Decision No. 08/2008/QD-BXD dated May 28, 2008 of the Ministry of Construction promulgating the Regulation on use management of condominiums

DECISION

PROMULGATING THE REGULATION ON USE MANAGEMENT OF CONDOMINIUMS

THE MINISTER OF CONSTRUCTION

Pursuant to the November 29, 2005. Housing Law;

Pursuant to the Government's Decree No. 90/ 2006/ND-CP of September 6,2006, detailing and guiding the implementation of the Housing Law;

Pursuant to the Government's Decree No. 17/ 2008/ND-CP of February 4, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Construction;

At the proposal of the director of the House and Real Estate Market Management Department.

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on use management of condominiums.

Article 2.-This Decision takes effect 15 days after its publication in "CONG BAO" and replaces the Minister of Construction's Decision No. 10/ 2003/QD-BXD of April 3,2003. promulgating the Regulation on use management of condominiums.

Article 3.- Ministries, ministerial-level agencies, government-attached agencies, provincial/municipal People's Committees and concerned organizations and individuals shall implement this Decision.

REGULATION

ON USE MANAGEMENT OF CONDOMINIUMS
(Promulgated together with the Minister of Construction's Decision No. 08/2008/QD-BXD of May 28, 2008)

Chapter I

GENERAL PROVISIONS

Article 1.- Purposes and requirements of promulgation of the Regulation

1. To improve the living conditions and ensure safety for users, ensure security and order: to establish urban civilized lifestyle in condominiums: to maintain the quality, architecture, beautiful look, and environmental sanitation of condominiums:

2. To define the rights, obligations and responsibilities of organizations and individuals involved in the use management of: condominiums

Article 2.- Scope and subjects of regulation

1. This Regulation applies to condominiums of all types and multi-story buildings with mixed-use purposes and flooring spaces used as residential apartments.

2. Subjects of application include organizations and individuals involved in the use management of condominiums.

Article 3.- Condominium use management principles

1. The use management of condominiums complies with the principles of self-management, compliance with the housing law. relevant laws and this Regulation.

2. The raising of funds for use management of condominiums and the management of such funds comply with the principles of self-financing, publicity and transparency: the contribution level of funds for management must not exceed the prices set by People's Committees of provinces or centrally run cities.

Article 4.- Interpretation of terms

In this Regulation, the terms below are construed as follows:

1. A multi-owner condominium is the one with two or more owners.

2. An independent condominium is the one which is located separately from other condominiums.

3. A condominium group is a group of two or more condominiums which are located close to each other and share parts of public areas or technical equipment under common ownership.

4. A multi-story building with mixed-use purposes is the one with different flooring spaces used for different purposes (office, department store, residential apartment and other purposes).

5. Privately owned sections in condominiums include:

a/ Flooring spaces inside apartments, including balconies and loggias attached to such apartments:

b/ Other areas in the condominiums, which are recognized as being under private ownership according to law;

c/ Technical equipment systems for private use which are attached to apartments or sections under private ownership.

6. Common-ownership sections in condominiums include:

a/ The remaining flooring spaces of condominiums other than those under private ownership defined in Clause 5 of this Article:

b/ The space and force-bearing structure systems, technical equipment for common use in condominiums, including frames, pillars, force-bearing walls, wails surrounding condominiums, walls partitioning apartments, floors, roofs, terraces, corridors, stairs, elevators, exits, garbage discharge cages, technical boxes, vehicle parking, power, water and gas supply, communication, radio and television, water drainage, underground toilet tank, lightning-arresting and fire-fighting systems and sections not under private ownership of any apartment:

c/ External technical infrastructure systems connected to the condominiums.

7. Investors are persons who own capital or are assigned to manage the use of capital for investment in the construction of condominiums according to law; and who directly sell condominium apartments to buyers.

8. Condominium management units are organizations currently assignee to directly manage such condominiums.

9. Condominium owners are organizations or individuals lawfully owning privately owned sections in the condominiums.

10. Condominium users are organizations or individuals law fully using privately owned sections in the condominiums.

11. Condominium operation management enterprises are units having professional capability for managing the operation of condominiums, which are set up and operate under the law on enterprises.

Chapter II

USE MANAGEMENT OF CONDOMINIUMS

Section 1. CONTENTS OF USE MANAGEMENT OF CONDOMINIUMS

Article 5.- Condominium operation management

1. Condominium operation management covers management of the control and maintenance of the operation of equipment systems (including elevators, water pumps, standby electricity generators, technical infrastructures and other equipment) under common ownership or common use of condominiums: the provision of services (security, sanitation, garbage collection, flower garden or ornamental tree tending, insect killing and other services) to ensure the normal operation of condominiums.

2. The operation of condominiums must be performed by enterprises having the professional capability for management of condominium operation.

