting, except for the case of irregular maintenance;

d) Maintenance contract signed with an individual or unit having capability for maintenance as prescribed by law.

5. In the case of performance of maintenance work with a contract value within the limit for which the apartment building meeting permitted withdrawal of cash as stated in the regulations on revenue and expenses of the management board, after receipt of the application prescribed in Clause 4 of this Article, the credit institution shall follow the procedures for withdrawal of cash in order for the management board to make payment directly to the party carrying out maintenance.

6. If unscheduled maintenance is required and the payment for which is permitted according to regulations on revenue and expenses of the management board, the management board shall send an application form for transfer of money accompanied by the minutes of management board meeting on withdrawal of money and the signed maintenance contract to the credit institution where the deposit account for the maintenance fees is opened. According to the application, the credit institution shall transfer money to the party carrying out maintenance within 03 working days. The transfer of money to an account or payment in cash shall be made in accordance with Clause 4 or 5 of this Article.

7. For maintenance of the shared parts of the blocks in an apartment building complex, the maintenance fees shall be used according to the following regulations:

a) In the case of maintenance for the shared parts of the entire apartment building complex, the fees for maintenance of the shared parts of each block in the complex shall be equally deducted for maintenance;

b) In the case of maintenance of the shared parts of several blocks in the complex, the fees for maintenance of the shared parts of the relevant blocks shall be equally deducted for maintenance;

c) The deduction from fees for maintenance of the snared parts prescribed in Points a and b of this Clause shall be made as prescribed in Clauses 4, 5 and 6 of this Article.

Section 5. RIGHTS AND RESPONSIBILITIES OF ORGANIZATIONS AND INDIVIDUALS FOR MANAGEMENT AND USE OF APARTMENT BUILDINGS

Article 38. Rights and responsibilities of investors

143. Carry out management and operation of the apartment building as prescribed in Clause 2 and Point b Clause 3 Article 27 of this Regulation. If the investor fails to have the function and capability for management and operation or has such function and capability but does not participate in management and operation of the apartment building, such investor may introduce another unit which has such function and capability for management and operation in accordance with Clause 2 Article 105 of the Law on Housing and in order for the apartment building management board to consider selecting an unit to carry out management and operation of the apartment building.

2. Collect fees for maintenance of the apartment building parts under shared ownership in as prescribed in Articles 108 and 109 of the Law on Residential Housing and Decree No. 99/2015/ND-CP, and transfer them to the apartment building management board in accordance with regulations of law on residential housing and this Regulation.

344. Preside over the first apartment building meeting and appoint a person to participate in the apartment building management board and to vote at the apartment building meetings in accordance with this Regulation if the investor still owns the apartment(s) and other areas in the apartment building.

4. Transfer the systems of infrastructure outside the apartment building to the local line management agency in accordance with law; and to prepare apartment building dossiers and transfer them to the apartment building management board in accordance with this Regulation.

5. Manage and use the apartment building owners and occupants’ amenities which are assigned by the State or constructed for business for the intended purpose stated in the contents of the approved project.

6. Maintain their privately owned parts; provide compensation if the maintenance or failure to carry out maintenance causes damage to other owners.

7. Request the competent authority to handle infringements of assets under their legal ownership or acts obstructing legal business as stated in contents of the approved project. The competent authority shall handle the violations committed by organizations and individuals in relation to the assets or legal business activities of the investor.

8. Cooperate with the apartment building management board to resolve difficulties that arise from management and use of the apartment building.

9. Purchase compulsory fire and explosion insurance in accordance with regulations of law on fire fighting and prevention and law on insurance business.

10. Provide compensation for damage to the aggrieved party as agreed or prescribed by law; comply with the competent authority’s decision on handling and imposing penalties for violations.

11. Other rights and responsibilities prescribed by law.

Article 39. Rights and responsibilities of apartment building owners

1. Regarding multiple-owner apartment buildings, owners have the following rights and responsibilities for managing and using the apartment buildings:

a) Reserve the right to own or use their privately owned parts; to use the shared parts in accordance with regulations of law on residential housing and this Regulation. Take responsibility for maintaining the privately owned parts in accordance with regulations of law on housing and this Regulation; for providing compensation for damage to caused by the maintenance work or failure to carry out maintenance other owners;

b) Request the investor, the apartment building management board or People's Committee of the ward to hold an apartment building meeting in accordance with this Regulation; to participate in and vote on contents in apartment building meetings in accordance with the Law on Housing and this Regulation;

c) Request the investor, the operator or the apartment building management board to provide information or publish contents relating to management and use of the apartment building;

d) Fully comply with the decisions of the apartment building meetings even if they do not participate in such meetings; comply with the competent authority’s decisions to handle and impose penalties for violations;

dd) Fully and punctually pay fees for management and operation of the apartment building, fees for maintenance of the shared parts and other charges and fees under regulations of law or agreement with the service provider.

Any owner that fails to pay fees for management and operation in accordance with regulations shall be dealt with under the apartment building management and operation services signed between the apartment building management board and the operator;

e) Comply with the internal rules and regulations on management and use of the apartment building; discover and promptly notify violations arising from management and use of the apartment building the operator or the competent authority;

g) Enable and assist the licensed unit to carry out maintenance of the shared parts in accordance with regulations;

h) Restore the status quo and provide compensation for damage caused to the areas or equipment under shared ownership or to a privately owned area or equipment of another owner; to be dealt with in accordance with regulations law and to provide compensation for damage for the acts obstructing the legal business activities of the owners of the office, services and commercial section;

i) Purchase compulsory fire and explosion insurance in accordance with regulations of law on fire fighting and prevention and law on insurance business;

k) Comply with other relevant regulations of law.

2. For single-owner apartment buildings, the owner entitled to use the apartment building may exercise the rights and responsibilities set out Points b, c, d, e and k Clause 1 of this Article.

Article 40. Rights and responsibilities of occupants other than apartment building owners

1. Use the privately owned parts and shared parts of the apartment building in accordance with regulations of law on housing and this Regulation.

2. Exercise the rights and obligations as agreed upon with the owner if the occupant is not the owner.

3. Participate in apartment building meetings (in the case of single-owner apartment buildings); or participate in and vote at apartment building meetings on behalf of the owner if the owner does not participate in such meetings (in the case of multi-owner apartment buildings); if multiple persons jointly use a single apartment or other area of the apartment building, one person is authorized to act as a representative to participate in and vote at apartment building meetings.

4. Exercise the relevant rights and responsibilities prescribed in Points b, c, d, dd, e, g, h and k Clause 1 Article 39 of this Regulation.

