Circular No. 02/2016/TT-BXD dated February 15, 2016 of the Ministry of Construction on regulation on management and use of condominiums

THE MINISTRY OF CONSTRUCTION

CircularNo. 02/2016/TT-BXD datedFebruary 15, 2016 of the Ministry of Construction onregulation on management and use of condominiums

Pursuant to the Law on Housing No. 65/2014/QH13 dated November 25, 2014;

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 Decree No. 99/2015/ND-CP dated October 20, 2015 of the Government on detailing and guiding the implementation of a number of articles of the Housing Law

At the request of general director of Management Agency for Housing and Real-Estate Market

The Minister of Construction promulgates the Circular on the Regulation on management and use of condominiums.

Article 1.Enclosed herewith is the Regulation on management and use of condominiums.

Article 2.This Circular takes effect on April 02, 2016. Documents below shall be expired on the effective date of this Circular.

a) The Minister of Construction’s Decision No. 08/2008/QD-BXD dated May 28, on promulgating the Regulation on use management of condominiums;

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

If regulations on management and use of condominiums promulgated by the Ministry of Construction, ministries, departments and People’s Committees of central-affiliated cities and provinces before the effective date of this Circular and the Regulation on management and use of condominiums enclosed with this Circular are different, the latter shall prevail.

Article 3.Ministers, heads of ministerial-level agencies, Governmental agencies, presidents of People’s committees of central-affiliated cities, provinces and relevant organizations, individuals shall be responsible for executing this Circular./.

For The Minister

Deputy Minister

Pham Hong Ha

THE REGULATION

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

Chapter I

GENERAL PROVISIONS

Article 1. Scopeof regulation

1. This Regulation applies to residential condominiums and mixed-use condominiums used according to the Law on Housing No. 65/2014/QH13 (hereinafter referred to as the Law on Housing), including:

a) Commercial condominiums;

b) Social condominiums except for condominiums as prescribed in Clause 2, this Article;

c) Condominiums for relocation;

d) State-owned condominiums being renovated, re-constructed;

2. Encourage application of this Regulation to state-owned condominiums that have not yet been renovated or re-constructed; Social condominiums as collective residence (a collective of students or workers residing in a single condominium) for students and employees shall not be subject to this Regulation.

Article 2.Subjects of application

1. Investors of condominium construction projects (herein ‘the investor’); condominium owners, occupants; condominium management board (hereinafter ‘management board’); units in charge of management and operation of condominiums (hereinafter ‘managing unit’);

2. State administration agencies in relation to management and use of condominiums;

3. Other organizations, individuals in relation to management and use of condominiums;

Article 3.Definition

In this Regulation, some terms are defined as follows:

1.Condominium refers to housing units as prescribed in Clause 3, Article 3 of the Law on Housing.

2. Condominium blockrefers to a block of condominiums (one or several blocks) which are constructed according to the planning and project documentation approved by competent agencies.

3.Condominium complexincludes at least two condominiums constructed on a parcel of land according to the master plan and project documentation approved by competent agencies with the same manner of ownership (single owner or multi-owners).

4.Residential condominiumrefers to a condominium designed and constructed for residential purpose only.

5.Mixed use condominiumrefers to a condominium designed and constructed for residential, office, service and commercial purposes.

6.Condominium investorrefers to a capital owner or organization, individual tasked with managing and using capital for the implementation of housing projects including condominium projects according to the Law on Housing and relevant law provisions (hereinafter referred to as the investor ).

7.Condominium ownerrefers to owners of condominiums and owners of space other than condominium s within a condominium.

8.Condominium occupantsrefer to owners who are using a condominium themselves or organizations, households and individuals that are legally using condominiums and other space within the condominium through renting, borrowing, temporary occupations with friends or relatives, or being authorized by competent agencies.

9.Representatives of owner of condominiums, other space within a condominiumrefers to representatives of owner of each condominium, other space within a condominium or legal occupants if the owner does not use the condominium (hereinafter referred to as ‘owner representatives ).

10.Single-owner condominiumrefers to a condominium completely owned by one single owner regardless of shared or privately-owned portions.

11.Multi-owner condominiumrefers to a condominium owned by at least two owners.

12.Shared portion of a condominium blockrefers to the area, equipment system, technical infrastructure as prescribed in Clause 2, Article 100 of the Law on Housing that is shared by owners of such condominium block.

13.Shared portion of a condominium arearefers to the area, equipment system as prescribed in Point b, Clause 2, Article 100 of the Law on Housing that is owned and used in common by owners of that condominium area.

14.Shared portion of an office, service and commercial arearefers to the area, equipment system as prescribed in Point b, Clause 2, Article 100 of the Law on Housing that is owned and used in common by owners of such functional area.

15.Shared portion of a condominium  complexrefers to the area, works, equipment system, technical infrastructure system that is owned and used in common by all owners of that condominium complex including a cistern, power generator, septic tank, water pumps, public garden (if any) and other works and equipment constructed and installed according to approved designs.

Article 4. Principles for managing and using condominiums

1. A condominium should be used according to its uses, designs and contents of approved project.

2. Management and use of condominiums should be in compliance with regulations of individual condominiums, the Law on Housing, this Regulation and relevant law provisions.

3. Payment of fees for administration and operation of condominiums shall be carried out according to negotiations between condominium owners, occupants and managing units on the basis of the Law on Housing. Use of budget for operation and maintenance of shared portion of the condominium should serve primary purpose, be transparent and in accordance with the Law on housing and this Regulation; contribution of fees and charges during the use of condominium should be in compliance with law provisions.

4. Condominium owners, occupants should pay fees for maintenance and operation of the condominium, fees for activities performed by the Management Board and other fees during the use of condominiums according to this Regulation and relevant law provisions; comply with regulations on management and use of condominiums, regulations of the Law on Housing, this Regulation and relevant law provisions during the management and use of condominiums.

5. Management Board shall exercise rights and responsibilities in relation to management and use of condominiums according to the Law on Housing and this Regulation on behalf of condominium owners, occupants; In case a condominium does not require the establishment of the Management Board under the Law on Housing, the condominium owners, occupants themselves shall negotiate plans for management of the condominium.

6. Disputes, complaints in relation to management and use of condominiums shall be handled according to the Law on Housing, this Regulation and relevant law provisions.

7. Any act of violating regulations on management and use of condominiums shall be handled in a timely and strict way under laws.

Chapter II

CONTENT OF MANAGEMENT AND USE OF CONDOMINIUMS

Article 5. Establishment, handover and storage of condominium documentation

1. Condominium owners shall establish and store condominium documents according to Article 76 and Article 77 of the Law on Housing.

2. The investor shall be responsible for establishing documents of condominiums; the documents include:

a) Investment and construction project documents approved by competent agencies including the project’s legal documents and as-build documents according to the Law on Construction;

b) Procedures on maintenance of condominiums shall be established and submitted for approval by the investor according to the Law on Construction;

c) Procedures on maintenance of equipment that belong to commonly owned portion of condominium shall be established by equipment supplier;

d) Drawing of motorbike parking lot shall be established by the investor on the basis of approved project documents and designs with owner and occupant parking areas (including motorbike parking area owned in common, auto parking lot) and public parking lot.

3. Storage of condominium documentation as prescribed in Clause 2, this Article is prescribed as follows:

a) The investor shall be responsible for storing the documentation as prescribed in Clause 2, this Article; within 20 working days since the Management Board or representatives of condominium management (in case establishment of the Management Board is not required) issues a written request for handing over condominium documentation, the investor shall be responsible for providing two sets of documentation as prescribed in Clause 2, this Article.

b) The Management Board shall be responsible for storing and managing this documentation; if the condominium requires a managing unit as prescribed in the Law on Housing, the Management Board should provide a set of documentation received from the investor to the managing unit unless the managing unit is the investor;

c) If the investor fails to hand over the documentation after the time limit as prescribed in Point a, this Clause, the Management Board shall issue a written request to People’s Committees of districts, rural districts, district-level towns, provincial cities where the condominium is situated (hereinafter referred to as ‘People’s Committees of districts ).

The investor shall be penalized for administrative violations in the areas of management and use of condominiums if failing to hand over the documentation within ten working days since receipt of request from People’s Committees of districts.

4. Before the documentation is handed over, the investor and the Management Board or condominium management representatives should carry out the counting of equipment, definition of commonly owned portion of the condominium according to the Law on Housing; handing over the condominium site and the documentation should be made in a written record with confirmations by the concerned parties.

Article 6. Management of privately owned portion of multi-owner condominium

1. Privately owned area or equipment as prescribed in Clause 1, Article 100 of the Law on Housing should be specified in condominium purchase and sale contract, condominium lease purchase contract or area other than the condominium (hereinafter referred to as ‘the purchase and lease purchase contract ).

Apart from the purchase and lease purchase contract, the investor should provide the drawings as prescribed in Point d, Clause 2, Article 5, this Regulation to buyers, tenants.

2. If the purchase and lease purchase contract is signed before the effective date of this Regulation, definition of privately owned area and equipment as well as provision of the drawings shall be instructed in the Law on Housing at the time of signing or based on the purchase and lease purchase contract if not prescribed by laws.

3. Condominium owners may directly use or authorize others to manage their privately owned portion but should ensure that the use and management of such portion accord with approved designs and do not affect other privately-owned area of other owners or shared area of the condominium.

Article 7. Management of shared portion of multi-owner condominiums

1. Commonly owned area or equipment system of the condominium is defined according to Clause 2, Article 100 of the Law on Housing and should be specified in the purchase and lease purchase contract. The purchase and lease purchase contract should be accompanied by the lists of shared portion according to the Law on Housing; such portion should be used purposefully and in accordance with approved designs.

2. The investor shall be responsible for managing the works designed for leisure activities of condominium owners, occupants and subject to be handed over to the State for management under the approved project.

3. If these works are constructed for business by the investor itself according to contents of the approved project, the investor shall have the ownership thereto and be responsible for managing and maintaining these works.

4. For shared portion of the residential condominium block, the owners thereto shall be responsible for managing such portion together; if a condominium requires the managing unit, such portion shall be transferred to the managing unit for management; if a condominium does not require the managing unit, the Management Board or other managing units shall be chosen for management.

5. For shared portion of mixed-use condominium block, management shall be instructed as follows:

a) If shared portions of the office, service and commercial areas (hereinafter referred to as ‘the functional area’) and residential condominiums is undefinable, the owners thereto shall be responsible for managing such portions together.

b) If such portion is separately definable, the shared portion of the residential condominium shall be managed by owners of residential condominiums and the shared portion of the functional area shall be managed by the managing unit or by owners of this functional area if the managing unit is not required by the condominium. The management of this shared portion is instructed in Clause 4, this Article.

For commonly owned portions of an entire condominium, all the condominium owners shall be responsible for managing such portions together; the management of such portions is instructed in Clause 4, this Article.

6. For community activity houses of the condominium block, owners or the Management Board (if any) or the managing unit shall be responsible for managing such houses according to decision given in the condominium meeting.

7. For commonly owned portions of a condominium complex, the Management Board shall be responsible for managing such portions on behalf of owners.

8. If the purchase and lease purchase contract is signed before the effective date of this Regulation, definition of commonly owned portion of condominium is instructed in the Law on Housing at the time of signing or based on the purchase and lease purchase contract if not prescribed by laws.

Article 8. Ownership and management of parking lot of condominiums

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

2. For single-owner condominium, the parking lot shall belong to the ownership and management of the condominium owner but be used in accordance with contents of the approved project, the Law on Housing and this Regulation. For a condominium that requires the managing unit, the managing unit shall manage this parking lot; for a condominium without a managing unit, owners themselves or other units shall manage this parking lot.

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

4. For auto parking lot intended for condominium owners as prescribed in Point b, Clause 1, Article 101 of the Law on Housing, execute following provisions:

a) Persons who purchase or lease purchase a condominium or other space within the condominium (hereinafter referred to as the buyers ) decide to purchase or lease auto parking spaces intended for condominium owner according to the Law on Housing.

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

b) If a condominium has insufficient auto parking spaces for each condominium, the investor shall make arrangements on the basis of negotiations among buyers;

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

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

dd) If the buyers do not purchase auto parking spaces as prescribed in this Clause, the parties should specify in the condominium purchase and lease purchase contract that this space belongs to the ownership and management of the investor and the investor shall not include expenses for investment and construction of this space in sale price, rents of the condominium; if the buyers need to purchase or lease auto parking spaces, the investor shall calculate sale price and rents of parking spaces independent of sale price, rents of the condominium.

e) The parking lot prescribed in this Clause shall be managed by the managing unit or by owners themselves or other units (in case the managing unit is not required by such condominium).

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

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

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

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

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

Article 9. Rules and regulations on management and use of condominiums

1. Condominiums within the governing scope of this Regulation should have rules and regulations on management and use of condominiums with contents as prescribed in Clause.

