Circular No. 03/2014/TT-BXD dated February 20, 2014 of the Ministry of Construction on amending the Article 21 of the Circular No. 16/2010/TT-BXD dated September 01, 2010 of the Ministry of Construction specifying and guiding some contents of the Government's Decree No. 71/2010/ND-CP dated June 23, 2010, detailing and guiding the Housing Law

CIRCULAR

Amending and supplementing Article 21 of the Ministry of Construction’s Circular No. 16/2010/TT-BXD of September 1, 2010, specifying and guiding a number of provisions of the Government’s Decree No. 71/2010/ND-CP of June 23, 2010, detailing and guiding the Housing Law[1]

Pursuant to the November 29, 2005 Housing Law and June 18, 2009 Law No. 34/2009/QH12, amending and supplementing Article 126 of the Housing Law and Article 121 of Land Law No. 13/2003/QH11;

Pursuant to the Government’s Decree No. 71/2010/ND-CP of June 23, 2010, detailing and guiding the Housing Law (below referred to as Decree No. 71/2010/ND-CP);

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

At the proposal of the director of the Department of Housing and Real Estate Market Management;

The Minister of Construction promulgates the Circular amending and supplementing Article 21 of the Ministry of Construction’s Circular No. 16/2010/TT-BXD of September 1, 2010, specifying and guiding a number of provisions of the Government’s Decree No. 71/2010/ND-CP of June 23, 2010, detailing and guiding the Housing Law (below referred to as Circular No. 16/2010/TT-BXD).

Article 1. To amend and supplement Clauses 1 and 2, Article 21 of Circular No. 16/2010/TT-BXD, as follows:

1. To amend and supplement Clause 1 as follows:

“1. House-related transactions must be established in the form of contract (referred to as house-related contracts) with the details specified in Article 93 of the Housing Law, the Civil Code, and Article 63 of Decree No. 71/2010/ND-CP, and according to the house contract forms and details provided in the appendices to this Circular.

A house purchase and sale contract of real estate traders must be made in 4 copies. The purchaser shall keep one copy, the investor shall keep other three copies for carrying out procedures for payment of tax and registration fee, grant of certificate of land use rights and ownership of house and other assets attached to the land (below referred to as certificate) to the purchaser and for preservation purpose. The house purchase and sale contract is legally valid to determine rights and obligations of the purchaser throughout the course of management and use of the purchased house, including the case in which the certificate has been granted by a competent agency to the purchaser”.

2. To amend and supplement Clause 2 as follows:

“2. In addition to the details specified in Clause 1 of this Article, a commercial condominium apartment purchase and sale contract which is signed with the investor must also indicate the following: area under common ownership and use, area under private ownership of the condominium owner; floor area for construction of the apartment, use area of the apartment (the apartment’s clearance dimensions), for calculation of the apartment purchase price; a maintenance fund equal to 2% of the apartment sales; the condominium operation charge principle of adjusting such charge pending the establishment of a condominium management board. Enclosed with the condominium apartment purchase and sale contract must be an internal regulation on use management of the condominium issued by the investor, the approved design drawing of the floor plane of the apartment, story having the apartment and condominium site.

Use area of the apartment is determined according to the apartment’s clearance dimensions as in the example’s drawing below and stated in the certificate granted to the purchaser, including the area of wall separating rooms in the apartment and the balcony and loggia (if any) attached to the apartment, excluding the area of wall surrounding the house, the area of wall separating the apartments, the area of floor under pillar, and the area of floor with technical box in the apartment.

The area of balcony is calculated by the total area of the floor, or from the inner edge of the party-wall in case of the semi-detached balcony. Upon the handover of the apartment, the parties must clearly state in the written record of apartment handover or contract annexes the apartment use area actually handed over, and the area stated in the signed apartment purchase and sale contract. The written record of apartment handover or contract annexes is/are regarded as integrated part of the apartment purchase and sale contract”.

Article 2. Provisions on commercial condominium apartment purchase and sale contract

1. Promulgated together with this Circular is a model contract on purchase and sale of commercial condominium apartment between the investor and the purchaser, to replace the model contract on purchase and sale of commercial condominium apartment provided in Appendix No. 16 to Circular No. 16/2010/TT-BXD.

2. From the effective date of this Circular, signed contracts on purchase and sale of commercial condominium apartments between investors and customers which are not conformable with the contents and model contract promulgated together with this Circular will neither be regarded as lawful nor used as a basic for grant of certificates. Investors shall register contracts on purchase and sale of commercial condominium apartments made according to the form provided in this Circular with the competent agency prescribed by law to protect consumer rights.

Article 3. Effect

1. This Circular takes effect on April 8, 2014.

2. For parties that sign an apartment purchase and sale contract before the effective date of this Circular, the determination of the apartment floor area for calculation of a purchase price shall be conducted according to the agreement in the signed contract.

3. Any problems arising in the course of implementation should be reported to the Ministry of Construction for amendment and supplementation.-

For the Minister of Construction
Deputy Minister
NGUYEN TRAN NAM