Article 41. Rights and responsibilities of apartment building management boards

1. The management board of a multiple-owner apartment building may exercise the rights and responsibilities prescribed in Clause 1 Article 104 of the Law on Housing and the following rights and responsibilities:

a) Receive, archive and manage apartment building dossiers; and provide a set of the dossiers transferred by the investor to the operator in the case where the apartment building requires an operator as prescribed in Clause 2 Article 5 of this Regulation, unless the investor is also the operator;

b) Prepare contents of and hold apartment building meetings in accordance with this Regulation; publish contents of the signed management and operation contract and the signed maintenance contract at the apartment building meeting;

c) Report operation, revenue and expenses of the management board, maintenance work and collection and use of fees for maintenance of the apartment building parts under shared ownership in order for the apartment building meeting to carry out inspection and supervision, and grant approval therefor under this Regulation;

d) Exercise rights on behalf of the owner to the apartment building parts under shared ownership in accordance with the Law on Housing and this Regulation; do not incite other persons to cause disorder or loss of security within the apartment building;

dd) Be responsible to the apartment building owners for the assigned tasks; and comply with the operating regulations and regulations on revenue and expenses of the management board;

e) Request the competent authority to hold an apartment building meeting and recognize the apartment building management board under this Regulation; hold an apartment building meeting to decide to replace the operator if such operator is no longer eligible to manage and operate the apartment building under this Regulation;

g) Request the competent authority to deal with the case where the investor fails to transfer the apartment building dossiers or fees for maintenance of the apartment building parts under shared ownership in accordance with regulations;

h) Transfer dossiers, books and documents under its management to the new management board after the latter is recognized;

i) Any member of the management board violating this Regulation and relevant regulations of law shall, depending on the seriousness of the violation, be dealt with according to this Regulation or shall face a penalty for an administrative violation or a criminal prosecution and shall provide compensation for damage caused to the aggrieved party;

k) 45 The management board shall cooperate with the People’s Committee of the commune where the apartment building is located in exercising its rights and responsibilities for management, use and operation of apartment buildings in accordance with the Law on Housing and this Regulation; abiding by decisions issued by competent authorities and exercising other rights and responsibilities;

l) Exercise other rights and responsibilities stipulated in the operating regulations and regulations on revenue and expenses of the management board adopted by the apartment building meeting and prescribed in this Regulation.

2. The management board of a single-owner apartment building may exercise the rights and responsibilities prescribed in Clause 2 Article 104 of the Law on Housing and the relevant rights and responsibilities enshrined in Points a, b, dd, e, g, h, i, k and 1 Clause 1 of this Article.

Article 42. Rights and responsibilities of an apartment building operator

1. Manage and operate the apartment building in accordance with this Regulation and the signed management and operation service contract with the apartment building management board or the representative managing the apartment building (in the case of apartment buildings which do not require a management board); and maintain the apartment building parts under shared ownership under the maintenance contract if it has the capability for maintenance.

2. Sign sub-contracts with service providers (if any) with respect to management and operation of the apartment building; supervise the provision of services by such providers.

3. Notify in writing the collection and payment of relevant fees; notify important requirements and contents to apartment building occupants if such unexpected event as a natural disaster, disease or fire occurs; provide guidance on installation of equipment in the privately owned parts of owners.

4. Collect fees for management and operation of the apartment building as agreed with the apartment building owners and occupants; collect fees and pay remuneration to members of the apartment building management board under a decision of the apartment building meeting.

5. Every 06 months or at the request of the competent authority, notify the management and operation of the apartment building to the apartment building management board; notify the management and operation at the apartment building meeting; collect comments from occupants on the provision of apartment building management and operation services.

6. Cooperate with the apartment building management board to resolve other relevant issues during management and operation of the apartment building.

7. Comply with the competent authorities’ decisions on handling and imposition of penalties for violations.

8. Exercise other rights and responsibilities as stipulated in the apartment building management and operation service contract or as prescribed by relevant regulations of law.

Chapter IV

RESOLUTION OF DISPUTES AND HANDLING OF VIOLATIONS ARISING FROM MANAGEMENT AND USE OF APARTMENT BUILDINGS

Article 43. Resolution of disputes

1. Disputes over ownership of an apartment building shall be resolved on the basis of negotiation or conciliation in accordance with regulations of law on residential housing, this Regulation and relevant law; in case the negotiation or conciliation fails, a People's Court is requested to resolve it according to law.

2. Disputes over the fees for management and operation of an apartment building, and transfer, management and use of fees for maintenance of apartment building parts under shared ownership shall be resolved by the People's Committee of the province where the apartment building is located; in the case of disagreement with the decision of the provincial People's Committee, a People's Court may be requested to resolve the dispute in accordance with law.

346. Disputes between members of the management board shall be resolved 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, discharged or replaced but fails to transfer the seal, the newly established management board reserves the right to request the competent seal registration and issuance agency to revoke and transfer 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, discharged or replaced but fails to transfer the account for management of fees for maintenance of shared parts of the apartment building or the account for management of operation of the management board, the newly established management board reserves 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, discharged or replaced management board, and carry out procedures for transferring such accounts to the newly established management board in conformity with regulations hereof and relevant regulations of law.

4. Disputes between the apartment building management board and an apartment building owner or occupant over election, dismissal, discharge or replacement of a member of the apartment building management board shall be resolved by negotiation. If the negotiation fails, an apartment building meeting may be held to resolve such disputes.

5. Disputes over a apartment building management and operation service contract between the service provider and the operator shall be resolved under the agreement between the parties; in the case of failure to reach an agreement, a People's Court may be requested to resolve such disputes in accordance with law.

Article 44. Handling of violations

1. Any management board or member of the apartment building management board violating regulations on management and use of the apartment building and this Regulation shall, depending on the seriousness of the violation, be discharged or replaced in accordance with this Regulation and shall face a penalty for an administrative violation or criminal prosecution in accordance with law.

2. If an apartment building meeting is not held under this Regulation, the decisions or results of such apartment building meeting are not recognized and an apartment building meeting must be held to re-make decisions.

3. Where management board does not make decisions in accordance with the operating regulations or regulations on revenue and expenses, such decisions are not recognized.

4. Any person abusing his/her position and power or any apartment building owner or occupant violating the regulations on management and use of the apartment building shall, depending on the seriousness of the violation, face a penalty for an administrative violation or criminal prosecution.

5. Any person committing a violation and causing damage must provide compensation for such damage in accordance with law.

Chapter V

TRANSITIONAL CLAUSES

Article 45. Transitional regulations on operating model of management committee and management of fees for maintenance of apartment building parts under shared ownership

1. For apartment buildings for which a management board has been established before the effective date of this Regulation but the management board has a need for reorganization of the operating or change in the number of the members or composition of the management board in accordance with the Law on Housing and this Regulation or separation from or merger into a management board, an apartment building meeting must be held to elect a management board in accordance with this Regulation.

2. For apartment buildings for which a management board has been established before the effective date of this Regulation and the management board has had operating regulations and regulations on revenue and expenses but such regulations do not comply with this Regulation or does not have operating regulations or regulations on revenue and expenses as prescribed in this Regulation, the management board must make or amend such regulations and notify the apartment building board for passing in accordance with this Regulation.

3. For apartment buildings for which a management board has been established before the effective date of this Regulation and which does not require a management board as prescribed in the Law on Housing and this Regulation, the management board shall hold an apartment building meeting to make a decision on operation of the management board.

4. Where the fees for maintenance of the apartment building parts under shared ownership have been transferred before the effective date of this Regulation, such fees shall be managed and used in accordance with the law on housing and this Regulation. The management board and the investor may agree to re-open a deposit account for management of the fees for maintenance of the apartment building parts under shared ownership in accordance with this Regulation but must notify to the forthcoming apartment building meeting thereof.

5. 47 From the effective date of this Circular, if the investor fails to transfer the apartment building dossier, the documents included in the apartment building dossier to be transferred are specified in Point a Clause 3 Article 5 of this Regulation.

Article 46. Transitional provisions on management and operation of apartment buildings

1. Apartment buildings which currently has an operator but which do not require an operator as prescribed in the Law on Housing, an apartment building meeting shall be held to decide whether or not the service contract signed with the operator is terminated.