2. Rules and regulations on management and use of condominiums are as follows:

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

b) Prohibited acts in the use of condominiums and handling of violations;

c) Regulations on use of shared portion of condominium;

d) Regulations on repair work for damage, changes of equipment in privately-owned portions and emergency responses;

dd) Regulations on fire and explosion prevention and combat;

e) Regulations on public disclosure of information in relation to the use of condominium;

g) Regulations on obligations of owners, occupants;

h) Other regulations depending on characteristics of each condominium;

3. If the first condominium meeting has not been held, the investor shall be responsible for constructing rules and regulations on management and use of condominiums on the basis of Clauses 1, 2, this Article, attaching the condominium purchase and lease purchase contract and making public disclosure of these rules and regulations in community activity house, stair halls and reception area of the condominium block.

4. When the first condominium meeting is organized, amendments and supplements to the rules and regulations established by the investor shall be considered but not in opposition to the Law on Housing and this Regulation. After the first condominium meeting, the Management Board or representatives from condominium management shall be responsible for making public disclosure of these rules and regulations in community activity house, stair halls and reception area of the condominium block.

Article 10. Administration and operation of condominiums

1. Activities of administration and operation of condominiums are as follows:

a) Control and maintain operation, carry out regular maintenance of lifts, water pumps, power generators, automatic fire alarm system, fire extinguishing system, firefighting instruments, back-up equipment and other equipment that belong to shared portions of condominium blocks, condominium complexes.

b) Provide services of security, environmental hygiene, waste collection, care for flower garden and ornamental plants, destruction of insecticides and other services to ensure normal operation of the condominium;

c) Other relevant works;

2. In case a condominium requires the managing unit as prescribed in Point a, Clause 1, Article 105 of the Law on Housing, all the tasks as prescribed in Clause 1, this Article shall be performed by the managing unit; owners, occupants are not permitted to hire outside service providers. The managing unit may enter a contract with service providers for the performance of administration and operation of condominiums yet shall take the responsibility as agreed in the contract signed with the Management Board.

Article 11. Maintenance of condominiums

1. Maintenance activities include quality inspection, monitoring and assessment, minor repairs, regular repairs and major repairs to construction work of condominium; inspection and maintenance of fire and explosion prevention and combat system; replacement of spare parts or equipment commonly used in condominiums and complexes.

2. Condominium owners shall be responsible for carrying out maintenance of privately-owned portions and make financial contributions to the maintenance of shared area of condominium according to the Law on Housing and this Regulation.

If any damage caused to privately-owned portions has negative effects on other owners, the owner of such damaged portions should carry out repairs to such damage; if the owner fails to carry out the repairs, the managing unit or person tasked with managing the condominium has the right to temporarily suspend or request service providers to temporarily suspend supply of electricity, tap water to such privately-owned portions; if some damage caused to shared portions lies within the privately-owned portion, the owner of the privately-owned portion should create favorable conditions for the managing unit, construction units to repair such damage.

3. Maintenance of condominium’s construction work shall be carried out by qualified units as prescribed in the Law on Construction; Maintenance of condominium’s equipment system shall be performed by qualified units in proportion to maintenance work. The managing unit may be hired to carry out the maintenance work if qualified.

4. If the first condominium meeting has not yet been organized, the maintenance of shared area of condominium shall be carried out according to the maintenance procedures as prescribed in Points b and c, Clause 2, Article 5 and this Regulation.

5. If the first condominium meeting has been organized, the maintenance of shared area of multi-owner condominium shall be carried out according to the maintenance procedures as prescribed in Points b and c, Clause 2, Article 5 and this Regulation and annual maintenance plan passed by the condominium meeting as prescribed in this Regulation; in case of irregular damage or damage caused by natural disasters, conflagration, the Management Board shall make decisions on maintenance according to this Regulation and relevant law provisions but a report should be given in forthcoming meetings.

6. Maintenance of shared area of condominium shall be carried out according to provisions set out in Section 4, Chapter III hereof.

Chapter III

ORGANIZING MANAGEMENT AND USE OF CONDOMINIUMS

Section 1. CONDOMINIUM MEETING

Article 12. Condominium meeting

1. For single-owner condominiums, the condominium meeting is the meeting attended by the owner’s representatives.

2. For multi-owner condominiums, the condominium meeting is the meeting attended by the owner’s representatives or occupants if the owner does not attend.

3. The condominium meeting may issue decisions on management and use of condominiums according to Article 102 of the Law on Housing and this Regulation.

Article 13. First condominium meeting

1. Requirements for organization of the first condominium meeting are as follows:

a) The first condominium block meeting shall be organized within 12 months since the condominium is put into operation and attended by at least 50% of the number of delivered condominiums (including the number of condominiums retained not for sale by the investor); if the percentage of delivered condominiums remains below 50% after this specified period, the first condominium block meeting shall not be organized until at least 50% of the delivered condominiums is reached.

b) The first condominium complex meeting (the first meeting of condominium complexes) shall be organized if attended by at least 50% of the number of delivered condominiums in each condominium (including the number of condominiums retained not for sale by the investor) and at least 75% of representatives of owners of delivered condominiums in each condominium who agree to incorporate the condominiums into the condominium complex.

2. Requirements for number of people attending the first condominium meeting are as follows:

a) For the condominium block meeting, attendance should ensure at least 75% of representatives of owners of delivered condominiums; otherwise, the meeting shall be organized for the second time with the attendance of at least 50% of representatives of owners of delivered condominiums. If the attendance remains below 50% as prescribed in this Point, the investor may make requests to People’s Committees of communes, wards, commune-level towns where the condominium is located (hereinafter referred to as People’s Committee of wards) for organization of the meeting according to Clause 5, this Article;

b) For the first condominium complex meeting, the attendance should ensure adequate proportion of the owners who agree to incorporate condominiums into the condominium complex as prescribed in Point b, Clause 1, this Article; if the attendance remains below the proportion as prescribed, the meeting shall not be organized until the attendance reaches 50% of owners who agreed to incorporate condominiums into the condominium complex; if the attendance remains below 50%, a written request should be made to People’s Committee of wards for organization of the meeting as prescribed in Clause 5, this Article.

c) If the attendance for the condominium complex meeting remains insufficient after the second summoning as prescribed in Point b, this Clause, owners of these condominium blocks may organize the condominium meeting on the establishment of their own Management Board as prescribed in Point a, this Clause.

3. The investor (in case of multi-owner condominium) or owners (in case of single-owner condominium) shall be responsible for preparing contents of meetings including time and venues and organizing official meeting attended by owners and occupants. The investor or owners may organize preparatory meetings in preparation for the official meeting. Preparations for the first condominium meeting are as follows:

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

b) Draft regulations on condominium meeting;

c) Anticipate amendments, supplements to contents of management and use of condominium (if any);

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

dd) For multi-owner condominiums, prepare proposals for condominium administration and operation service price (hereinafter referred to as ‘service price’), draft plan for maintenance of shared area, proposals for the establishment of a managing unit if required by the condominium; if the condominium requires the Management Board, operation model, draft regulations on operation, receipts and expenditures should be proposed;

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

g) Other proposals in relation to management and use of condominiums;

4. The first condominium meeting shall decide following issues:

a) Regulations on condominium meetings (including first meeting, regular meetings and irregular meetings);

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

c) Amendments, supplements to contents of management and use of condominium (if any);

d) Issues as prescribed in Point dd, Clause 3, this Article; particularly, service price shall be based on this Regulation and the agreement with managing unit;

dd) Expenses to be contributed by owners, occupants during the use of condominiums;

e) Other relevant issues;

5. People’s Committee of wards shall be responsible for organizing the first condominium meeting in one of the following cases:

a) The investor fails to organize the meeting after the condominium has been in operation for more than 12 months when percentage of delivered condominiums as prescribed in Point a, Clause 1, this Article reaches 50% and representatives of owners of delivered condominiums have issued a written request to People’s Committee of wards for organization of the meeting;

b) The investor has made preparations for the organization of the meeting but the attendance is not sufficient as prescribed in Clause 2, this Article and the investor and owner representatives have issued a written request to People’s Committee of wards for organization of the meeting;

6. Within 30 days since receipt of the written request from owner representatives or the investor as prescribed in Clause 5, this Article, the People’s Committee of wards shall be responsible for organizing the first condominium meeting. Outcomes of the first condominium meeting organized by People’s Committee of wards shall be applicable to owners, occupants of condominiums the same as condominium meetings organized by the investor.

Article 14. Irregular condominium meetings

1. Irregular condominium meetings shall be organized in one of the following cases:

a) Select replacements for heads or deputy heads who are dismissed, pass away, or missing; in case of replacement of deputy heads as the investor s representatives, the investor shall appoint others without organizing of irregular condominium meetings;

b) Dismiss all members of the Management Board and elect new one.

c) Select replacements for members of the Management Board who are dismissed, pass away or missing in case the collection of suggestions from owners fails to reach the unanimity as prescribed in Point b, Clause 3, Article 26 hereof or select replacements for members of the Management Board as prescribed in Point b, Clause 4, Article 26 hereof;

d) The Management Board requests changing the managing unit or adjustments to service price;

dd) Other cases as requested by more than 50% of representatives of owners of delivered condominiums;

2. Number of people attending irregular condominium block meetings are stipulated as follows:

a) At least 50% of representatives of owners of delivered condominiums with respect to meetings on issues as prescribed in Points a, b, c, or d, Clause 1, this Article;

a) At least 75% of people who have made requests for organization of irregular meetings with respect to meetings proposed by owners as prescribed in Point dd, Clause 1, this Article;

3. Requirements for number of people attending irregular condominium complex meetings are as follows:

a) At least 50% of representatives of owners of delivered condominiums of the condominium complex with respect to meetings on election of heads or all the Management Board of the condominium complex or decisions on provisions laid down in Point d, Clause 1, this Article;

In case each condominium of a condominium  complex makes a request for changing its managing unit or for adjustments made to service price, at least 50% of representatives of owners of delivered condominiums in such condominium are required;

b) In case of selection of replacements for deputy heads or members of the Management Board as representatives of a condominium in the condominium complex, the irregular meeting of such condominium is organized; condominium meetings shall be organized to select replacements when at least 50% of representatives of owners of delivered condominiums within such condominium required.

c) For condominium complex meetings as requested by owners as prescribed in Point dd, Clause 1, this Article, at least 75% of people who make requests for organization of irregular meetings are required;

4. The Management Board shall be responsible for making preparations including time and venue of the meeting attended by owners, occupants.

5. People’s Committee of wards shall be responsible for organizing irregular meetings (condominium, condominium complex levels) to make decisions on issues prescribed in Points a, b, or c, Clause 1, this Article in one of the following cases:

a) The attendance is insufficient as prescribed in Point a, Clause 2, Point a, Clause 3, this Article and the Management Board issues a written request;

b) The Management Board fails to organize irregular meetings (condominium, condominium complex levels) on settlement of issues as prescribed in Points a, b, or c, Clause 1, this Article even though at least 50% of representatives of owners of delivered condominiums make the request.

6. Within 30 days since receipt of the written request from the Management Board or owner representatives as prescribed in Clause 5, this Article, the People’s Committee of wards shall be responsible for organizing the irregular meeting. Outcomes of the irregular meeting organized by People’s Committee of wards shall be applicable to owners, occupants of condominiums the same as condominium meetings organized by the Management Board as prescribed hereof.

Article 15. Annual condominium meetings

1. Annual condominium meeting shall be organized once a year when at least 30% of representatives of owners of delivered condominiums or less as agreed by the owners attend. Annual meetings (condominium, condominium complex levels) shall comprise following issues:

a) Listen to reports on performance of management board and pass annual management board receipts and expenditures;

b) Consider and pass the condominium’s balance sheet of expenses for maintenance of shared area in the year and plans for maintenance of shared area in the following year;

c) Listen to reports on administration and operation of condominiums;

d) Decide other issues as prescribed in Article 102 of the Law on Housing (if any);

2. For annual condominium block meetings in combination with making decisions on one of the following issues, attendance should ensure at least 50% of representatives of owners of delivered condominiums:

a) Select replacements for heads or deputy heads who are dismissed, pass away, or missing; in case of replacement of deputy heads as the investor s representatives, the investor shall appoint others without organizing of irregular condominium meetings;

b) Dismiss all members of the Management Board and elect new one.

c) Select replacements for members of the Management Board (other than heads or deputy heads) who are dismissed, pass away or missing in case the collection of suggestions from owners fails to reach the unanimity as prescribed in Point b, Clause 3, Article 26 hereof or select replacements for members of the Management Board as prescribed in Point b, Clause 4, Article 26 hereof;

3. For annual meetings in combination with election of head of the Management Board or decisions on issues prescribed in Points b, d, Clause 1, Article 14 hereof , attendance should ensure at least 50% of representatives of owners of delivered condominiums of such condominium complex.

4. The Management Board shall be responsible for making preparations including time and venue of the meeting attended by owners, occupants; the Management Board may organize preparatory meetings in preparation for an official meeting.

5. The Management Board may make a written request to People’s Committee of wards for organization of the condominium meeting as prescribed in Clauses 5, 6, Article 14 hereof in case of insufficient attendance as prescribed in Clause 2, this Article.