Article 6.- Condominium maintenance

1. Condominium maintenance covers maintenance, small repairs, medium repairs and overhauls of condominiums in order to preserve their quality. The maintenance complies with the provisions of the Minister of Construction's Circular No. 08/2006/TT-BXD of November 24, 2006, guiding the maintenance of construction works.

2. Condominium maintenance must be undertaken by organizations having the legal person status and the function for construction activities suitable to the maintenance contents.

Article 7.- Condominium transformation and demolition

Condominium transformation and demolition comply with Articles 81, 83, 84, 85, 86, 87, 88 and 89 of the Housing Law; Articles 55 and 56 of the Government's Decree No. 90/2006/ND-CP of September 6, 2006, detailing and guiding the implementation of the Housing Law (below referred to as Decree No. 90/2006/ND-CP for short) and Resolution No. 34/2007/NQ-CP of July 3, 2007, on a number of solutions to the transformation or re-construction of damaged or degraded old condominiums.

Article 8.- Preservation of condominium files

House owners (for single-owner condominiums) or condominium owners shall compile and keep files under Clause 2, Article 66 of the Housing Law.

For a multi-owner condominium, the preservation of files on sections under common ownership is provided as follows:

1. The Management Board shall keep and preserve the drawings and files mentioned in Clause 2 of this .Article and supply them to the condominium operation management or maintenance units when so requested. If the Management Board is not yet set up. the investor or unit currently managing the condominium shall compile and preserve the files and hand them over to the Management Board once it is set up.

2. The preserved files comprise construction completion drawings and dossiers related to the process of maintaining and operating the condominiums. For condominiums put to use before the effective date of the Housing Law but having no construction completion drawings, the investors or units currently managing the condominiums or Management Boards shall measure and make such drawings again.

Article 9.- Regulations on use management of condominiums

1. Every condominium must have its own regulation on its use management with the following principal contents:

a/ Responsibilities of organizations (the investor or the condominium management unit the operation management enterprise and the Management Board) in the use management of the condominium under the provisions of this Regulation;

b/ Rights and obligations of lawful condominium owners or users;

c/ Acts prohibited in the use of the condominium:

d/ Charges and charge rates paid for the operation management and maintenance of the condominium and other reasonable charges;

e/ The list, positions, areas and sizes of privately owned sections in the condominium: sections under common ownership or common use inside and outside the condominium:

f/ Provisions on amendment and supplementation of the regulation and some other provisions.

2. For a multi-owner condominium

a/ For a condominium sold from the effective date of this Regulation, before the sale thereof, the investor shall elaborate a regulation on condominium use management as provided for in Clause 1 of this Article and notify it to the buyers. Such regulation is attached to. and an inseparable part of contracts on sale and purchase of apartments or privately owned sections of the condominium.

b/ For a condominium sold before the effective date of this Regulation, the investor or Management Board (if already set up) or the unit currently managing the condominium shall elaborate a regulation on condominium use management as provided for in Clause 1 of this Article for adoption at a condominium meeting. In this case, the regulation must be consistent with contents of the investment decision, contents of the projects approved by competent authorities (if any) and written agreements or commitments between the seller and the buyers when the contracts on sale and purchase of apartments or privately owned sections of the condominium (if any) are concluded.

3. For a single-owner condominium

The condominium owner shall base on the contents specified in Clause 1 of this Article to elaborate a regulation on condominium use management, suitable to the practical conditions of that condominium and publicize it to condominium users.

Section 2. CONDOMINIUM USE MANAGEMENT STRUCTURE AND ORGANIZATION

Article 10.- Condominium owners and users in the organization of condominium use management

Condominium owners and users have the following rights and responsibilities in the organization of condominium use management:

1. To participate in condominium meetings and vote on matters falling under the jurisdiction of the condominium meetings as provided for in Clause 3. Article 11 of this Regulation. The voting rights are determined according to the unit of apartment or unit of flooring space under private ownership | one vote for an apartment or a square meter of flooring space);

2. To contribute opinions to investors or condominium operation management unit or the Management Board on condominium use management.

Article 11.- Condominium meetings

1. Condominium meeting means a meeting of condominium owners and users. Condominium owners and users may appoint their representatives or authorize others to attend such a meeting.

A condominium meeting may be organized for a condominium or a group of condominiums. If a condominium meeting is organized for a condominium, it must be attended by more than 50% of the total number of condominium owners and users. If a condominium meeting is organized for a group of condominiums, each condominium must send its representatives to attend; the number of representatives of each condominium must represent over 10% of its owners and users.

A condominium meeting shall be organized once every year; when necessary, an extraordinary meeting may be organized when more than 50% of the total number of owners and users so request in writing or when the Management Board so requests together with the written request of 30% of the condominium owners and users.