2. 48 (annulled)

3. 49 (annulled)

Chapter VI

IMPLEMENTATION

Article 47. Responsibilities of the provincial People's Committees and Departments of Construction

1. Provincial People's Committees shall:

a) provide guidance on implementation of this Regulation within their provinces; promulgate specific regulations and guidance on management and use of apartment buildings for application within their provinces according to local conditions and this Regulation;

b) organize dissemination of the regulations on management and use of apartment buildings within their provinces;

c) issue price brackets for apartment building management and operation services prescribed in Clause 5 Article 10 of the Law on Housing;

d) organize enforced collection of fees for maintenance of apartment building parts under shared ownership in accordance with the law on housing and this Regulation;

dd) direct local competent authorities to receive facilities and infrastructure in investment projects for construction of residential housing in accordance with the content of the project approved by and the written approval for investment guidelines issued by the competent agency;

e) consider making decisions on management of residents in each block or apartment building complex in accordance with law;

g) carry out inspections and handle violations within their power or propose the competent authority to handle violations of the regulations on management and use of apartment buildings in accordance with law;

h) Assume other responsibilities prescribed by law.

2. Departments of Construction shall assist the provincial People's Committees to exercise the function of state administration of management and use of apartment buildings within their provinces; report to the Ministry of Construction the management and use of apartment buildings in their provinces every 06 months or on an annual basis or upon request.

Article 48. Responsibilities of district-level People's Committees50

A district-level People’s Committee has the responsibility to:

1. Report to the provincial People's Committee for its decision on delegation of responsibilities for administrative management in areas where apartment buildings are located, and resolve difficulties within its power.

2. 51 Decide or authorize the People's Committee of the commune where the apartment building is located to recognize the apartment building management board in accordance with this Regulation; receive the transferred apartment building dossier as prescribed in Point d Clause 3 Article 5 of this Regulation.

3. Inspect the management and use of apartment buildings; handle violations of the regulations on management and use of apartment buildings in their district within its power or request a competent authority to do so.

4. Assume other responsibilities delegated by the provincial People’s Committee and prescribed by law.

Article 49. Responsibilities of the communal People's Committees52

A communal People’s Committee has the responsibility to:

1. Disseminate and encourage organizations and individuals to comply with regulations of this Regulation and law on management and use of apartment buildings.

2. 53 Cooperate with management boards of local apartment buildings in supervising, inspecting and resolving difficulties that arise from the management and use of apartment buildings or report them to the district-level People’s Committee for consideration.

3. Cooperate with and enable apartment building operators to provide apartment building services within its commune.

4. 54 Organize and attend apartment building meetings in accordance with this Regulation; decide to recognize management boards of apartment buildings as assigned by the district-level People Committee.

5. Assume other responsibilities prescribed by law.

Article 50. Responsibilities of Management Agency for Housing and Real-estate Market

1. Provide guidance on and expedite the implementation of this Regulation.

2. Inspect the management and use of apartment buildings nationwide and recommend a competent authority to handle violations of the regulations on management and use of apartment buildings.

3. Cooperate with relevant agencies to provide training in and dissemination of regulations of law on management and use of apartment buildings nationwide.

4. Consolidate comments of organizations and individuals on difficulties arising and propose appropriate amendments to this Regulation.

5. Undertake other tasks relating to management and use of apartment buildings as prescribed in this Regulation or as directed by the Minister of Construction.

Difficulties that arise during the implementation of this Regulation should be promptly reported to the Ministry of Construction for instructions and appropriate amendments./.

APPENDIX 01:

SAMPLE INTERNAL RULES FOR MANAGEMENT AND USE OF APARTMENT BUILDINGS55 
(Enclosed with the Circular No. 02/2016/TT-BXD dated February 15, 2016 of the Minister of Construction)

INTERNAL RULES FOR MANAGEMENT AND USE OF APARTMENT BUILDINGS

Article 1. Regulations applicable to owners, occupants, temporary residents and guests of apartment buildings

1. Apartment building owners shall strictly comply with the Regulation on management and use of apartment buildings promulgated by the Ministry of Construction and these internal rules.

2. Every guest of an apartment building shall register and present his/her identity document at the front desk (if any) or at the security booth, and follow the instructions of the apartment building’s receptionist or security guard. Where necessary, the receptionist or security guard of the apartment building may keep the identity document for the purpose of ensuring security and safety of the apartment building. At an office, services and commercial section, this identity document is not required.

3. Every temporary resident in an apartment building shall register at the front desk (if any) or at the security booth and assume the responsibility to follow the procedures for registration of temporary residence at the police authority of ward in compliance with current regulations.

4. Occupants and temporary residents shall be responsible to the law for any violations against the Regulation on management and use of apartment buildings and these internal rules.

5. Regulations applicable to employees working at office, service and commercial sections shall be additionally imposed by the investor and the apartment building meeting in a manner that is appropriate to each apartment building.

Article 2. Prohibited acts in management and use of apartment buildings

1. Prohibited acts in management and use of apartment buildings are specified in Article 6 of the Law on Housing No. 65/2014/QH13 and Article 35 of the Government's Decree No. 99/2015/ND-CP providing instructions on the implementation of a number of Articles of the Law on Housing dated October 20, 2015 and relevant regulations of law.

2. Other acts exerting adverse influence on the community and occupants in apartment buildings shall be subject to the consideration and decision by an apartment building meeting.

Article 3. Regulations on use of shared parts of apartment buildings

Owners, occupants and guests of an apartment building must comply with the following regulations:

1. Use elevators and equipment for shared use for their intended purposes.

2. Do not cause damage to or commit violations against regulations on use of shared property of the apartment building.

3. Comply with parking regulations at designated parking areas.

4. Use the community house for its intended purposes under the Law on Housing.

5. Comply with fires safety regulations.

6. Comply with other regulations (if any) additionally imposed by the apartment building meeting in a manner that is appropriate to each apartment building.

Article 4. Regulations on damage repair, replacement or installation made in apartments or other privately-owned areas

1. If there is damage to an apartment or other privately-owned areas, the owner or the occupant is entitled to carry out repair or replacement provided that such repair or replacement does not cause damage to the shared parts and influence other owners.

2. The replacement, repair or installation of equipment must not change, deform or damage the structure of the apartment building.

3. The replacement or repair of damage to shared equipment attached to an apartment or other privately-owned area must be carried out in compliance with the Regulation on management and use of apartment buildings promulgated by the Ministry of Construction provided that such replacement or repair does not affect the privately owned parts of other owners. The owner must notify damage to the management board or the operator of the apartment building in order to carry out timely repair or replacement and facilitate such repair or replacement.

4. If there is any damage to equipment of the shared parts of the office, services and commercial section of the apartment building, the owner of that section shall carry out repair or replacement in accordance with the Regulation on management and use of apartment buildings promulgated by the Ministry of Construction.

5. The movement of equipment or appliances from an apartment or the movement of materials in course of damage repair must be notified to the management board or the operator of the apartment building. Such movement must be only made from 08:00 to 18:00 every day in order to avoid affecting activities of the apartment building.

6. Comply with other regulations (if any) additionally imposed by the apartment building meeting in a manner that is appropriate to each apartment building.

Article 5. Regulations on emergency response in apartment buildings

1. In the event of an emergency that may threaten life and safety of property in an apartment building, the owner or occupant in that apartment building must promptly report such emergency to the management board or the operator of the apartment building for handling.

2. In emergency case where the evacuation of people from the apartment building is necessary, it is required to follow instructions over a loudspeaker or emergency exit signs or instructions of a security guard or authority competent to move people to a safe place.