6. In case the Management Board, its members are found in breach of financial issues, depending severity of the case, the meeting shall issue decisions on dismissal for one, a number of all the members of the Management Board and carry out election of replacements as prescribed in Clause 2 or Clause 3 and Clause 5, this Article; if the offender is subject to criminal prosecution, the meeting shall pass the decision on making requests to competent agencies for consideration and handling according to laws.

In case of need, the meeting shall make decision on the establishment of an inspection team or employment of a professional unit to inspect financial records of the Management Board; if a professional unit is hired, owners or occupants shall make financial contributions to the payments made to this unit as agreed.

Article 16. Participants and voting at condominium meetings

1. For single-owner condominiums, condominium complexes, participants in the meeting comprise owner representatives, occupants and representatives of People’s Committee of wards where the condominium is situated.

2. For multi-owner condominiums, condominium complexes, participants are regulated as follows:

a) For meetings organized for the first time, participants comprise the investor’s representatives, representatives of owners of delivered condominiums and representatives of People’s Committee of wards;

b) For irregular and annual meetings, participants comprise representatives of owners of delivered condominiums, the investor’s representatives (if the investor still owns some areas in the condominium), representatives of the managing unit (if any) and representatives of People’s Committee of wards;

3. Rights to vote at condominium block, condominium complex meetings are based on the number of condominiums and prescribed as follows:

a) Each condominium in a condominium in proportion to one vote;

b) For space other than condominium, each space equivalent to the largest condominium s floor area according to approved designs is in proportion to one vote.

4. Every decision made in condominium block, condominium complex meetings shall be passed under the majority rule in the form of voting; developments of the meeting shall be made in a written record with signatures of presiding members and the secretary.

Section 2. MANAGEMENT BOARD

Article 17. Management board

1. For multi-owner condominiums requiring the establishment of a management board according to the Law on Housing, the Management Board shall be an organization having legal capacity, legal stamp and operating according to the model as prescribed in Clause 1, Article 18 hereof; the Management Board elected in the meeting shall exercise rights and obligations as prescribed in Clauses 1 and 2, Article 41 hereof.

2. For single-owner condominiums or multi-owner condominiums having less than 20 condominiums, the meeting shall decide to or not to establish the Management Board. If the Management Board is established, its operating principles and organizational model are as follows:

For single-owner condominiums, the Management Board shall not have legal capacity and legal stamp; the Management Board shall operate according to the model as prescribed in Clause 3, Article 18 and exercise rights and obligations as prescribed in Clause 2, Article 41 hereof.

b) For multi-owner condominiums, operating model and principles of the Management Board are prescribed in Clause 1, this Article.

3. The Management Board as prescribed in Clauses 1 and 2, this Article has a three-year tenure and shall be re-elected in annual meetings at the end of the tenure except in cases of irregular meetings to elect replacements.

4. Decisions made by the Management Board that exceed authority as prescribed in Article 41 hereof shall be legally invalid; members of the Management Board shall be responsible for making compensations for any damage caused to lawful rights and interests of organizations and individuals.

5. In case a condominium requires the managing unit according to the Law on Housing, the Management Board shall not be allowed to hire others or establish affiliated divisions; in case the management unit is not required, the Management Board may hire outside services. Members of the Management Board shall be responsible for performing assigned duties as prescribed in the Management Board’s operation regulation.

6. The Management Board s operation expenditures shall be contributed annually by owners and occupants based on decisions given in the meeting; such expenditures should be specified in the Management Board s operation regulations and managed through a bank account; The Management Board should use these expenditures purposefully and make reports on receipts and expenditures in annual meetings.

7. Remuneration for members of the Management Board shall be contributed by owners, occupants through decisions given in the meeting based on specific conditions of each condominium, condominium complex and locality unless otherwise as refused by the members.

If a condominium  requires the managing unit as prescribed in the Law on Housing and this Regulation, owners and occupants shall be responsible for paying remuneration to the Management Board via this management unit; this sum of money shall not be included in the managing unit’s business activities. If the managing unit is not required as prescribed in the Law on Housing and this Regulation, this remuneration shall be paid to individual members by the Management Board itself.

Article 18. Management board model

1. Management boards of multi-owner condominiums, condominium complexes shall be established according to model of board of directors of a cooperative or a joint-stock company. Condominium meetings shall make decision on operation model of the Management Board.

2. If the Management Board is established and operates according to model of board of directors of a cooperative, convening and organizing the Management Board’s meetings shall be instructed in the Law on Cooperatives. If the Management Board is established and operates according to model of board of directors of a joint-stock company, convening and organizing the Management Board’s meetings shall be instructed in the Law on Enterprises.

Voting and making written records of the Management Board’s meetings should comply with provisions set out in Article 25 hereof.

3. Management boards of single-owner condominiums, condominium complexes shall be established according to self-governing model; members of the Board shall unify the exercise of rights and obligations among themselves as prescribed in Clause 2, Article 41 hereof.

Article 19. Requirements for members of management board

1. For a multi-owner condominium, members of the Board must be the owners who are using such condominium; for a single-owner condominium, members of the Board must be owner representatives and occupants of such condominium. Members of the Board shall be those who have good health, no previous convictions and offenses.

2. Members of the Board should participate in training courses on management and use of condominiums organized by professional training institutions according to the Ministry of Construction’s regulations.

Article 20. Number, composition of management board

1. The number of members of the Board of condominiums, condominium complexes shall be decided in condominium meetings but should be in compliance with following decisions:

a) For condominium blocks, the number of members of the Board should range from three to five;

b) For condominium complexes, the number of members should range from six to 25 of which each condominium accounts for from three to five members.

2. Composition of multi-owner condominiums, condominium complexes are regulated as follows:

a) For condominium blocks, the Management Board shall comprise one head, one or two deputy heads and other members as decided in condominium meetings.

If the investor still owns some area in the condominium, its representatives may be elected as head or deputy head of the Management Board in condominium meetings.

b) For condominium complexes, the Management Board shall comprise one head; each condominium within shall organize meetings to recommend one or two representatives as deputy heads and other members as decided in condominium meetings.

If the investor still owns some area in the condominium complex, its representatives may be elected as head of the Management Board in condominium meetings. If the investor still owns some area in either condominium of the condominium complex, its representatives may be elected as deputy head of the board of such condominium complex except that the representatives have been elected as head of the board of such condominium complex.

3. For single-owner condominiums, condominium complexes, the board shall comprise one head, one or two deputy heads and other members as decided in condominium complex meetings.

Article 21. Separation and merging of management board

1. Separation and merging of management boards as prescribed in this Article shall apply only to multi-owner condominiums with management board already established.

2. Separation of management board of a condominium complex is instructed as follows:

a) In case representatives of owners of either condominium need to separate from the condominium complex and establish a management board for their own condominium, a condominium  meeting should be convened to collect suggestions from the owners; if at least 50% of representatives of owners of delivered condominiums of such condominium agree (via the minutes of collective meeting), members of the board as representatives of this condominium shall deliver the minutes of collective agreement to management board of the condominium complex.

After the minutes has been delivered to the condominium complex’s management board, owners of the condominium that request separation from the condominium complex shall appoint an interim organization committee for the organization of the first condominium meeting as prescribed in Clauses 1, 2, 3 and 4, Article 13 hereof; election and determination of composition, number and model of management board operation shall be instructed in this Section. Representatives of the condominium as current members of the condominium complex’s management board shall not be recognized as members of the condominium complex’s management board after the condominium block’s management board is established;

b) If representative of the condominium block is still holding the position as head of the condominium complex’s management board after separation, the condominium complex s management board should organize an irregular meeting to elect replacement as prescribed in Article 14 hereof;

c) Procedures on recognition of management board as prescribed in this Clause are instructed in Article 22 hereof.

3. Merging a condominium block’s management board into a condominium complex’s management board is instructed as follows:

a) If individual condominium blocks have their own management board and meet requirements for establishment of a condominium complex as prescribed hereof, management boards of these condominiums should organize meetings to agree on establishment of the condominium complex’s management board; the minutes of meeting should specify plans for merging into the condominium complex s management board, transfer of condominiums’ documents, records of management board’s operation and expenditures administered by condominiums’ management boards.

Each condominium’s management board must organize meetings to collect suggestions from owners; if at least 50% of representatives of owners of delivered condominiums of each condominium agree to merge into the condominium complex (via the minutes of collective agreement), management boards of such condominiums shall be responsible for coordinating organization of the first condominium complex meeting (the first meeting at condominium complex level). Organization of the first condominium complex meeting should be in compliance with provisions set out in Clauses 1, 2, 3, 4, Article 13 and Article 26 hereof.

b) If a condominium block that already has its own management needs to merge into management board of the established condominium complex, the condominium and condominium complex s management boards should organize meetings to make decisions on the merging into the condominium complex s management board.

After the decision on the merging is made, the condominium and condominium complex’s management boards each shall organize meetings to collect suggestions from owners of the condominium and condominium complex respectively; if at least 50% of representatives of owners of delivered condominiums of the condominium complex and at least 50% of representatives of owners of delivered condominiums of the condominium block agree to merge into the condominium complex (via the minutes of collective agreement), management board of this condominium should organize condominium meetings (meetings at condominium level) to appoint representatives to participate in the condominium complex’s management board.

The number and composition of representatives of condominiums participating in the condominium complex’s management board shall be determined in the same way as other condominiums within this condominium complex; if some representative of the investor is holding the position as deputy head of the condominium s management board, such representative may be elected as deputy head of the condominium complex s management board;

c) Procedures on recognition of the condominium complex’s management board as prescribed in this Clause are instructed in Article 22 hereof.

4. Hand-over and management of condominium documents, the management board’s performance records and relevant expenditures with respect to the case as prescribed in Clauses 2 and 3, this Article are instructed as follows:

a) For the case as prescribed in Clause 2, this Article, within seven working days since receipt of a written request from new management board of a condominium, the condominium complex’s management board shall be responsible for handing over documents and all expenditures in relation to the condominium separated from the condominium complex to the new management board of such condominium for management as prescribed;

b) For the case as prescribed in Clause 3, this Article, within seven working days since receipt of a written request from the condominium complex’s management board, the condominium’s management board shall be responsible for handing over documents and all expenditures in relation to such condominium to the condominium complex s management board for management as prescribed;

c) Management boards of condominium blocks or condominium complex shall issue a written request enclosed with a certified true copy of recognition decision issued by People’s Committee of District to the credit institution which is currently administering maintenance expenditures of condominium blocks or condominium complexes for transfer of such expenditures to new management board for management.

d) Upon receipt of the written request as prescribed in Point c, this Clause, the credit institution shall transfer all the remaining expenditures as prescribed in Points a and b, this Clause to new management board; the transfer of records of management board’s performance as well as expenditures as prescribed in this Clause should be made into a written record signed by concerned parties; the management and use of such expenditures after being transferred to new management board is instructed in the Law on Housing and this Regulation.

Article 22. Procedures on recognition and announcement of management board operation

1. Within 10 working days since being elected, the management board shall be responsible for submitting the application for recognition of management board as prescribed in Article 23 hereof to People’s Committee of District where the condominium is situated.

2. Within seven working days since receipt of the application, People’s Committee of District shall carry out inspection and issue the Decision on recognition of management board (herein ‘the Decision’); any decision on recognition of management board that was previously granted should be revoked before the new one is issued.

3. Contents of the Decision comprise:

a) Name of management board and model of management board operation;

b) Number of members of management board;

c) Full name and titles of heads, deputy heads of management board;

d) Tenure of management board;

dd) Obligations for execution of the Decision of relevant organizations, individuals;

4. After the Decision is issued, the recognized management board shall be responsible for opening an account for operation; in case of multi-owner condominiums, the management board should open an account for expenditures for maintenance of shared area according to the Law on Housing, this Regulation and register a legal seal according to laws on registration of legal seals (name of management board inscribed on the seal must be identical to the name recognized by People’s Committee of District) except that the management board already has a seal and an account opened as prescribed.

5. Management board of single-owner condominiums shall operate only when it is recognized by People’s Committee of District. Management board of multi-owner condominiums shall operate only when a seal is registered according to laws and an account opened according to this Regulation.

Article 23. Applications for recognition of management board

1. In case management board is established for the first time, the application for recognition comprises:

a) A written request by management board specifying that the name has been approved in the condominium meeting (the meeting at condominium level); in case of establishment of condominium block’s management board, the name should be taken after name or number of the condominium; in case of establishment of condominium complex’s management board, the name shall be decided in the condominium meeting;

b) The minutes of condominium meeting on election of management board;

c) Lists of members of management board; full name of heads, deputy heads;

d) Management board’s operation regulations passed in the condominium meeting.

2. In case management board is re-elected due to tenure expiration or dismissals or selection of replacements for heads or deputy heads, the application shall comprise:

a) Management board’s written request;

b) Original copy of the Decision;

c) The minutes of condominium meeting on re-election of management board, re-election for alternative Management Board or for selection of replacements for heads, deputy heads;

d) Lists of members of management board; full name of heads, deputy heads;

dd) Management board’s operation regulations passed in the condominium meeting (if amended, supplemented);

3. In case of separation of management board of condominium complex as prescribed in Clause 2, Article 21 hereof, the application shall be instructed as follows:

a) For requests for recognition of management board of a condominium after separation from the condominium complex, the application shall comprise documents as prescribed in Clause 1, this Article enclosed with the minutes of collective agreement as prescribed in Point a, Clause 2, Article 21 hereof; For the case as prescribed in Point c, Clause 2, Article 21 hereof, an original copy of the Decision should be added;

b) For requests for recognition of management board of a condominium  complex after some condominium is separated, the application shall comprise a written request by management board of the condominium complex, original copy of the Decision, lists of remaining members of management board (clearly specify full names of individual members); in case of re-election of head of management board of condominium complex as prescribed in Point b, Clause 2, Article 21 hereof, the minutes of condominium meeting on the election should be added.