Article 6. Regulations on disclosure of apartment building-related information

1. The management board or operator of an apartment building must disclose information concerning the management and use of the apartment building on news or bulletin board or by other communication means of that apartment building.

2. Fire safety rules and elevator safety rules must also be posted at designated places for convenient and safe use.

Article 7. Rights and obligations of owners and occupants of apartment buildings

1. Request the management board and the operator of each apartment building to provide information and contents concerning the management and use of that apartment building.

2. Apartment owners must pay fire and explosion insurance premiums as prescribed by law.

3. Strictly comply with these internal rules and Regulation on management and use of apartment buildings promulgated by the Ministry of Construction.

4. Fully and punctually pay fees for management and operation of the apartment building and other fees as prescribed by law and agreed upon with service providers.

Article 8. Handling of violations

1. Any member of the management board, operator, owner, occupant, temporary resident or guest of an apartment building that violates these internal rules and Regulation on management and use of apartment buildings promulgated by the Ministry of Construction shall, depending on the seriousness of the violation, be dealt with according to law and shall provide compensation for damage caused by such violation.

2. Every member of the management board, operator, owner, occupant, temporary resident and guest of the apartment building must strictly comply with decisions on imposition of penalties for violations issued by the competent authorities.

APPENDIX 02:

MODEL SERVICE CONTRACT FOR APARTMENT BUILDING MANAGEMENT AND OPERATION 
(Enclosed with the Circular No. 02/2016/TT-BXD dated February 15, 2016 of the Minister of Construction)

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

APARTMENT BUILDING MANAGEMENT AND OPERATION SERVICE CONTRACT

Pursuant to the Civil Code No. 33/2005/QH11;

Pursuant to the Law on Housing No. 65/2014/QH13;

Pursuant to the Law on Construction No. 60/2014/QH13;

Pursuant to the Government’s Decree No. 99/2015/ND-CP dated October 20, 2015 providing instructions on the implementation of a number of Articles of the Law on Housing;

Pursuant to the Circular No. 02/2016/TT-BXD dated February 15, 2016 of the Minister of Construction promulgating Regulation on management and use of apartment buildings;

For the purpose of meeting demands of the two parties.

The two parties have agreed to sign the contract as follows:

Party A: Apartment building management board or representative managing the apartment building (hereinafter referred to as “Party A”)

Party B: Apartment building operator (hereinafter referred to as “Party B”)

Today, on……, the two parties have agreed to sign this service contract with the following terms and conditions:

Article 1. Definitions

For the purposes of this contract, the terms below shall be construed as follows:

1. “management board, representative managing the apartment building” means the management board of the apartment building or representative managing the apartment building…………. ⁽56⁾, address….. , abbreviated as Party A.

2. “apartment building operator” means .... ⁽57⁾, abbreviated as Party B.

3. “Days and months” means calendar days and calendar months unless otherwise agreed upon by the two parties.

4. “force majeure” means to the events specified in Article 14 of this contract.

5. “work” means any service performed by Party B as prescribed in Article 3 of this contract.

6. “customers/residents” means owners of apartments, owners of other areas in the apartment building and legal occupants of the apartment building.

7. “property” means all equipment and infrastructure associated with the apartment building.

8. “surplus” means the accumulated difference between the building's revenues minus (-) the expenses incurred during the operation of the building (excluding the expenses taken from the maintenance fund).

Article 2. Characteristics of apartment building

Party B undertakes to perform services for management and operation of the apartment building with following characteristics:

1. Name of the apartment building/apartment building complex⁽58⁾:

2. Type of the apartment building ⁽59⁾:

3. Location of the apartment building:

4. Scale of the apartment building (number of floors and apartments):

5. Amenities of apartment building owners and occupants:

Article 3. Apartment building management and operation work

1. Party A agrees to hire Party B to carry out the following apartment building management and operation work at the address….as follows ⁽60⁾:

a) Formulate and implement a plan for apartment building management and operation;

b) Set up a machinery for management and operation and provide personnel; control the management and operation process according to the plan through the control unit of the management office on a periodic and regular basis;

c) Establish and adjust the management and operation procedures and forms suitable for characteristics of the apartment building and apply them to management of the apartment building;

d) Control and ensure public security and order, deal with environmental issues, carry out maintenance of technical systems (electricity, water, pumps, generators, elevators, escalators, communications, etc.) and other services of the apartment building;

dd) Proactively make contact and cooperate with service providers and assist residents in registering services concerning domestic water, TV, Internet, telephone, etc.;

e) On behalf of Party A, manage, update and publish prices of apartment building management and operation services (hereinafter referred to as “the services”) and collect fees for management and operation of the apartment building, service fees and domestic water use fees paid by owners on a monthly basis, propose appropriate measures for collection of such fees to Party A;

g) Monitor maintenance of electromechanical equipment on a monthly, quarterly and yearly basis according to the approved plan and submit periodic reports to Part A;

h) Manage and operate technical system of the apartment building; arrange technical staff’s work schedule at the apartment building; monitor daily work by technical staff including items subject to inspection as well as other repair work;

i) Carry out minor repair for equipment of the apartment building: replacement of lights and switches in the shared areas. Party B shall only cover labor and material costs of minor repairs (corridor lights, switches, fixtures, etc.); Party A shall cover costs of replacement of materials and equipment within the maintenance fund unless otherwise agreed by the two parties;

k) On behalf of Party A, work with relevant agencies and cooperate with local authorities in implementing regulations of laws on public order, environmental hygiene and other movements;

l) Supervise residents complying with internal rules for management and use of apartment buildings. Request and assist residents to register temporary and permanent residence in the apartment building; receive opinions and settle complaints from occupants concerning management and use of the apartment building;

m) Organize periodic fire drills for management board’s members, technical division, security force, sanitation division (possibly including residents); cooperate with Party A in establishing regular fire safety plans as prescribed to instruct customers/residents to take necessary actions in case of emergency;

n) Select and sign service contracts with qualified and reputable contractors to supply such services as security, bike and automobile keeping, daily sanitation, ornamental plant care and insect control; advise Party A on selecting and contracting qualified and reputable contractors to provide other maintenance and repair services (if any), etc.;

o) Submit monthly and annual reports on the management and expenses at the apartment building meeting;

p) Perform other work agreed upon by the parties:

2. Party B shall undertake to manage and operate and provide services to the apartment building (apartment building complex) as required by Party A in a manner that ensures good quality, safety, environmental safety, fire safety according to applicable regulations.  The following criteria should be fulfilled: providing owners and occupants (if any) with services that satisfy required standards and ensure quality, applying all procedures and forms to handle work and safely operate the apartment building (engineering, fire prevention and fighting, etc.), ensuring security and maintaining good hygiene.

3. Party B shall carry out management and operation by way of providing personnel in charge of management, engineering, control and operation of the apartment building and only perform the work as authorized by Party A.

4. In the event that Party B is sufficiently competent to carry out maintenance of shared parts of the apartment building, Party A shall consider deciding to sign a contract with Party B for maintenance of the shared parts of the apartment building.

Article 4. Prices of apartment building management and operation services, time and method of payment of management and operation fees

1. Prices of apartment building management and operation services:

Party B is entitled to collect other revenue from operation of extra services in the apartment building (elevator advertising, taxi parking spaces for hire, other revenue, etc.): as agreed upon by the two parties.