4. In case of merging of management board as prescribed in Clause 3, Article 21 hereof, the application for recognition of management board of condominium complex shall be instructed as follows:

a) For requests for recognition of management board of a condominium  complex formed by joining management boards of condominiums together, the application shall comprise documents as prescribed in Clause 1, the minutes of collective agreement as prescribed in Point a, Clause 3, Article 21 hereof and original copy of decisions on recognition of management boards of condominium blocks;

b) For requests for recognition of management board of a condominium  complex formed by merging of management boards of condominiums with previous management board of the condominium complex, the application shall comprise a written request by management board of the condominium complex, the minutes of collective agreement, the minutes of meeting organized by condominiums that need merging as prescribed in Point b, Clause 3, Article 21 hereof, lists of members of management board of condominium complex (including new members from condominiums merging into) and original copy of the Decision.

Article 24. Regulations on management board operation, receipts and expenditures

1. Regulations on operation and receipts and expenditures of management boards of condominiums, condominium complexes shall be passed in condominium meetings, ensuring public disclosure, transparency and full compliance with provisions laid down hereof, the Law on Housing and other relevant law provisions.

2. Operation regulations of management boards of condominiums and complexes comprise following information:

a) Model of management board operation; relationship between members of management board, between management board and relevant agencies, organizations during management and use of condominiums;

b) Principles for organizing management board meetings including regulations on convener, conditions for meetings, chairpersons for meetings, the minutes of meetings, manners of voting, making decisions on issues within responsibility and authority of management board, effects of decisions made by management board;

c) Rights and obligations of management board and specific responsibility of each member of management board of which responsibility for signing documents of management board, signing contracts with managing units, units in charge of maintenance of shared areas of condominiums; responsibility for managing and signing documents in the absence of heads or deputy heads; responsibility for managing legal seals of management board (if seal is available) should be specified;

d) Rights to get access to information and responsibility for supplying information between members of management board;

dd) Reception and responses to proposals by condominium owners, occupants, handling of cases concerning dismissal of members of management board and responsibility for making compensations for damages of persons committing acts in violation of regulations;

e) Mechanism of reporting and approving decisions on expenses of management board; persons responsible for managing documents and records of management board performance;

g) Other information depending on characteristics of each condominium, condominium complex;

3. Regulations on receipts and expenditures of management boards of condominiums and complexes comprise following information:

a) Regulations on receipts managed by management board, name of person as owner of the account for operation, account for expenditures for maintenance of shared area managed by management board, regulations on deposit terms for expenditures for maintenance of shared area of condominium;

b) Regulations on remuneration for each member of management board and other expenses supporting management board operation;

c) Assignment of responsibilities for collecting expenditures, signing in approval for expenses for management board operation on behalf of management board, signing written request for withdrawal of expenditures for maintenance of shared areas of condominiums and other papers;

d) Procedures on withdrawal of money and relevant documents;

dd) Assignment of responsibilities for keeping records of invoices, vouchers of receipts and expenditures of management board;

e) Regulations on maximum level of cash management board may withdraw for making payments to units carrying out maintenance of shared area of condominiums; level of expenditure management board may use for irregular maintenance without organizing condominium meetings or asking for opinions from owners;

g) Regulations on handling of committed offences such as improper spending or appropriation of expenditures managed by management board or offenses relating to keeping records of invoices, vouchers;

h) Other regulations;

Article 25. Voting for decisions made by management board

1. Decisions made by management board of condominiums, condominium complexes shall be passed in the form of voting as prescribed in management board’s operation regulations, made into written records signed by a secretary, members of management board present in the meeting and affixed with a stamp of management board (if seal is available). In case the ayes achieve 50% of the number of members of management board, the final result shall be decided by the head or deputy head (in case the head is absent) unless otherwise as regulated in Clauses 2 and 3, this Article.

2. For multi-owner condominiums, following proposals shall be passed when at least 75% of total number of members of management board of condominiums, condominium complexes vote in favor:

a) Proposals on change of managing unit;

b) Decisions on selection of units carrying out maintenance;

c) Proposals on change of service price;

d) Proposals, requests from management board to the investor during management and use of condominiums;

dd) Other cases as decided by condominium meetings;

3. For decisions on expenditures on maintenance of shared areas of multi-owner condominiums, voting shall be carried out as follows:

a) Decisions on maintenance of shared area of condominium block made by management board of the condominium block should be voted for by 100% of the number of members of the management board except that some member is absent due to force majeure;

b) Decisions on maintenance of shared area of condominium complex made by management board of the condominium complex should be voted for by 100% of the number of members of the management board; In case of maintenance of shared areas of one or some condominiums, the head and 100% of the number of members of management board as representatives of one or some of such condominiums vote in favor except in case that some member is absent due to force majeure;

Article 26. Dismissal of members of management board or management board itself

1. Members of management board of condominiums, condominium complexes shall be dismissed in one of the following cases:

a) Members of management board apply for resignation;

b) Members of management board are no longer condominium owners (in case of multi-owner condominiums);

c) Members of management board move to other locations;

d) Head of management board of condominium block after separation from condominium complex in the case prescribed in Point b, Clause 2, Article 21 hereof;

dd) Members of management board of condominium merging into condominium complex in the case prescribed in Clause 3, Article 21 hereof;

2. Dismissal of management board, members of management board of condominiums, condominium complexes shall be implemented at the request of management board or condominium owners in following cases:

a) Management board fails to make reports on its performance in condominium meetings as prescribed hereof;

b) Management board fails to operate after being elected;

c) Members of management board commit acts in violation of regulations on operation, receipts and expenditures of management board;

d) Members of management board fail to participate in management board operation for six straight months or fail to attend at least 30% of total number of management board meetings for a year.

3. Re-election of members of management board of condominium block is carried out as follows:

a) In case of election of replacements for management board, heads or deputy heads of management board, an irregular condominium meeting should be held to give decisions as prescribed in Article 14 hereof; in case of dismissal of deputy heads as representatives of the investor, the investor shall appoint other representatives as replacements without organization of irregular condominium meetings;

b) In case of election of members of management board apart from the subjects as prescribed in Point a, this Clause, the management board shall propose replacements and ask for opinions from owners; if approved by at least 50% of representatives of owners of delivered condominiums or less as decided by condominium meeting, such replacements shall be recognized as members of management board; otherwise, an irregular condominium meeting shall be organized to elect replacements as prescribed in Article 14 hereof.

4. Re-election of members of management board of condominium complex is carried out as follows:

a) In case of election of replacements for management board or heads of management board, an irregular condominium complex meeting should be held to give decisions as prescribed in Article 14 hereof;

b) In case of election of members of management board of condominium complex apart from the subjects as prescribed in Point a, this Clause, the management board shall propose replacements and ask for opinions from owners of condominiums of the condominium to which the members to be replaced belong; if approved by at least 50% of representatives of owners of delivered condominiums or less as decided by condominium meeting, such replacements shall be recognized as members of management board of the condominium complex; otherwise, an irregular condominium meeting shall be organized to elect replacements as prescribed in Article 14 hereof.

In case of dismissal of deputy heads of management board of condominium complex as representatives of the investor, the investor shall appoint others as replacements without organizing irregular condominium complex meetings;

Section 3. ADMINISTRATION AND OPERATION OF CONDOMINIUMS

Article 27. Condominium administration and operation unit (Managing unit)

1. Managing unit refers to an organization or enterprise which has functions or capacity as prescribed in Clause 1, Article 28 hereof and has its name published on the portals of Agency for Management of Housing and Real Estate Market and the Ministry of Construction. Managing unit may be the investor or other units as prescribed hereof.

2. The investor may directly administer, operate condominiums or entrust other units having functions and capacity as prescribed in Clause 1, Article 28 hereof with such duties when the first condominium meeting is yet to be held. After the first condominium meeting is held, management board shall enter the contract for administration and operation services (herein ‘the service contract’) with the investor who has functions and capacity in condominium administration and operation, or with other units entrusted by the investor.

If a condominium has no lifts, the condominium meeting shall make decisions on hiring managing units or self-governing; in case of the former, regulations on condominium administration and operation as prescribed hereof should be complied with.

3. If the managing unit fails to comply with the agreement, is subject to termination of signed contract or has name removed from the portals of Agency for Management of Housing and Real Estate Market and the Ministry of Construction after entering the service contract with management board, the management board shall organize an irregular condominium meeting as prescribed in Article 14 hereof to consider seeking other replacements.

4. Each condominium block shall have only one managing unit. A condominium  complex may have one managing unit or each condominium in the condominium complex may have its own managing unit as decided in condominium complex meetings. If each condominium has its own managing unit, management board of the condominium complex shall join all the managing units together for performance of administration and operation of shared technical works and system in the condominium complex.

5. Managing units may enter the service contract with other service providers but shall be responsible for terms and conditions under the contract signed with management board.

Article 28. Conditions for functions and capacity of managing units and public notices about lists of managing units

1. Managing units of condominium should meet requirements for functions and capacity as follows:

a) Be established and operate according to provisions set out in the Law on Housing or the Law on Cooperatives and be eligible for performing condominium administration and operation functions or real estate management functions;

b) At least have professional specialty (including technical) offices or divisions; guards and security; reception and environment hygiene services;

c) Members of board of directors and officials working in professional specialty offices, divisions as prescribed in Point b, this Clause should obtain professional level corresponding to job position and certificates of completion of training in professional competence in condominium administration and operation as prescribed by the Ministry of Construction.

2. Managing units that meet requirements as prescribed in Clause 1, this Article should deliver an application to the Ministry of Construction (Agency for Management of Housing and Real Estate Market) for considerations and public announcement on portals of Agency for Management of Housing and Real Estate Market and the Ministry of Construction. The application comprises:

a) Certified true copy of documents proving functions as prescribed in Point a, Clause 1, this Article;

b) Certified true copy of establishment decisions of professional specialty offices or divisions as prescribed in Point b, Clause 1, this Article and lists of officials from such offices, divisions;

c) Certified true copy of certificates of completion of training in professional competence in condominium administration and operation granted to members of board of directors, managers, assistant managers, professional and technical operations shift leaders, assistants of the unit.

3. Within 20 working days since receipt of application as prescribed in Clause 2, this Article, Agency for Management of Housing and Real Estate Market shall be responsible for carrying out consideration and inspection and issuing a written notice to the applicant (the managing unit) if the requirements as prescribed in Clause 1, this Article are met. The notice shall be published on the portals of Agency for Management of Housing and Real Estate Market and the Ministry of Construction as foundations for condominium meetings to refer to and make decisions on selection of managing unit. Only managing units that have names published on the portals of Agency for Management of Housing and Real Estate Market and the Ministry of Construction are eligible for executing the service contract with management board or representatives of condominium management.

After the notice is published on the portals as mentioned above, if managing unit goes bankrupt, dissolved, subject to termination of contract, or is found failing to meet requirements for functions and capacity as prescribed in Clause 1, this Article during the investigation, inspection conducted by competent agencies, Agency for Management of Housing and Real Estate Market shall be responsible for conducting inspection or making requests to the Service of Construction where managing unit is headquartered, and the Ministry of Construction for inspection, and removing name of the managing unit from the portals if it is found failing to meet requirements for performance of administration and operation as prescribed.

4. For state-owned condominiums, depending on specific cases as prescribed in the Law on Housing, the administration and operation may be performed by units that meet requirements as prescribed in Clause 1, this Article or by other organizations according to regulations on management and use of state-owned houses.

Article 29. Contract for condominium administration and operation services (the service contract)

1. The administration and operation of condominiums shall be carried out via the service contract signed between managing unit and management board. The service contract signed between the parties should specify information as prescribed in Clause 2, this Article be in compliance with Annex 02 enclosed herewith.

2. The service contract comprises following information:

a) Full name, address, representatives participating in contract signing;

b) Scale and area of shared portions inside and outside condominiums that need administering and operating;

c) Requirements for quality, quantity, time and venue for provision of services;

d) Service price calculated on the basis of usable square meter (m²); payment of charges;

dd) Service contract duration;

e) Cases of contract termination;

g) Rights and obligations of the parties; responsibility for coordination between the parties; settlement of disputes over terms and conditions of the contract;

h) Other agreements;

i) Effectiveness of the contract;

3. Acceptance, payment, financial settlement and contract settlement shall be carried out according to terms and conditions in the contract and civil laws.

Article 30. Condominium administration and operation service price (the service price)

1. The service price shall be instructed in Article 106 of the Law on Housing and based on types of condominiums and agreements with managing units. In case a condominium is put into service but the first condominium meeting is yet to be held, the service price shall be decided by the investor and specified in the purchase and lease purchase contract; after the first condominium is held, the service price shall be based on negotiations with managing unit.

2. The service price is expressed in Vietnam dong and calculated according to usable square meter (m²) or other areas within the condominium (determined according to carpet area).

3. For mixed-use condominiums, the service price for the functional area, and privately-owned area used as auto parking space is determined as follows:

a) The service price for office, service and commercial area shall be negotiated between the parties on the basis of actual business, service and office activities and specific positions of condominiums.

b) The service price for privately-owned area used as auto parking space shall be negotiated between parties and may be lower than the service price for condominiums in the same condominium. These regulations also apply to privately-owned areas used as auto parking space of residential condominiums.

c) If the service price as prescribed in Points a and b, this clause cannot be agreed by the parties, the service price issued by People’s committees of provinces where such condominium is situated shall be used instead.

4. Managing units shall determine and collect expenditures on administration and operation of condominiums (herein ‘expenditures on services’) from owners and occupants on the basis of prices prescribed in this Article.

Article 31. Expenditures on services

1. Expenditures on services shall be paid on a monthly or periodical basis by owners and occupants to managing units for performance of duties as prescribed in Clause 1, Article 10 hereof.

2. Expenditures on services are determined by multiplying the service price as prescribed in Article 30 hereof by usable area of condominiums or other space other than condominium s in the condominium.

3. Usable area of condominiums or other space other than condominium s in the condominium shall serve as foundations for calculation of expenditures on services as follows:

a) If certificates of land use rights, ownership of houses and land-linked properties (hereinafter referred to as ‘the Certificate’), the area serving as foundations for calculation of expenditures on services shall be the area specified in the Certificate;

b) If the Certificate is yet to be granted, the area serving as foundations for calculation of expenditures on services shall be usable area privately owned by owners (carpet area as prescribed in Clause 2, Article 101 of the Law on Housing); this area is determined in the purchase and lease purchase contract or in practice.

4. For state-owned condominiums, expenditures on services shall be collected according to Point a, Clause 5, Article 106 of the Law on Housing.

Section 4. MAINTENANCE OF CONDOMINIUMS

Article 32. Principles for maintenance of condominiums

1. Condominium owners shall be responsible for carrying out maintenance of privately-owned portions and make financial contributions to the maintenance of shared area of condominium to maintain quality of condominiums and ensure safety during use.

2. Maintenance of privately-owned portions should not have any effect on privately-owned portions and works, equipment system used in common in condominiums.

3. Maintenance of shared portions of residential and mixed-use condominiums (if undefinable) shall be carried out according to maintenance plan passed by condominium meeting and procedures on maintenance of equipment established under this Regulation.

4. Maintenance of shared portions of residential and mixed-use condominiums (if separately definable) shall be carried out according to following principles:

a) For shared portions of condominium area and shared portions of the entire condominium, the owners shall carry out maintenance according to the plan passed by the condominium meeting and established procedures except in cases of unexpected damage caused by natural disasters, conflagration;

b) For shared portions of the functional area, the owners thereto shall carry out the maintenance according to procedures on maintenance of condominiums and equipment system as prescribed.

5. Maintenance of shared portions of condominium complex shall be carried out by owners and occupants of such condominium complex.

6. Only individuals or units that meet requirements for conditions and capacity shall be hired by owners and management board of condominiums to carry out the maintenance.

Article 33. Plans for maintenance of shared portions of condominiums

1. Plans for maintenance of shared portions of condominiums shall be passed by condominium meetings to apply to the cases as prescribed in Clause 3 and Point a, Clause 4, Article 32 hereof.

2. The investor shall be responsible for establishing and submitting maintenance plan to the first condominium meeting for approval; for subsequent meetings, management board shall be responsible for cooperating with managing units or other qualified units to establish maintenance plan for reporting to the meeting for approval.

3. Plans for maintenance of shared portions of condominiums applied to the cases as prescribed in Clause 3, Point a, Clause 4, Article 32 hereof shall be established and passed on the basis of the procedures on maintenance of civil works of condominiums, procedures on maintenance of equipment system provided by the investor and current conditions of shared portions of condominiums.

4. Contents of plans for maintenance of shared portions of condominiums applied to the cases as prescribed in Clause 3 and Point a, Clause 4, Article 32 hereof comprise:

a) Work items that need maintenance in the year and are expected to be maintained for the next three to five years; Work items subject to unexpected maintenance in the year (if any);

b) Time and progress of maintenance of each work in the year;

c) Expected budgets for maintenance of each work item;

d) Responsibility for supporting and creating conditions of owners in relation to the area that needs maintenance; responsibility for inspection, monitoring and acceptance of management board;

dd) Other relevant issues;

Article 34. Work items of condominiums eligible for use of expenditures on maintenance of shared portions for maintenance

1. Work items and area that belong to shared portions as prescribed in Points a and b, Clause 2, Article 100 of the Law on Housing;

2. Equipment systems that belong to shared portions of condominiums including lifts, power generators, water pumps, ventilation system, power system for lighting, domestic activities, electrical equipment used in common, water supply, drainage system, gas supply system, central heating, communications, fire control, lightning rod and other equipment;

3. Outside infrastructure connected to condominiums; public works as prescribed in Point b, Clause 2, Article 100 of the Law on Housing;

4. Handling wastewater stagnation and septic tank emptying; injecting microorganisms to condominium’s wastewater treatment system;

5. Other work items that belong to shared portions of condominiums as agreed in the purchase and lease purchase contract or according to the Law on Housing;

Article 35. Maintenance contract and implementation of maintenance of shared portions of condominiums

1. Management board, owners of the functional area may choose and sign maintenance contract as follows:

a) For civil work of a condominium, management board, owners may directly hire a managing unit to perform maintenance (if such condominium has the managing unit; for condominiums requiring no managing unit, other qualified units may be hired to perform the maintenance instead;

b) For shared equipment system, managing unit may be hired or authorized to hire equipment supplier or other units to carry out maintenance; in case of replacement of equipment, the equipment supplier should provide warranty coverage according to the period as regulated by the manufacturer;

2. Maintenance units should perform maintenance according to established maintenance procedures, ensure safety for owners and occupants during the maintenance, and comply with progress and other terms and conditions under signed maintenance contract.

3. Maintenance contract is established and signed between management board (or owner of the functional area) and maintenance unit according to laws. For condominiums requiring no management board, representatives of condominium management shall sign the contract with maintenance unit.

4. When the maintenance is completed, concerned parties should organize acceptance testing; payment and settlement of expenditures on maintenance shall be carried out according to terms and conditions of the contract with all invoices, vouchers being included according to laws;

Article 36. Establishment, transfer and management of expenditures on maintenance of shared portions of multi-owner condominiums

1. The investor shall be responsible for opening an account at a credit institution which is currently operating in Vietnam for temporary management of expenditures on maintenance of shared portions of multi-owner condominiums as prescribed in the Government’s Decree No. 99/2015/NDD-CP dated October 20, 2015 detailing the implementation of a number of articles of the Law on Housing (herein ‘Decree No. 99/2015/NDD-CP’).

2. For residential condominiums, mixed-use condominiums with shared portions of condominium area and the functional area being undefinable, after the first condominium meeting is held, the opening of account, transfer and management of expenditures on maintenance of shared portions shall be carried out as follows:

a) Management board shall open an account at a credit institution for management and use of expenditures on maintenance of shared portions of the condominium block;

b) Within seven working days since receipt of a written request for transfer of expenditures on maintenance from management board, the investor shall be responsible for transferring expenditures on maintenance collected from buyers, tenants and expenditures on maintenance with respect to the area retained not for sale, lease purchase or rent by the investor as prescribed in Point b, Clause 1, Article 108 of the Law on Housing to the account opened by management board as prescribed in Point a, this Clause for management and use according to laws;

c) Deposit account for expenditures on maintenance of residential condominiums may be co-owned by one or multiple members of management board; deposit account for expenditures on maintenance of mixed-use condominiums is co-owned by one member of management board as owner of condominium area and one member of management board as representative of owner of the functional area.

Deposit terms and owner of deposit account for expenditures on maintenance as prescribed in this Clause are instructed in management board’s regulations on receipts and expenditures passed by the condominium meeting.

3. For residential condominiums with shared portions of condominium area and the functional area being definable, after the first condominium meeting is held, the opening of account, transfer and management of expenditures on maintenance of shared portions shall be carried out as follows:

a) Management board shall open an account at a credit institution currently operating in Vietnam for management of expenditures on maintenance of shared portions of the condominium area and entire condominium block;

b) Deposit terms and owner of deposit account for expenditures on maintenance as prescribed in Point a, this Clause shall be determined in the same way as residential condominiums as prescribed in Point c, Clause 2, this Article.

c) Owner of the functional area shall be responsible for self-governing expenditures left as prescribed in Point b, Clause 4, this Article for maintenance of shared portions of this functional area;

d) Transfer of expenditures on maintenance of shared portions of condominiums as prescribed in this Clause is instructed in Clause 4, this Article.

4. Transfer and management of expenditures on maintenance for cases as prescribed in Clause 3, this Article is prescribed as follows:

a) Within seven working days since receipt of a written request from management board, the investor shall be responsible for transferring expenditures on maintenance collected from buyers, tenants and expenditures on maintenance with respect to the area retained not for sale, lease purchase or rent by the investor as prescribed in Point b, Clause 1, Article 108 of the Law on Housing to the account opened by management board as prescribed in Point a, Clause 3, this Article for management and use according to laws;

b) For expenditures on maintenance payable for the functional area, the investor shall transfer the proportion as agreed with buyers, tenants in the purchase and lease purchase contract as prescribed in Clause 5, Article 108 of the Law on Housing or approved in the condominium meeting (if not finalized in the purchase and lease purchase contract) to the account established by management board as prescribed in Point a, Clause 3, this Article for management and maintenance of shared portions of the entire condominium; remaining expenditures shall be self-governed by the investor as prescribed in Point c, Clause 3, this Article.

5. In case of establishment of a condominium  complex, based on use purpose of each condominium within, management board of the condominium complex shall open a separate account for expenditures on maintenance of each condominium as prescribed in Clauses 2, 3, and 4, this Article;

6. Transferor (party that transfers expenditures) and transferee (party that receives expenditures) as prescribed in this Article shall be responsible for fulfilling procedures on settlement of these expenditures prior to the transfer. Documentation of settlement of expenditures on maintenance of shared portions comprises:

a) Written records of area, equipment that belongs to shared portions of condominiums as prescribed in the Law on Housing;

b) Written records of total expenditures collected according to the Law on Housing of which the amount of money collected from buyers, tenants and amount of money paid by the investor as prescribed is specified; Name, number of deposit account managed by the investor;

c) Lists of maintenance works performed by the investor accompanied by invoices, vouchers proving amount of money paid to maintenance units and figures of remaining expenditures (if any);

7. If the investor fails to transfer or transfers in an inadequate and unpunctual manner expenditures on maintenance of shared portions as prescribed in this Article, management board of condominium shall make requests to People’s committees of provinces where the condominium is situated for coercive measures according to Decree No. 99/2015/NDD-CP.

8. The investor shall be responsible for collecting expenditures on maintenance of shared portions and transfer to management board according to laws and this Regulation;

Article 37. Use of expenditures on maintenance of shared portions of multi-owner condominiums

1. Expenditures on maintenance of shared portions of condominium block is used only for the maintenance of shared portions of such condominium. Management board shall use such expenditures on the maintenance of items as prescribed in Article 34 hereof; expenditures that are not used up in case a condominium  is demolished shall be used to support relocation or added to funds for maintenance of shared portions of new condominiums (if re-constructed).

2. Management board should make public announcement about established deposit account in the condominium meeting. Use of budget for operation and maintenance of shared portions of the condominium should comply with this Regulation and should be accompanied by records, invoices, vouchers as prescribed for monitoring and management.

3. In case of establishment of accounts for management of expenditures as prescribed in Point a, Clause 3, Article 36 hereof, both management board and the investor shall be unanimous in dividing the expenditures into two proportions, expenditures on maintenance of shared portions of entire condominium and expenditures on maintenance of shared portions of condominium area.

Proportion of expenditures used for maintenance of shared portions of condominium area shall be used for maintenance of shared portions of condominium area only; Proportion of expenditures used for maintenance of shared portions of entire condominium shall be used for maintenance of shared portions of entire condominium only; The investor and management board may be unanimous in the establishment of two different accounts for management of two proportions of expenditures as prescribed in this Clause.

4. The credit institution that is managing the deposit account for expenditures on maintenance of shared portions of condominiums shall be responsible for transferring money to the maintenance unit’s account within three working days since receipt of written request from management board. The written request for transfer of money comprises:

a) Request form specifying reasons for transfer of money and the amount to be transferred;

b) The minutes of management board meeting on withdrawal of expenditures on maintenance;

c) Maintenance plan passed by condominium meeting except in cases of irregular maintenance;

d) The contract for maintenance signed with individuals, units that have capacity for maintenance performance as prescribed;

5. In case value of the contract for maintenance is within permissible limits as stated in the management board s regulations on receipts and expenditures of management board, after receipt of written request as prescribed in Clause 4, this Article, the credit institution shall carry out procedures on transfer of cash to management board for direct payment to maintenance units.