2. Content of service prices includes ⁽62⁾:

a) Charges for electricity used for operation of shared machinery, equipment and systems of the apartment building; charges for water used in public areas and for plant watering; charges for oil used for operation of standby generators in public areas; corridor lights, escape stair lights; electricity for elevators, domestic water pumps and wastewater pumps, etc.;

b) Charges for security services (including combat gears: walkie-talkies, flashlights, etc.,);

c) Charges for public hygiene services (including tools, chemicals, etc.,); tree care, fertilizing and watering services; periodic pest control; monthly domestic waste collection and treatment;

d) Charges for newspapers and books at the lobby; charges for telephone, Internet and stationery serving the management board’s activities; charges for making contact with local authorities upon request; charges for decoration on the occasion of public holidays;

d) Charges for drain, ditch and septic tank cleaning chemicals; charges for organizing annual internal fire drills;

e) Charges for periodic check of domestic water samples; cleaning of underground water tanks and domestic water tanks (if any);

g) Charges for office equipment and furniture (desks, computers, printers, etc.) and technical instruments for the management board’s office; charges for uniforms of the management board’s employees, wages, remunerations, allowances, social insurance and welfare benefits for employees performing the management and operation of this apartment building;

h) Other charges: agreed upon by the parties.

3. Principles of determining prices of apartment building management and operation services:

a) Service prices prescribed in Clause 1 of this Article shall remain unchanged for 12 months from the effective date of this contract;

b) Where a change of the salary policy promulgated by the State of Vietnam or adjustment to the energy prices (electricity, water, oil) affects labor and energy costs, the two parties shall agree to re-determine the service prices corresponding to reality.

4. Time and method of payment of management and operation fees shall be prescribed as follows:

a) For apartments:

Party B shall collect fees for management and operation of the apartment building (by multiplying (x) the service prices prescribed in Clause 1 of this Article by usable area of each apartment). The collection period begins from...to... on a monthly basis by making payment in Vietnamese dong or via bank transfer (agreed upon by the parties).

b) For the office, service and commercial section or other extra revenue:

Party B shall collect fees for management and operation of the apartment building (by multiplying the service prices prescribed in Clause 1 of this Article by usable area of the office, service and commercial section). The collection period begins from...to... on a monthly basis by making payment in Vietnamese dong or via bank transfer (agreed upon by the parties).

Article 5. Rights and obligations of Party A 63

1. Party A has the right to:

a) Request Party B to promptly and sufficiently notify information on performance of the work as agreed upon in the contract or authorized;

b) Receive revenue from operation of the services in the apartment building by Party B to be included in Party A’s funds serving activities in the common interests of residents in this apartment building;

c) Terminate the contract as prescribed in Article 11 of this contract;

d) Enforce financial penalties as prescribed in Article 12 of this contract;

dd) Other rights agreed upon by the parties...

2. Party A has the obligation to:

a) Pay fees for repair, maintenance and replacement for damaged equipment, including labor and material costs and other costs within the jurisdiction of Party A (except for the work within the jurisdiction of Party B prescribed in Clause 2 Article 3 of this contract). If the damage to equipment is caused by Party B, Party B shall be liable for all the repair costs;

b) Make payment to Party B for the work at the prices as agreed upon in Article 4 of this contract;

c) Provide the apartment building dossier and necessary information and documents as prescribed by law in order for Party B to perform the work;

d) Provide Party B with working offices (area, location, etc.,) and parking lots for the management board’s personnel, security guards and sanitation workers;

dd) Enable and closely cooperate with Party B to execute the contract;

e) Remind owners and occupants of obligations concerning management and operation of the apartment building under this contract and regulations of law;

g) Other obligations as agreed upon by the parties…

Article 6. Rights and obligations of Party B

1. Party B has the right to:

a) Request Party A to provide the apartment building dossier and necessary information and documents as prescribed by law to serve the management and operation of the apartment building;

b) Collect fees for management and operation of the apartment building as prescribed in Article 4 of this contract;

c) Collect fees from residents so as to pay remunerations to members of the management board or representatives of owners (at the prices decided by the apartment building meeting), collect fees for use of water and electricity (if any); deal with cases of failure to pay or delay in paying fees as agreed upon in this contract and under the Regulation on management and use of apartment buildings promulgated by the Ministry of Construction;

d) Receive other revenue in the apartment building, e.g. revenue from operation of extra services (elevator advertising, taxi parking spaces for hire, other revenue, etc.);

dd) Suspend the services:…………  or request electricity, water and energy providers of the apartment building to suspend such services if any owner or occupant has failed to pay management and operation fees and other fees to Party B after the second notice;

e) Show its logo/brand on Party B’s documents during performance of the work and customer care and display Party B’s signboard at the apartment building after being approved by Party A of the location, size and form;

g) Other rights agreed upon by the parties...

2. Party B has the obligation to:

a) Sufficiently perform the work and ensure quality as prescribed in Article 3 of this contract including authorized work (if any) and submit reports to Party A;

b) Inspect and monitor activities of Party B’s staff in the performance of the work and take responsibility for paying compensation for damage caused by Party B to Party A or to a third party;

c) Inspect and monitor management and operation concerning activities of the apartment building including elevators, fire equipment, standby generators, water pumps, environmental hygiene, etc.;

d) Undertake to ensure that management and operation of technical system of the apartment building comply with the manufacturer’s recommendations and instructions or designs;

dd) By the15th day of month, submit reports on operation of the apartment building to Party A in the preceding month;

e) Pay compensation for any damage caused by Party B’s breach of the contract and take responsibility to Party A and to the law for the activities carried out by its personnel;

g) Effectively manage, store and use documents, equipment and property provided by Party A for their intended purposes; return to Party A in good condition (except for natural wear) after all obligations under the contract are fulfilled;

h) Be entitled to operate services in the apartment building to increase revenue and share such revenue with Party A as prescribed in Article 15 of this contract to set up a community fund in the common interests of the residents;

i) Fulfill its business obligations according to law such as business registration, practice registration and tax liabilities;

k) Transfer the apartment building dossier to the apartment building management board as prescribed in Article 5 hereof upon termination of this contract;

l) Other obligations agreed upon by the parties...

Article 7. Arrangement of apartment building management personnel

1. Party B is entitled to arrange or second any personnel working for Party B in the apartment building where necessary without causing obstruction to the apartment building management. If the head of the management board is changed, Party A must be notified in writing of such change.

2. If a Party B’s employee (including head of the management board) fails to complete the duties under this contract, Party B shall carry out an inspection. If the duties have not been completed, he/she will be replaced and Party A must be notified of such replacement.

3. Work time of divisions affiliated to the management board: ⁽⁶⁴⁾

a) Office of the management board: (morning: from ... to ...; afternoon: from ... to ...);

b) Front desk: on shift (including the following shifts:…);

c) Technical division: on duty around the clock (7 days a week, including public holidays)

Article 8. Costs payable by Party A

1. Before December 31 of the preceding year, Party B shall send Party A a plan for costs of management and operation of the apartment building including revenue from provision of management and operation services at the apartment section and office, services and commercial section and other accompanying services (if any); costs of management and operation of the apartment building and costs payable by Party B and Party A.

2. Party A shall pay providers of services such as maintenance or repair of equipment and similar costs payable by Party A.