6. In case of irregular maintenance works with expenditures within permissible limits as stated in management board s regulations on receipts and expenditures, the management board shall issue a written request accompanied by the minutes of management board meeting on money withdrawal and the signed maintenance contract to the credit institution; within three working days since receipt of such written request, the credit institution shall transfer the money; transfers through accounts or in cash are instructed in Clauses 4, 5, this Article.

7. Expenditures used for the maintenance of shared portions of condominiums in a condominium complex are instructed as follows:

a) In case of irregular maintenance of shared portions of entire condominium complex, expenditures on the maintenance shall be deducted equally from expenditures on maintenance of shared portions of each condominium;

b) In case of irregular maintenance of shared portions of a number of condominiums in the condominium complex, expenditures on the maintenance shall be deducted equally from expenditures on maintenance of shared portions of each related condominium;

c) Withdrawal of expenditures on maintenance of shared portions as prescribed in Points a and b, this Clause is instructed in Clauses 4, 5 and 6, this Article.

Section 5. RIGHTS AND OBLIGATIONS OF ORGANIZATIONS, INDIVIDUALS FOR MANGEMENT AND USE OF APRTMENT HOUSES

Article 38. Rights and obligations of the investor

1. Manage and operate condominiums as prescribed in Clause 2, Article 27 hereof; Submit proposal of qualified managing units to the first condominium meeting for considerations, decisions in case:

a) The investor has no function and capacity for management and operation and fails to entrust other qualified units.

b) The investor has function and capacity for management and operation but fails to participate in and also fails to entrust other qualified units.

2. Collect expenditures on maintenance of shared portions of condominiums as prescribed in Articles 108, 109 of the Law on Housing, Decree No. 99/2015/NDD-CP and hand such expenditures over to management board according to the Law on Housing and this Regulation;

3. Preside over organization of the first condominium meeting, appoint people to participate in management board and voting in condominium meetings as prescribed hereof;

4. Hand over infrastructural system outside condominiums to local regulatory agencies according to laws; establish and hand over condominium documentation to management board as prescribed hereof;

5. Manage and use the works serving domestic activities of owners and occupants of condominiums assigned by the State or constructed for business in accordance with the purposes specified in approved project;

6. Maintain its own portions; make compensations to owners for damages & losses caused by maintenance or no maintenance;

7. Request competent agencies to handle acts of invading its legally-owned properties or acts of obstructing legal business according to approved project;

8. Cooperate with management board in handling difficulties arising during the management and use of condominiums;

9. Buy compulsory fire and explosion insurance according to the Law on Fire and Explosion Prevention and the Law on Insurance Business;

10. Make compensations for damages & losses as agreed in the contract or as prescribed by laws; comply with decisions on penalties made by competent state agencies;

11. Other rights and responsibilities according to laws;

Article 39. Rights and obligations of condominium owners

1. For multi-owner condominiums, the owners thereto shall exercise following rights and obligations during management and use of condominiums:

a) Be entitled to own and use privately-owned portions and shared portions according to the Law on Housing and this Regulation; Carry out maintenance of privately-owned portions according to the Law on Housing and this Regulation; make compensations for any damage caused to other owners;

b) Request the investor, management board or People’s Committee of Ward to organize condominium meetings as prescribed hereof; attend condominium meetings and vote on issues raised in condominium meetings according to the Law on Housing and this Regulation;

c) Request the investor, managing units, management board to provide information and make public disclosure of management and use of condominiums;

d) Fully comply with decisions made in condominium meetings including cases of absence; comply with decisions made by competent state agencies;

dd) Make adequate and timely payment of expenses on management and operation of condominiums, expenses on maintenance of shared portions and other fees and charges as prescribed by laws or as agreed with service providers;

Owners that fail to make the payments as prescribed shall be handled according to terms and conditions in the service contract signed between management and managing unit;

e) Comply with rules and regulations on management and use of condominiums; detect and make early notifications of committed offenses concerning managing and use of condominiums to competent state agencies and managing unit;

g) Create favorable conditions and assist functional units in carrying out maintenance of shared portions as prescribed;

h) Restore former conditions and be liable for any damage caused to the area, equipment that belong to shared portions or privately owned portions; be liable to handling according to law and for any damage caused if committing acts of obstructing legal businesses of owners of the functional area;

i) Buy compulsory fire and explosion insurance according to the Law on Fire and Explosion Prevention and the Law on Insurance Business;

k) Exercise other relevant law provisions;

2. For single-owner condominiums, the owners thereto shall be entitled to use of condominiums and exercise rights and obligations as prescribed in Points b, c, d, e and k, Clause 1, this Article.

Article 40. Rights and obligations of occupants as non-owners

1. Use shared portions and privately-owned portions of condominiums according to the Law on Housing and this Regulation;

2. Exercise rights and obligations as agreed with owners;

3. Attend condominium meetings (in case of single-owner condominiums); attend condominium meetings on behalf of owners who do not attend (in case of multi-owner condominiums);

4. Exercise relevant rights and obligations as prescribed in Points b, c, d, dd, e, g, h and k, Clause 1, Article 39 hereof;

Article 41. Rights and obligations of management board

1. Management board of multi-owner condominiums shall exercise rights and obligations as prescribed in Clause 1, Article 104 of the Law on Housing and this Regulation and following responsibilities:

a) Take delivery, maintain and manage condominium documents; supply one set of documents received from the investor to managing unit in case the condominium requires a managing unit as prescribed in Clause 2, Article 5 hereof except that the managing unit is the investor;

b) Make preparations for organization of condominium meetings as prescribed hereof; make public disclosure of contents of signed service contract and maintenance contract in condominium meetings;

c) Make reports on management board receipts and expenditures, performance of maintenance, receipts and expenditures on maintenance of shared portions of condominiums to condominium meetings for ratification as prescribed hereof;

d) Exercise rights over shared portions of condominiums on behalf of owners as prescribed in the Law on Housing and this Regulation; Do not incite other people to cause loss of order and security in condominium area;

dd) Bear responsibility to owners for assigned tasks; comply strictly with regulations on operation, receipts and expenditures of management board;

e) Request competent agencies to organize condominium meetings, recognize management board according to this Regulation; organize condominium meetings to make decisions on replacement of managing units that no longer meet requirements for management and operation of condominiums as prescribed hereof;

g) Make requests to competent agencies for handling in case the investor fails to hand over condominium documents, expenditures for maintenance of shared portions of condominiums as prescribed;

h) Hand over documents, records under management to new management boards;

i) Any member of management board that violates this Regulation and relevant law provisions, depending on severity of violation shall be handled, penalized for administrative violations or liable to criminal prosecution and make compensations for any damaged caused;

k) Comply with decisions on handling made by competent state agencies and exercise other rights and responsibilities according to laws;

l) Exercise other rights and obligations as prescribed in regulations on operation, receipts and expenditures of management board passed by condominium meetings and provisions in this Regulation.

2. Management board of single-owner condominiums shall exercise rights and obligations as prescribed in Clause 2, Article 104 of the Law on Housing and other relevant rights and obligations as prescribed in Points a, b, dd, e, g, h, i, k and l, Clause 1 in this Article.

Article 42. Rights and obligations of management units

1. Carry out management and operation of condominiums as prescribed hereof and the service contract signed with management board or representatives of condominium management (for condominiums without management boards); carry out maintenance of shared portions of condominiums according to maintenance contract;

2. Sign sub-contracts with service providers in the management and operation of condominiums (if any); monitor supply of services by these units;

3. Issue written notices about collection, payment of relevant expenses; make notices about requirements and necessary information to occupants in case of natural disasters, epidemic diseases and conflagration; provide instructions on installation of equipment in privately-owned portions;

4. Collect expenditures on services as agreed with owners, occupants of condominiums; pay compensations to members of management board under decisions made by condominium meetings;

5. Make public notices about administration and operation of management board on a six-month basis or at the request of competent agencies; make reports on management and operation of condominiums; collect suggestions from occupants on the services;

6. Cooperate with management board in handling other relevant difficulties arising during the management and use of condominiums;

7. Comply with decisions on handling made by competent state agencies;

8. Exercise other rights and obligations as agreed in the service contract or according to relevant law provisions;

Chapter IV

SETTLEMENT OF DISPUTES AND HANDLING OF VIOLATIONS IN MANAGEMENT AND USE OF CONDOMINIUMHOUSES

Article 43. Settlement of disputes

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

2. Disputes over expenditures on administration and operation of condominiums, handover, management and use of expenditures on maintenance of shared portions shall be settled by People’s committees of provinces where such condominium is situated; in case decisions given by People’s committees of provinces are not agreed, the dispute may be submitted to the People’ Court for settlement according to laws.

3. Disputes between members of management board shall be settled in conformity with the management board’s operation regulations ratified by the condominium meeting.

4. Disputes between management board with owners, occupants of condominiums over election, dismissal or replacement of members of management board shall be settled via reconciliation; otherwise, a condominium meeting house should be convened for settlement.

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

Article 44. Handling of violations

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

2. If the organization of a condominium meeting is inconsistent with this Regulation, decisions and outcomes therefrom shall not be accepted.

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

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

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

Chapter V

PROVISIONAL PROVISIONS

Article 45. Transitional provisions on management board operation model and management of shared portions of condominiums

1. Any condominium established before the effective date of this Regulation needs to re-organize operation model, change number and composition of management board according to the Law on Housing and this Regulation, or separate or merge management board should organize condominium meetings to elect management board as prescribed hereof.

2. If management board of a condominium was established before the effective date of this Regulation with regulations on operation, receipts and expenditures inconsistent with this Regulation or without any regulations at all as prescribed hereof, the management board should establish the regulations, or make amendments and supplements to previous regulations.

3. Any condominium that has management board established before the effective date of this Regulation and does not require management board according to the Law on Housing and this Regulation, the management board shall organize condominium meeting to make decision on operation of the management board.

4. Expenditures on maintenance of shared portions of condominiums transferred before the effective date of this Regulation shall be managed and used in conformity with the Law on Housing and this Regulation. The investor and management board may be unanimous in the establishment a deposit account for expenditures on maintenance of shared portions of condominiums in conformity with provisions of this Regulation but reports must be made in forthcoming meetings.

Article 46. Transitional provisions on administration and operation of condominiums

1. For condominiums currently having managing units that are not required as prescribed by the Law on Housing, a condominium  meeting should be convened to give decisions on either terminating or continue the service contract signed with the managing unit.

2. Any managing unit currently in operation and found unqualified under this Regulation should submit an application with supplements made to its conditions and capacity to the Ministry of Construction as prescribed in Article 28 of this Regulation within one year since the effective date of this Regulation; if the managing unit fails to make supplements to conditions and capacity as prescribed in this Regulation after this period, such managing unit shall be made ineligible for signing the service contract except that such condominium is owned by the state and administered and operated in conformity with the provisions of the law on management and use of state-owned houses.

3. Managing units that meet requirements for conditions and capacity as prescribed hereof should deliver an application as prescribed in Clause 2, Article 28 hereof to the Ministry of Construction for recognition and publication on the portals of Agency for Management of Housing and Real Estate Market and the Ministry of Construction within six months since the effective date of this Regulation. Managing unit failing to make submission of the application as prescribed hereof after this period shall be made ineligible for signing the service contract except that such condominiums are owned by the state, managed and operated in conformity with the provisions of the law on management and use of state-owned houses.

Chapter VI

IMPLEMENTATION

Article 47. Responsibility of People’s committees of provinces and Services of Construction

1. People’s committees of provinces:

a) Direct execution of provisions set out in this Regulation in administrative divisions; provide instructions on management and use of condominiums based on local realities and this Regulation;

b) Organize propaganda and dissemination of regulations on management and use of condominiums in administrative divisions;

c) Promulgate service price frame as prescribed in Clause 5, Article 106 of the Law on Housing;

d) Take coercive measures to recover expenditures on maintenance of shared portions of condominiums according to the Law on Housing and this Regulation;

dd) Direct local functional agencies to receive construction works, infrastructural system from projects on investment and construction of houses in conformity with the approved contents and written approval on investment policies issued by competent agencies;

e) Consider and make decisions on management of population in each condominium, complex in conformity with laws;

g) Organize inspection, investigation and handling of violations within competence or at the request of competent agencies; handle committed acts in violation of regulations on management and use of condominiums as prescribed;

h) Other rights and responsibilities according to laws;

2. The Services of Construction shall be responsible for assisting People’s committees of provinces in performing state administration on management and use of condominiums in administrative divisions; make reports to the Ministry of Construction on management and use of condominiums in administrative divisions on a six-month, annual basis or on request;

Article 48. Responsibility of People’s committees of districts

1. Make reports to People’s committees of provinces for decisions on assignment of responsibility for administrative management for condominiums area and handle difficulties within competence;

2. Make decision on recognition of management board as prescribed hereof;

3. Inspect management and use of condominiums; handle within competence or make requests to competent agencies for handling committed acts in violation of regulations on management and use of condominiums in administrative divisions;

4. Exercise other responsibilities assigned by People’s committees of provinces according to laws;

Article 49. Responsibility of People’s committees of wards

1. Carry out propaganda or mobilize organizations and individuals to comply with this Regulation and regulations on management and use of condominiums;

2. Monitor, inspect and handle difficulties arising during the management and use of condominiums within competence or make reports to People’s Committee of districts for consideration and handling;

3. Coordinate and create favorable conditions for managing units to provide services in administrative divisions;

4. Organize and attend condominium meeting as prescribed hereof;

5. Exercise other obligations according to laws;

Article 50. Responsibility of Agency for Management of Housing and Real Estate Market

1. Instruct and speed up execution of this Regulation;

2. Inspect management and use of condominiums across the country and make proposals to competent agencies for handling committed acts in violation of laws on management and use of condominiums;

3. Cooperate with relevant agencies in organizing training, propaganda and dissemination of the provisions of the law on management and use of condominiums across the country;

4. Compile reflections from relevant organizations and individuals on difficulties arising, and make proposals for amendments and supplements to this Regulation as appropriate;

5. Exercise other obligations in relation to management and use of condominiums as prescribed hereof or as directed by the Minister of Construction;

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

ANNEX 01

MODEL TABLE OF REGULATIONS ON MANAGEMENT AND USE OF CONDOMINIUMS
(Enclosed with the Ministry of Construction’s Circular No. 02/2016/TT-BXD)

TABLE OF REGULATIONS ON MANAGEMENT AND USE OF CONDOMINIUMS

Article 1. Regulations applicable to owners, occupants, temporary residents, guests

1. Owners shall comply strictly with the Regulation on management and use of condominiums issued by the Ministry of Construction and this Table of Regulations.

2. Guests coming in and out of condominiums shall register and present identity papers at the reception area or security guards and comply with instructions given by receptionists or security guards. In case of need, receptionists or security guards may retain the guests’ identity papers for the inspection of security and safety of the condominium. Such identity papers shall be not required for visits to office, service and commercial areas.

3. Temporary occupants shall register temporary residence at the reception desk (if any) or security guards and with police authorities of relevant wards.

4. Occupants, temporary occupants shall be responsible to the law for acts in violation of the Regulation on management and use of condominiums and this Table of Regulations.

5. Regulations applicable to employees working in the office, service and commercial areas shall besupplemented by the investor, condominium meeting to accord with each condominium.

Article 2. Prohibited acts during use of condominiums

1. Cause loss of security and order, talk filth and use radio, TV or sound equipment which give high-decibel noise.

2. Make a mess, drop litter or waste and toxic substances that cause environment pollution in condominium area.

3. Throw objects out of windows or balcony of the condominium;

4. Raise and leave livestock and poultry unbridled in the condominium;

5. Burn votive papers, make a fire in the condominium except in locations as prescribed.

6. Hang out the washing or put clothing and objects on handrails or the space from handrails upward or across windows of the condominium.

7. Organize activities of gambling and prostitution in the condominium;

8. Trade in stuff that is highly explosive, inflammable representing a hazard to lives and properties of occupants.

9. Conduct illegal trade, storage and use of drugs in the condominium and other areas in the condominium.

10. Transform uses and purposes of shared portions and facilities of the condominiums on one’s own initiative.

11. Other acts according to relevant law provisions on condominiumsshall be supplemented via the condominium meeting to accord with each condominium.

12. Other prohibited acts as prescribed;

Article 3. Regulations on use of shared portions of condominium

Owners, occupants and guests should comply with following regulations:

1. Use elevators and other shared facilities in accordance with their purposes, uses; Children under 12 should be accompanied by parents or caretakers while using elevators or shared facilities.

2. Do not cause damage or perform acts that cause damage to shared properties of the condominium;

3. Do not appropriate or use shared areas for one’s own purpose; do not leave privately-owned objects in shared areas;

4. Comply fully with regulations on stopping and parking;

5. Use community activity house in accordance with purposes and uses as prescribed in the Law on Housing;

6. Comply fully with regulations on fire safety in condominiums;

7. Other regulationsthat shall be supplemented via the condominium meetingto accord with each condominium.

Article 4. Regulations on repairs, replacement or installation in condominiums, other privately-owned areas

1. Owners or occupants may carry out repairs, replacement or installation in the condominiums or areas of their private ownership but should not cause any damage to shared areas and affect other owners.

2. Repairs, replacement or installation of equipment should not change, deform shapes or damage structure of condominiums.

3. Replacement and repairs of the equipment that belongs to the shared portions closely connected with the condominium and other privately-owned areas should conform to the Regulation on management and use of condominiums issued by the Ministry of Construction but should not affect other owners areas. Upon detection of any damage, owners should make notification to the Managing unit for repairs and replacement and create favorable conditions for the construction units to carry out repair work.

4. In case facilities of the office, service and commercial areas that join shared portions of the condominium are damaged, owners of these functional areas shall carry out repair work and replacement according to the Regulation on management and use of condominiums;

5. Movement of equipment, belongings or materials within the condominium should be notified to the Managing unit and must be carried out from 8:00am to 6:00pm the same day to avoid possible effects on activities of the condominium.

6. Other regulations that shall be supplemented via the condominium meeting to accord with each condominium.

Article 5. Regulations on handling of problems to condominium

1. Upon detection of any problem that can cause danger to human lives and properties of the condominium, owners should make immediate notification to the Managing unit for handling.

2. In case of an emergency that requires evacuation of people out of the condominium, instructions given on loudspeakers or escape signs or from security guards, competent units should be followed.

Article 6. Regulations on public disclosure of condominium-related information

1. The Managing unit should make public disclosure of information concerning management and use of condominiums on the bulletin or notice board or other communication means of the condominium.

2. Regulations on fire prevention and fighting should be placed as prescribed; regulations on use of elevators should be placed next to the elevators to ensure safe and convenient use.

Article 7. Rights and obligations of owners, occupants of condominium

1. Request the management board and the Managing unit to provide information concerning management and use of condominiums;

2. Owners of the condominium shall pay insurance on fire and explosion according to laws.

3. Strictly comply with the Table of Regulations and the Regulation on management and use of condominiums issued by the Ministry of Construction;

4. Make timely and adequate payment for expenses on management and operation of the condominium and other expenses according to laws and agreement with the service providers;

Article 8. Handling of violations

1. Owners, occupants, temporary occupants and guests who commit acts in violation of this Table of Regulations and the Regulation on management and use of condominiums, depending on severity of violations, shall be liable for penalties according to laws and pay compensation for damages caused.

2. Owners, occupants shall comply strictly with penalty decisions made by competent agencies.

_______________

Notes: Apart from regulations above, the investor, condominium meeting may make other supplements that accord with each condominium yet go against the laws and social ethics.

ANNEX 02

MODEL CONTRACT FOR MANAGEMENT AND OPERATION OF CONDOMINIUMS (SERVICE CONTRACT)(Enclosed with the Ministry of Construction’s Circular No. 02/2016/TT-BXD)

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

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/NDD-CP dated October 20, 2015 providing instructions on the implementation of a number of articles of the Law on Housing;

Pursuant to the Ministry of Construction’s Circular No. 02/2016/TT-BXD dated February 15, 2016 enclosed with the Regulation on management and use of condominiums;

Pursuant to the demands of the two parties,

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

Party A: Condominium Management Board or condominium management representatives (hereinafter referred to as ‘Party A )

Business name:

Legally represented by:

Address:

Account No.:                             At:…………………..

Facsimile:

Party B: Condominium Managing Unit (hereinafter referred to as ‘Party B )

Business name:

Legally represented by:

Address:

Phone number:

Account No.:                             At:…………………..

Tax code:

Facsimile:

Website (if any):

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

Article 1. Interpretation of terms

In this contract, some terms are construed as follows:

1. “The Management Board, representatives for management of condominiums” refer to the management board of condominium or representatives for management of condominium…⁽¹⁾, address…, known as Party A for short.

2. “Condominium Managing Unit” means…⁽²⁾, known as Party B for short.

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

4. “Force majeure events” means the events as prescribed in Article 14 of this contract.

5. “Works” mean the services performed by Party B as prescribed in Article 3 of this contract.

6. “Customers/residents” mean owners of condominiums, owners of other areas in the condominium, legal occupants.

7. “Property” means all equipment, facilities closely associated with the condominium.

Article 2. Characteristics of condominium

Party B undertakes to perform services of management and operation of the condominium with following characteristics:

1. Name of condominium/condominium complex⁽³⁾:

2. Type of condominium⁽⁴⁾:

3. Location of condominium:

4. Scale of condominium (Number of floors, condominiums):

5. The works that serve daily activities of owners, occupants of the condominium:

Article 3. Management and operation of condominium services

1. Party A agrees to hire Party B to carry out the works of management and operation of condominium at the address….as follows⁽⁵⁾:

a) Establish and implement plans for management and operation of the condominium:

b) Construct a management and operation apparatus and provide personnel; carry out regular control of the management and operation processes according to plans;

c) Establish and adjust the management and operation processes, forms to suit characteristics of the condominium and apply them to actual management of the condominium;

d) Control and ensure public security and order, deal with environmental hygiene problems, carry out maintenance of technical systems (electricity, water, pumps, power generators, elevators, escalators, communications…) and other services;

dd) Actively make contact and cooperate with service providers and assist residents in registering access to services of tap water, TV, Internet, telephone...;

e) On behalf of Party A, release updates on prices for services of management and operation of the condominium (herein ‘the services’) and collect expenses for management and operation of the condominium, service fees, fees for consumption of tap water paid by owners on a monthly basis, make proposals to Party A for appropriate measures to ensure collection of these expenses;

g) Monitor maintenance of electromechanical equipment according to monthly, yearly plans by electromechanical maintenance company and make reports to Part A;

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

i) Carry out minor repair work for facilities of the condominium: replacement of lights, switches in shared areas; Party B shall only cover expenses for repair personnel and simple materials (lights for corridors, switches, fixtures…); Party A shall cover expenses for replacement materials, equipment within the maintenance fund unless otherwise as agreed by the two parties;

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

l) Speed up and advise residents to comply with the Regulation on management and use of condominiums; Provide advice and support to residents in registering temporary and permanent residence in the condominium; be open to opinions and settle complaints from occupants concerning management and use of the condominium;

m) Organize regular fire training internally for the Managing unit’s members, technical division, security staff, service and sanitation division (possibly including residents); cooperate with Party A in establishing regular plans for fire prevention and fighting as prescribed and provide instructions to customers/occupants on actions to be taken in case of emergency;

n) Select and contract qualified contractors to supply such services as security, bike and automobile keeping, daily sanitation, ornamental plant care and insect treatment…; provide advice to Party A in selecting and contracting qualified contractors to provide other maintenance and repair services (if any),…;

o) Provide reports on the management and expenses for monthly, yearly activities in the condominium meeting;

p) Perform other works as agreed:…

2. Party B shall undertake management and operation and provide as requested by Party A the services that meet requirements for quality, safety, environmental hygiene, fire and explosion safety and applicable regulations.  

3. Party B shall carry out management and operation in the form of provision of personnel in charge of management, engineering, control and operation of activities of the condominium and only perform the works as authorized by Party A

4. In the event Party B is qualified to carry out the maintenance of shared portions in the condominium, Party A shall give some consideration and make decision on signing a contract with Party B for the job.

Article 4. Prices for management and operation of condominium services, payment terms

1. Prices for management and operation of condominium services (herein ‘service prices’) shall be determined as follows:

Party B shall be allowed to collect other receipts from provision of value-added services in the condominium (elevator advertising, taxi parking areas for hire, other receipts,…);as agreed by the two parties.

2. Content of service prices includes⁽⁷⁾:

a) Expenses for electricity used for operation of shared facilities of the condominium; expenses for water used in public areas, plant watering; expenses for diesel oil used for operation of backup power generator; lights in corridor area, lights in escape stair; electricity for use of elevators, tap water pumps and wastewater pumps;

b) Expenses for security, guarding services (including supporting gear: walkie-talkie, flashlights,...);

c) Expenses for public sanitation services (including chemicals, tools,…); green tree care, fertilizers and watering; periodical insect treatment; expenses for collection and transport of domestic waste on a monthly basis;

d) Expenses for newspapers, books at the halls; expenses for telephone, Internet, stationery serving the Managing unit’s activities; expenses for making contact with local authorities as requested; expenses for decorations on the occasion of festival events or Tet holidays;

dd) Expenses for chemicals used for sewer, septic tank treatment; expenses for annual fire training;

e) Expenses for periodical inspection of tap water sample; cleaning of underground water tank, tap water tank (if any);

g) Expenses for office equipment and furniture (desks, computers, printers...) and technical instruments for the Managing unit s office; expenses for uniforms of the Managing unit’s employees, pays, remunerations, allowances, social insurance and social benefits for employees performing the management and operation of this condominium; 

h) Other expenses as agreed by the parties;

3. Principles for determination of service prices:

a) Service prices as prescribed in Clause 1, this Article shall be kept unchanged for 12 months since the effective date of this contract;

b) In the event of changes of wage policy as promulgated by the state or any adjustment made to energy prices (electricity, water, oil) that affect unit price of personnel and energy cost, the two parties shall set up a consultation for re-determination of service prices in accordance with reality.