Article 9. Cooperation between Party A and Party B

1. Party A has the responsibility to:

a) Act as a representative of lawful owners and occupants of the apartment building to sign the contract with Party B for performance of the work prescribed in Article 3 of this contract;

b) Manage the fund for maintenance of the shared parts of the apartment building according to law; manage the common interest fund (if any) to make payment for maintenance purposes or other public purposes;

c) Act as a representative of residents to work with competent authorities upon request or as prescribed by law;

d) Consider approving the management and operation plan and issues concerning responsibility and authority of Party A; sign a contract for repair, maintenance and replacement of ornamental plants, etc. (if any) outside Party B's scope of work;

dd) Pay the costs incurred in connection with operation of the apartment building such as procurement of supplies and equipment; maintenance, renovation and decoration of the apartment building outside Party B’s scope of payment;

e) Appoint its representatives to closely cooperate with Party B in management and operation of the apartment building in accordance with the management process so as to meet service quality requirements;

2. Party B has the responsibility to:

a) Organize management of all activities within scope of management and operation of the apartment building under this contract;

b) Provide personnel for technical operation, management and care of customers, and control of activities of the apartment building;

c) Manage and monitor customer services, environmental hygiene services, security services, fire safety, bike and auto keeping, insect control and ornamental plant care for the apartment building, etc. Party B shall manage and control professional competence and bill of quantity of service providers according to the established standards and management processes, and submit periodic reports to Party A;

Article 10. Term of contract ⁽65⁾

1. The term of this contract is ... months since ...

2. At least 30 days prior to the expiration date of the contract, Party B shall submit a written request for extension of the contract to Party A; if, 15 days after the receipt of the written request, Party A does not give a written response, the contract will be automatically extended for a period equal to that of the contract prescribed in Clause 1 of this Article.

Article 11. Termination and unilateral termination of the contract ahead of schedule

1. This contract shall be terminated in any of the following cases:

a) The contract expires and the parties do not wish to extend it;

b) Both parties agree to terminate the contract ahead of schedule;

c) Either party goes bankrupt or is dissolved or shut down as prescribed by law;

d) A force majeure event occurs but it cannot be overcome for a period of... straight months.

2. Party A may unilaterally terminate the contract when Party B commits one of the following breaches ⁽66⁾:

a) Breach of any of the obligations mentioned in Clause 2 Article 6 of this contract, thereby causing damage to Party A;

b) Increasing service prices against the regulations set out in Article 4 of this contract or change terms and conditions of this contract without consent of Party A;

c) Transferring this contract or assign the task of management and operation of the apartment building to another contractor without written consent of Party A;

d) Failure to fulfill obligations under this contract within ... days from the receipt of the written notice from Party A;

d) Going bankrupt or being dissolved or shut down;

e) Other cases agreed upon by the parties...

Party A is not allowed to unilaterally terminate the contract, except for the cases prescribed in this Clause, otherwise Party A will provide compensation as prescribed in Clause 2 Article 12 of this contract.

3. Party B may unilaterally terminate the contract when Party A commits one of the following breaches:

a) Failure to fully pay due amounts to Party B under this contract within ….days since receipt of written notice of overdue amounts from Party B;

b) Failure to provide the apartment building dossier and necessary information and documents as prescribed to Party B for performance of the work;

c) Other cases agreed upon by the parties...

Party B is not allowed to unilaterally terminate the contract, except for the cases prescribed in this Clause, otherwise Party B will provide compensation as prescribed in Clause 2 Article 12 of this contract.

4. Transfer upon contract termination:

a) Within…days from the date of notifying contract termination, the two parties shall consult together for determination of final value of the contract. Within ... days from the date on which Party B fulfills obligations concerning making reports, transferring figures and property and the minutes of contract liquidation is signed by the two parties, Party A must pay the remaining amounts to Party B according to the finalization minutes (if any);

b) Within ... days from the date of contract termination, Party B shall transfer the property in its original condition to Party A, accounting books and debt data (both in soft and hard copies), the apartment building dossier, information about customers/residents, etc. and other materials and property (if any) under Party A’s ownership;

c) Other agreements...

Article 12. Breach of contract and compensation

1. Party B shall compensate Party A for all costs of actual remedial work and costs incurred in connection with damage leading to loss of property in one of following cases ⁽67⁾::

a) Such damage is caused by Party B;

b) Party B shows a lack of responsibility or commits an act in breach of the contract.

2. Either party breaches the regulations set out in Clause 2 or Clause 3 Article 11 of this contract, the breaching party shall pay a compensation which is ……. times the service price of the most recent month to the other party (according to figures provided by Party B).

Article 13. Post-termination responsibilities

1. Party A is not allowed to use forms and management processes established by Party B unless otherwise agreed upon in writing by Party B.

2. Party B is not allowed to use information concerning customers/residents to serve its business purposes.

3. Party B shall transfer the property in its original condition to Party A within ... days from the date of contract termination in order for Party to keep continually managing and operating the apartment building without affecting daily life of residents. If this provision is breached, Party B shall pay a compensation of ………….. for the damage caused to Party A.

4. Other agreements...

Article 14. Force majeure event

1. The following events shall be considered as force majeure events:

a) War or act of God or change of a policy or law of the State of Vietnam;

b) Implementation of a decision issued by a competent authority or other cases prescribed by law;

c) An accident or illness that requires emergency treatment at a health facility;

d) Other cases: agreed upon by the parties.

2. Notification of a force majeure event:

a) When any of the force majeure events in Clause 1 of this Article occurs, the party affected by the event (“affected Party”) must notify the other party (in writing or directly) within ... days from the occurrence of such event (if there is documentary evidence for the force majeure event, it must be provided);

b) The affected Party’s failure to fulfill its obligations shall not constitute a breach of the contract and shall not entitle the other party to terminate this contract;

c) If no longer being affected by such an event of force majeure, the affected party should give a written notice to the other Party;

d) The parties shall continue to fulfill their obligations when the event no longer exists;

dd) If a force majeure event has occurred for ... straight months and cannot be overcome, the contract shall automatically expire unless otherwise agreed upon by the parties.

3. Responsibility of each Party in case of a force majeure event:

Performance of obligations under the contract by the parties shall be suspended during the occurrence of a force majeure event. Each Party shall continue to perform its own obligations after the event ends except for the cases prescribed in Point dd Clause 2 of this Article.

Article 15. Operation and provision of secondary services and surplus

1. Party A has the following rights and responsibilities:

a) During the term of this contract, Party A shall authorize Party B to seek and operate services under shared ownership of the apartment building such as advertising, signboards, premises for rent and other services. The operation of services must not affect the apartment building management and operation by Party, aesthetics, environment and public order at the apartment building.

b) Receive ...% of the amount of money in addition to existing revenue from operation of services in order for Party A to make additions to the fund to serve activities in the common interests of the apartment building.

2. Party B has the following rights and responsibilities:

a) As authorized by Party A, Party B shall seek partners and manage the operation and installation of advertisements, signboards and other services in order to increase revenue of the apartment building. Party B shall receive ...% of the additional amount of money versus revenue from operation and management of such services;

b) Participate in bidding for operation of services of the apartment building (if any) as appointed or invited by Party A.

3. Surplus:

By adopting the method of exercising financial autonomy, the two parties shall agree that the surplus (if any) during the effective period of this contract belongs to Party B. Party B shall agree to set aside ...% of such surplus so as for Party A to include it in the common interest fund.

Article 16. Other agreements

Based on each apartment building, the parties shall enter into other agreements which shall not be contrary to the terms and conditions of this contract and the Regulation on management and use of apartment buildings, Law on Housing and social ethics.