4. Payment terms for the management and operation of condominium services shall be stipulated as follows:

a) For condominiums:

Party B shall carry out collection of expenses for the management and operation of the condominium (by multiplying the service prices as prescribed in Clause 1, this Article by usable area of each condominium) Collection shall be carried out from...to... on a monthly basis through cash or bank transfer payments as agreed.

b) For office, service and commercial areas or other additional receipts:

Party B shall carry out collection of the expenses (by multiplying the service prices as prescribed in Clause 1, this Article by usable area of the area) Collection shall be carried out from...to... on a monthly basis through payment in cash or by bank transfer.

Article 5. Rights and obligations of Party A⁽⁸⁾

1. Party A’s rights:

a) Request Party B to make timely reports on the performance of the works as agreed in the contract or authorized:

b) Enjoy receipts from performance of the services in the condominium by Party B to be included in Part A’s funds serving common interests of residents in the condominium (herein ‘common interest fund’).

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 as agreed by the parties;

2. Party A’s obligations:

a) Make payments for repair, maintenance and replacement for damaged equipment including expenses for materials and personnel and other expenses within Party A s liability (except for the works within Party B s responsibility as prescribed in Clause 2, Article 3 of this contract); If the damage to equipment caused by Party B, Party B shall be liable for all the repair costs;

b) Make payment to Party B for the works according to the prices as agreed in Article 4 of this contract;

c) Provide records of the condominium and necessary information as prescribed to Party B for performance of the works;

d) Provide working offices (area, location…) and parking lot for the Managing unit’s personnel, security and sanitation staff;

dd) Create favorable conditions and closely cooperate with Party B during the implementation of the contract;

e) Remind owners and occupants of obligations concerning management and operation of the condominium under this contract and law provisions;

g) Other obligations as agreed by the parties;

Article 6. Rights and obligations of Party B

1. Party B’s rights:

a) Request Party A to provide records of the condominium and necessary information as prescribed for performance of the works;

b) Collect expenses for the works as prescribed in Article 4 of this contract;

c) Carry out collection of money from residents for paying remunerations to members of the management board or representatives of owners (according to the prices as decided in the condominium meeting), collection of expenses for use of water, electricity (if any); deal with cases of failure or delay in paying the expenses as agreed in this contract and under the Regulation on management and use of condominiums;

d) Collect other receipts from provision of value-added services in the condominium (elevator advertising, taxi parking areas for hire, other receipts,…);

dd) Temporarily suspend provision of services or make requests to the electricity, water, energy providers of the condominium for temporary suspension of such services if owners, occupants have failed to pay expenses for use of the services after second notice;

e) Show logo/brand on Party B’s documents during the performance of the works and display Party B’s signboard at the condominium after being approved by Party A on location, size and form;

dd) Other rights as agreed by the parties;

2. Party B’s obligations:

a) Carry out the works and ensure quality as prescribed in Article 3 of this contract including authorized works (if any) and make reports to Party A;

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

c) Inspect and monitor management and operation concerning activities of the condominium including elevators, fire equipment, backup power generators, water pumps, environmental hygiene...;

d) Ensure that management and operation of technical system of the condominium conforms with the manufacturer’s recommendations and instructions or designs;

dd) On 15^thday of month at the latest, make a report to Party A on the operation of the condominium 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 its staff’s performance;

g) Manage, store and make effective and purposeful use of documents, equipment and property provided by Party A and return to Party A in good conditions after all obligations under the contract are fulfilled (except for natural wear);

h) Be entitled to exploit services in the condominium to increase receipts and share such receipts with Party A as agreed in Article 15 of the contract to set up the common interest fund;

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

k) Hand over to the management board records of the condominium as prescribed in Article 5 hereof upon completion of this contract;

l) Other obligations as agreed by the parties;

Article 7. Arrangement of managing personnel

1. Party B is entitled to arrange or transfer any staff working for Party B in the condominium in case of need but ensure no obstruction caused to the management of the building. If head of the Managing unit is changed, a written notice should be issued to Party A.

2. If Party B’s staff (including head of the Managing unit) fail to complete the duties as agreed in the contract, Party B shall carry out inspection and appoint replacements and make the report to Party A.

3. Work time of the Managing unit:

a) Office of the Managing unit: (morning:….., afternoon:…..);

b) Reception: by shift work (including specific shifts as follows:…);

c) Technical division: on duty around the clock (working 7 days a week including holidays and Tet)

Article 8. Payment for expenses within Party A’s liability

1. Before December 31 of the preceding year, Party B shall deliver to Party A the expenditure plan for management and operation of the condominium including receipts from management and operation services for condominiums, functional areas (office, service and commercial areas) and other accompanying services (if any); expenses for the management and operation of the condominium, expenses within Party B’ and Party A’s liability.

2. Party A shall make payment to the contractor for repairs and maintenance of damage caused to the facilities…and similar expenses within Party A’s liability.

Article 9. Coordination between Party A and Party B

1. Party A’s responsibility:

a) On behalf of representatives of owners and occupants, sign the contract with Party B for performance of the works as prescribed in Article 3 of this contract;

b) Administer the fund for maintenance of shared portions of the condominium according to laws; administer the common interest fund (if any) to make payment for maintenance purposes or other public purposes;

c) Work with functional organizations, agencies on behalf of residents or as prescribed by laws;

d) Consider and approve the plan for management and operation of the condominium and issues concerning responsibility and authority of Party A; sign a contract for repair, maintenance and replacement of ornamental plants (outside Party B s scope of work)…(if any) dd) Make payments for materials, facilities, maintenance and renovation of the condominium outside Party B’s scope of payment;

e) Appoint its representatives to cooperate with Party B in the management and operation of the condominium according to management process to meet requirements for service quality;

2. Party B’s responsibility:

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

b) Provide personnel to carry out technical operation, management and care of customers, control activities of the condominium;

c) Manage and monitor customer services, environmental hygiene services, security guarding services, fire safety, bike and auto keeping, insect treatment and ornamental plant care for the condominium,… Party B shall manage and control professional competence and bill of quantity of these contractors according to established standards and management processes and make regular reports to Party A;

Article 10. Duration of contract⁽¹⁰⁾

1. Duration of this contract is…..months, since……

2. At least 30 days prior to expiration date of the contract, Party B shall deliver a written proposal to Party A for an extension of the contract; in the event Party A has no opinion in writing, the contract shall be automatically extended for a period equal to that of the contract as prescribed in Clause 1, this Article.

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

1. The contract shall be terminated in following cases:

a) The contract expires and the parties do not wish extension;

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

c) Either of the parties goes bankrupt or dissolved or ceases operation according to laws;

d) Due to a force majeure event that cannot be coped with for a period of …..straight months;

2. Party A may unilaterally terminate the contract when Party B commits following acts:

a) Acts in violation of Clause 2, Article 6 of this contract that cause damage to Party A;

b) Increase service prices otherwise than in accordance with provisions stated in Article 4 of this contract or change terms and conditions of the contract without approval of Party a;

c) Transfer this contract or assign the management and operation of the condominium to other contractor without Party A’s approval;

d) Fail to remedy acts in violation of the obligations under this contract for ….days since receipt of written notice from Party A;

dd) Go bankrupt or dissolved or cease operation according to laws;

e) Other cases as agreed by the parties;

Party A shall not be allowed to unilaterally terminate the contract except for cases as prescribed in this Clause. Otherwise, Party A shall pay compensations as prescribed in Clause 2, Article 12 of this contract.

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

a) Fail to make payment for due amounts to Party B under this contract within ….days since receipt of written notice from Party B;

b) Fail to provide records of the condominium and necessary information as prescribed to Party B for performance of the works;

c) Other cases as agreed by the parties;

Party B shall not be allowed to unilaterally terminate the contract except for cases as prescribed in this Clause. Otherwise, Party B shall pay compensations as prescribed in Clause 2, Article 12 of this contract.

4. Handover upon contract termination:

a) Within…days since receipt of notice about contract termination, the two parties shall set up consultations for determination of balance-sheet of the contract. Within …days since Party B fulfills obligations concerning making reports, handing over figures and property and a contract settlement minute is signed by the two parties, Party A should make payment to Party B for the remaining amounts according to the settlement minutes;

b) Within…days since the contract expires, Party B shall hand over to Party A all properties in original conditions, accounting records and public debt figures (in electronic files and hard copy), records of the condominium, information concerning customers/residents...and other materials, properties (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 the expenses for actual remedial work and expenses relating to damage leading to loss of property in one of following cases:

a) Such damage caused by Party B;

b) Party B shows a lack of responsibility or commits acts in breach of the contract;

c) In the event either of the parties violates provisions set out in Clause 2 or Clause 3, Article 11 of this contract, the offending party shall pay an amount of money valued…times the service price of the most recent month in compensation to the other party (according to figures provided by Party B)

Article 13. Responsibility after contract termination

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

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

3. Party B Within…days since the contract expires, Party B shall hand over to Party A all properties in original conditions, accounting records and public debt figures (in electronic files or hard copy), documents of the condominium, information about customers/residents...and other materials, property (if any) under Party A’s ownership; If such provisions are breached, Party B shall pay an amount of…as compensation for damage caused to Party A…

4. Other agreements…

Article 4. Force majeure events

1. One of following cases shall constitute a force majeure event:

a) War or natural disaster or change of policies, laws of the State of Vietnam;

b) Implementation of decisions by competent state agencies or other cases as prescribed by laws;

c) An acute injury or sickness that requires medical emergency services in medical facilities;

d) Other cases as agreed by the parties;

2. Notifications of force majeure events:

a) Upon occurrence of one of the force majeure events as prescribed in Clause 1, this Article, the Party that is affected by the event should make a written notification to the other party within .... days since the event occurs (any paper proving the event must be accompanied if available);

b) The affected Party’s failure to fulfill its obligations shall not constitute a breach of the contract and shall not serve as foundation for termination of this contract;

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

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

dd) If a force majeure event has occurred and cannot be coped with for …straight months, the contract shall automatically expire unless otherwise as agreed.

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

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

Article 15. Provision of secondary services and residual funds

1. Party A’s rights and responsibility:

a) Within this contract, Party A shall authorize Party B to seek and exploit services under ownership of the condominium such as collection of fees from advertisements, signboards, vacant plots and other services This operation should ensure no effect on Party B’s works, landscape beauty and public order at the condominium.

b) Receive …% of the amount of money in addition to existing receipts collected from operation of services for Party A to set up the common interest fund;

2. Party B’s rights and responsibility:

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

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

3. Residual funds:

Through method of financial autonomy, the two parties shall agree that residual funds (if any) during the effective period of this contract shall belong to Party B. Party B shall agree to set aside a percentage of this fund for Party A to include in the common interest fund.

Article 16. Other agreements…

Based on each condominium, the parties shall enter into other agreements not in opposition to terms and conditions of this contract, the Regulation on management and use of condominiums, the Law on Housing and social ethics;

Article 17. Contract appendices

Following documents shall constitute an integrated part of this contract:

1. Plans for management and operation of the condominium:

2. Records of condominium;

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

Article 18. Disputes and dispute settlement

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

2. In case a dispute on expenditures for management and operation of the condominium that cannot be settled, within …days since the dispute arises, both parties are entitled to submit a written request to People’s committees of provinces where the condominium is situated for considerations and handling or bring the case to the People’s Court if the decision given by the People’s committee is not agreed.

3. In case of any dispute on the implementation of the service contract, the parties are entitled to make requests to the People s Court for settlement according to laws. Any decision given by the People s Court shall be final and binding on both parties.

Article 19. Effect of contract

1. This contract takes effect since……

2. Settlement of the contract shall be carried out via a settlement minute signed by both parties.

3. Both parties shall undertake to perform all the terms and conditions of this contract;

4. The contract is made into…copies of equal legal validity. Each party holds one copy.

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

 _______________

¹Name of the condominium;

²Name of the Managing unit according to business registration or Establishment Decision;

³Name of the condominium complex;

⁴Specify the condominium is intended for residence only or for both residence and service business;

⁵Subject to agreement between Party A and Party B, both parties may add, cut or change the works performed by Party B as prescribed in Clause 1 of Article 3.

⁶The area (m²) used for calculation of prices is usable area (according to carpet area).

⁷Costs of the service prices as prescribed in Clause 2, Article 4 may be modified, adjusted or supplemented according to agreement by both parties.

⁸Apart from rights and obligations as stated in Article 5 and Article 6, both parties may make other supplements to meet work requirements.

⁹Both parties shall carry out further negotiations on the information specified in Clause 3, Article 7.

⁹Both parties shall carry out further negotiation on the information specified in Article 10.

¹¹Both parties may carry out negotiations on making supplements to unilateral termination of contract as specified in Clause 2 and Clause 3, Article 11.

¹²Both parties may make further negotiations on the information specified in Clause 1, Article 12.

¹³Any space left blank under this contract shall be filled up on the basis of agreement between by both parties.