Article 17. Contract appendices

The following documents shall constitute an integral part of this contract:

1. Apartment building management and operation plan;

2. Apartment building dossier;

3. Other Appendices (if any) signed between the two parties.

Article 18. Disputes and dispute settlement

1. Any dispute arising out of this contract shall be settled by the parties.

2. Where a dispute over fees for management and operation of the apartment building cannot be settled, within ...  days from the date on which the dispute arises, both parties are entitled to submit a written request to the People’s Committees of the province where the apartment building is situated for consideration and settlement or bring the case to the People’s Court if the decision given by the provincial People’s Committee is not agreed.

3. Where a dispute over the execution of the service contract arises, the parties are entitled to request a People's Court to settle it as prescribed by law. Any decision issued by the People's Court shall be final and binding on both parties.

Article 19. Effect of contract

1. This contract comes into force from ...

2. This contract shall be liquidated via minutes of liquidation signed by both parties.

3. Both parties shall undertake to perform all the terms and conditions of this contract. Property held in trust shall not be involved in any ownership or occupancy dispute.

4. This contract is made into ... copies, all texts being equally authentic. Each party holds ... copy(ies).

5. In case both parties agree to modify terms and conditions of the contract, an appendix thereto or a supplementary contract should be made./.

1 The Circular No. 22/2016/TT-BXD dated July 01, 2016 of the Minister of Construction on full or partial annulment of legislative documents on business and investment conditions promulgated by the Ministry of Construction (hereinafter referred to as “the Circular No. 22/2016/TT-BXD”) is promulgated pursuant to:

 “The Law on Promulgation of Legislative Documents dated June 22, 2015;

The Law on Investment dated November 26, 2014;

The government’s Decree No. 34/2016/ND-CP dated May 14, 2016 on elaboration of some Articles of the Law on Promulgation of Legislative Documents;

The Government’s Decree No. 118/2015/ND-CP dated December 22, 2015;

The Government’s Decree No. 62/2013/ND-CP dated June 25, 2013 regulating functions, tasks, powers and organizational structure of the Ministry of Construction;

At the request of the Director General of the Department of Legal Affairs;

The Minister of Construction hereby promulgates a Circular on full or partial annulment of legislative documents on business and investment conditions promulgated by the Ministry of Construction or jointly promulgated by Ministries.”

The Circular No. 28/2016/TT-BXD dated February 15, 2016 of the Minister of Construction on amendments to the Circular No. 10/2015/TT-BXD dated December 30, 2015 by Ministry of Construction providing regulations on professional training courses in management of apartment buildings, the Circular No. 11/2015/TT-BXD dated December 30, 2015 by Ministry of Construction providing regulations on issuance of real estate broker license, guidelines for training and improving knowledge of real estate brokerage practice and management of the real estate trading floor, and establishment and organization of activities of the real estate trading floor, and a number of provisions of the Regulation on management and use of apartment buildings promulgated together with the Circular No. 02/2016/TT-BXD (hereinafter referred to as “the Circular No. 28/2016/TT-BXD”) is promulgated pursuant to:

 “The Law on Housing dated November 25, 2014;

The Law on Real Estate Trading dated November 25, 2014;

The Government’s Decree No. 62/2013/ND-CP dated June 25, 2013 regulating functions, tasks, powers and organizational structure of the Ministry of Construction;

Pursuant to the Government’s Decree No. 79/2016/ND-CP dated July 01, 2016 providing for conditions for training business in specialist knowledge, professional competence in management and operation of apartment buildings, knowledge of real estate brokerage practicing, and real estate transaction management; 

At the request of the Director General of Management Agency for Housing and Real-estate Market.

The Minister of Construction promulgates a Circular on amendments to the Circular No. 10/2015/TT-BXD dated December 30, 2015 by Ministry of Construction providing regulations on professional training courses in management of apartment buildings, the Circular No. 11/2015/TT-BXD dated December 30, 2015 by Ministry of Construction providing regulations on issuance of real estate broker license, guidelines for training and improving knowledge of real estate brokerage practice and management of the real estate trading floor, and establishment and organization of activities of the real estate trading floor, and Regulation on management and use of apartment buildings promulgated under the Circular No. 02/2016/TT-BXD dated February 15, 2016 of the Ministry of Construction.”

The Circular No. 06/2019/TT-BXD dated October 31, 2019 of the Minister of Construction on amendments to some Articles of Circulars relating to management and use of apartment buildings (hereinafter referred to as “the Circular No. 06/2019/TT-BXD”) is promulgated pursuant to:

 “The Law on Housing dated November 25, 2014;

The Government’s Decree No. 81/2017/ND-CP dated July 17, 2017 defining the functions, tasks, powers and organizational structure of the Ministry of Construction;

The Government’s Decree No. 99/2015/ND-CP dated October 20, 2015 providing instructions on the implementation of a number of Articles of the Law on Housing;

At the request of the Director of the Housing and Real Estate Management Agency;

The Minister of Construction hereby promulgates a Circular on amendments to some Articles of Circulars relating to management and use of apartment buildings.”

The Circular No. 07/2021/TT-BXD dated June 30, 2021 of the Minister of Construction amending some Articles of Circular No. 19/2016/TT-BXD dated June 30, 2016 and Circular No. 02/2016/TT-BXD dated February 15, 2016 of the Minister of Construction (hereinafter referred to as “the Circular No. 07/2021/TT-BXD”) is promulgated pursuant to:

The Law on Housing dated November 25, 2014;

The Government’s Decree No. 99/2015/ND-CP dated October 20, 2015 providing instructions on the implementation of a number of Articles of the Law on Housing and Decree No. 30/2021/ND-CP dated March 26, 2021 on amendments to the Government’s Decree No. 99/2015/ND-CP providing instructions on the implementation of a number of Articles of the Law on Housing;

The Government’s Decree No. 81/2017/ND-CP dated July 17, 2017 defining the functions, tasks, powers and organizational structure of the Ministry of Construction;

At the request of the Director of the Housing and Real Estate Management Agency.”

2 Effect of the Circular No. 22/2016/TT-BXD:

 “Article 3. Effect

1. This Circular comes into force from the day on which it is signed.

2. Relevant organizations and individuals are responsible for implementation of this Circular./.”

Effect of the Circular No. 28/2016/TT-BXD:

 “Article 4. Effect

1. This Circular comes into force from February 01, 2017.

2. The template for certificate of completion of professional training course in management of apartment buildings is specified in the Appendix 01 enclosed with this Circular and replaces the template for certificate of completion of professional training course in management of apartment buildings stated in the Appendix 05 enclosed with the Circular No. 10/2015/TT-BXD dated December 30, 2015 by Minister of Construction.

3. Sample internal rules for management and use of apartment buildings specified in the Appendix No. 02 to this Circular shall replace the sample internal rules for management and use of apartment buildings specified in the Appendix No. 01 to the Circular No. 02/2015/TT-BXD dated February 15, 2015 of the Minister of Construction.

4. The following regulations are annulled:

a) The Appendix No. 05 of the Circular No. 10/2015/TT-BXD dated December 30, 2015 of Ministry of Construction providing regulations on professional training courses in management of apartment buildings;

b) Clause 4 Article 3, Headings of Sections 1 and 2 Chapter III Article 27 and Appendix No. 7 of the Circular No. 11/2015/TT-BXD dated December 30, 2015 by Minister of Construction providing regulations on issuance of real estate broker license, guidelines for training and improving knowledge of real estate brokerage practice and management of the real estate trading floor, and establishment and organization of activities of the real estate trading floor;

c) Clauses 7 and 8 Article 36; Clauses 2 and 3 Article 46 of the Circular No. 02/2016/TT-BXD dated April 02, 2016 of the Minister of Construction on promulgation of Regulation on management and use of apartment buildings.

5. If regulations on management and use of apartment buildings promulgated by Ministries, regulatory bodies and People’s Committees of provinces or central-affiliated cities before the entry into force of this Circular contravene regulations hereof, this Circular shall prevail.

6. Difficulties that arise during the implementation of this Circular should be promptly reported to the Ministry of Construction for instructions or amendments./.”

Effect of the Circular No. 06/2019/TT-BXD:

 “Article 3. Effect

1. This Circular comes into force from January 01, 2020.

2. Difficulties that arise during the implementation of this Circular should be promptly reported to the Ministry of Construction for instructions or amendments./.”

Effect of the Circular No. 07/2021/TT-BXD:

 “Article 3. Effect

1. This Circular comes into force from August 15, 2021.

2. Projects whose investment in construction is completed or on-going projects on investment in construction of social housing and housing for relocation following the BT method may apply methods and formulas for calculation of leasing and lease purchase prices of social housing and housing for relocation according to regulations of Circular No. 19/2016/TT-BXD.

3. Difficulties that arise during the implementation of this Circular should be promptly reported to the Ministry of Construction for instructions or amendments./.”

3 This Clause is amended by Clause 1 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

4 This Clause is amended by Clause 1 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since January 01, 2017 and Clause 1 Article 2 of the Circular No. 06/2019/TT-BXD, which been effective since January 01, 2020.

5 This Clause is amended by Clause 1 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

6 This Clause is amended by Clause 2 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

7 This Clause is added by Clause 3 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

8 This Article is amended by Clause 4 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

9 This Point is annulled by Article 2 of the Circular No. 07/2021/TT-BXD, which has been effective since August 15, 2021.

10 This Clause is amended by Clause 2 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

11 This Article is amended by Clause 5 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

12 The phrase “Ủy ban nhân dân cấp phường” (“ward-level People’s Committee”) is replaced with “Ủy ban nhân dân cấp xã” (communal People’s Committee”) as prescribed in Clause 25 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

13 This Point is amended by Clause 2 Article 2 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

14 The phrase “Ủy ban nhân dân cấp phường” (“ward-level People’s Committee”) is replaced with “Ủy ban nhân dân cấp xã” (communal People’s Committee”) as prescribed in Clause 25 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

15 The phrase “Ủy ban nhân dân cấp phường” (“ward-level People’s Committee”) is replaced with “Ủy ban nhân dân cấp xã” (communal People’s Committee”) as prescribed in Clause 25 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

16 The phrase “Ủy ban nhân dân cấp phường” (“ward-level People’s Committee”) is replaced with “Ủy ban nhân dân cấp xã” (communal People’s Committee”) as prescribed in Clause 25 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

17 This Article is amended by Clause 6 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

18 This Clause is amended by Clause 7 Article 1 of the Circular No.06/2019/TT-BXD, which has been effective since January 01, 2020.

19 This Clause is amended by Clause 8 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

20 This Article is amended by Clause 5 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

21 This Clause is amended by Clause 6 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017 and added by Clause 3 Article 2 of the Circular No. 06/2019/TT-BXD, which been effective since January 01, 2020.

22 This Clause is amended by Clause 9 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

23 This Clause is amended by Clause 7 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017 and added by Clause 4 Article 2 of the Circular No. 06/2019/TT-BXD, which been effective since January 01, 2020.

24 The phrase “Ủy ban nhân dân cấp quận” (“urban district-level People’s Committee”) is replaced with “Ủy ban nhân dân cấp huyện” (“district-level People’s Committee”) as prescribed in Clause 25 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

25 The phrase “Ủy ban nhân dân cấp phường” (“ward-level People’s Committee”) is replaced with “Ủy ban nhân dân cấp xã” (communal People’s Committee”) as prescribed in Clause 25 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

26 This Clause is amended by Clause 10 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

27 This Point is added by Clause 11 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

28 This Clause is amended by Clause 12 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

29 This Clause is added by Clause 13 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

30 This Point is added by Clause 14 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

31 This Clause is amended by Clause 15 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

32 This Clause is amended by Clause 16 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

33 This Article is amended by Clause 8 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017 and Clause 5 Article 2 of the Circular No. 06/2019/TT-BXD, which been effective since January 01, 2020.

34 This Article is annulled in part by Clause 10 Article 2 of the Circular No. 22/2016/TT-BXD,, which has been effective since July 01, 2016 and amended by Clause 9 Article 3 of the Circular No. 28/2016/TT-BXD, which been effective since February 01, 2017 amended by Clause 6 Article 2 of the Circular No. 06/2019/TT-BXD, which comes into force from January 01, 2020.

35 This Clause is amended by Clause 10 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since January 01, 2017.

36 This Point is amended by Clause 11 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

37 This Point is amended by Clause 17 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

38 This Point is amended by Clause 12 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

39 This Point is amended by Clause 18 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

40 This Clause is annulled by Point c Clause 4 Article 4 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

41 This Clause is annulled by Point c Clause 4 Article 4 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

42 This Clause is amended by Clause 19 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

43 This Clause is amended by Clause 13 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since January 01, 2017.

44 This Clause is amended by Clause 14 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

45 This Point is amended by Clause 20 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

46 This Clause is amended by Clause 15 Article 3 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

47 This Clause is added by Clause 21 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

48 This Clause is annulled by Point c Clause 4 Article 4 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

49 This Clause is annulled by Point c Clause 4 Article 4 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

50 The phrase “Ủy ban nhân dân cấp quận” (“urban district-level People’s Committee”) is replaced with “Ủy ban nhân dân cấp huyện” (“district-level People’s Committee”) as prescribed in Clause 25 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

51 This Clause is amended by Clause 22 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

52 The phrase “Ủy ban nhân dân cấp phường” (“ward-level People’s Committee”) is replaced with “Ủy ban nhân dân cấp xã” (communal People’s Committee”) as prescribed in Clause 25 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

53 This Clause is added by Clause 23 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

54 This Clause is added by Clause 24 Article 1 of the Circular No. 06/2019/TT-BXD, which has been effective since January 01, 2020.

55 These sample internal rules are replaced with the internal rules for management and use of apartment buildings prescribed in Clause 3 Article 4 of the Circular No. 28/2016/TT-BXD, which has been effective since February 01, 2017.

56 Name of the apartment building.

57 Name of the operator specified in the business registration document or establishment decision issued by the competent authority.

58 Name of the apartment building/apartment building complex.

59 Specify that the apartment building is intended for residence only or for both residence and business.

60 Subject to the agreement between Party A and Party B, both parties may add, cut or change the work performed by Party B as prescribed in Clause 1 of this Article 3.

61 The area m² used for determination of prices is the usable area (according to carpet area).

62 The costs included in the service prices prescribed in Clause 2 of this Article 4 may be modified, adjusted or supplemented under the agreement by both parties.

63 Apart from the rights and obligations set forth in Articles 5 and 6, both parties may agree to make other additions to meet work requirements.

64 Both parties shall conduct specific negotiations on the information specified in Clause 3 of this Article 7.

65 Both parties shall conduct specific negotiations on the information specified in Article 10.

66 Both parties may conduct negotiations on add cases where unilateral termination of contract is allowed as specified in Clause 2 and Clause 3 of this Article 11.

67 Both parties may conduct further negotiations on the information specified in Clause 1 of Article 12.