2. Within no more than 12 months after a condominium is handed over and put to use and 50% of its apartments or more have been sold (including those retained by the investor), the investor (for multi-owner condominiums) or the owner (for single-owner condominiums) shall organize the first condominium meeting. In case the condominium investor can not be identified, the unit managing that condominium or the

People's Committee of the concerned urban district, rural district, provincial capital or city (below collectively referred to as district-level People's Committee) shall assume the prime responsibility for organizing the first condominium meeting.

3. The condominium meeting is the body having the highest power in the use management of that condominium under the provisions of the housing law and this Regulation. The condominium meeting shall decide on the following issues:

a/ Nomination and election of the Management Board; nomination, additional election, dismissal of Management Board members, in case of organizing an extraordinary condominium meeting; adoption or supplementation, amendment of the working regulation of the Management Board: adoption of responsibility allowance levels for Management Board members and other reasonable expenses in service of the Management Board's operation;

b/ Adoption or supplementation, amendment of regulations on condominium use management as provided for in Article 9 of this Regulation;

c/ Adoption of the selection of enterprises to manage the condominium operation and enterprises to maintain the condominium;

d/ Adoption of working reports on operation management and maintenance and financial reports of units assigned to perform such tasks:

e/ Decision on other contents concerning the condominium use management.

For a single-owner condominium, it is unnecessary for condominium meetings to realize the contents specified at Points c and d of this Clause.

4. All decisions of a condominium meeting must be made on the principle of majority and adopted by show of hands or ballot, which must be recorded in writing.

Article 12.- Condominium management boards

Condominium management boards are prescribed in Clause 1 of .Article 71. Article 72 of the Housing Law.

1. The composition of a condominium management board is provided as follows:

a/ For a multi-owner condominium, the Management Board is composed of representatives of condominium owners and users and representatives of investors or condominium management unit. It may comprise between 5 and 15 members, depending on the specific conditions of that condominium or group of condominiums. The Management Board has one head, one or two deputy heads, including one deputy head who is appointed by the investor or the condominium management unit to join the Management Board.

When the investor is merged or transfers his/ her/its rights and obligations to another enterprise, that enterprise shall appoint its official to join the Management Board. The investor may withdraw from the Management Board when the latter operates well and the condominium use management has been put into order and if so approved at a condominium meeting or by the district-level People's Committee.

b/ For a single-owner condominium, the Management Board shall be composed of the owner and representatives of condominium users.

2. Responsibilities and powers of a condominium management board

a/ To preside over condominium meetings under Clause 1. Article 11 of this Regulation: to report before the condominium meeting the performance of condominium use management during the interval of two meetings:

b/ To protect the legitimate interests of condominium users in the use of the condominium: to check and urge condominium users to strictly comply with regulations on use management and legal provisions on use management of condominiums: to create conditions for the condominium operation management enterprise to properly fulfill its tasks under concluded contract:

c/ To collect and sum up users" opinions and proposals on use management so as to report them to the operation management enterprise, functional bodies, concerned organizations or individuals for consideration and solution:

d/ To sign service contracts with the condominium operation management enterprise and maintenance contracts with construction enterprises having the legal person status under Clause 2, Article 6 of this Regulation (the selection of these enterprises must be adopted at the condominium meetings); to monitor and oversee the condominium operation management and maintenance under concluded contracts for condominium operation management and maintenance; to accept, settle and liquidate contracts with condominium operation management or maintenance enterprises;

e/ To directly collect or authorize the operation management enterprise to collect funds for condominium operation management;

f/ To examine revenue and expenditure reports on condominium operation management and maintenance performed by the operation management enterprise and maintenance enterprises under concluded contracts and to report them before the condominium meetings as provided for at Point a of this Clause;

g/ To coordinate with local administration and street population groups in building up civilized lifestyle and maintaining social order and safety in the condominium under its management;

h/ Biannually to collect opinions of condominium users for use as a basis for evaluation of the quality of the operation management services provided by the condominium operation management enterprise:

i/ To perform other tasks assigned by the condominium meetings:

j/ To enjoy responsibility allowances and other reasonable considerations for its operation:

k/ Not to organize at its own will subordinate sections or to dismiss or add its members.

3. Condominium management boards shall operate on the principles of collectivism and make decisions by majority.

4. Within 15 days after its election by a condominium meeting, the management board shall register with the district-level People's Committee for recognition. Within 15.days after receiving the written registration of the condominium management board, the concerned district-level People's Committee shall issue a decision to recognize the condominium management board. The office term of a management board must not exceed three years, counting from the date the district-level People's Committee signs the recognition decision.

5. For a single-owner condominium, the management board shall preside over subsequent condominium meetings and realize the contents specified at Points b, c, g, i and j, Clause 2 of this Article.

Article 13.- Investors in condominium use management

1. For a multi-owner condominium the investor has the following rights and responsibilities:

a/ To select and sign a contract with an enterprise having the function and profession to manage the condominium operation (including enterprises of the investor; from the time the condominium is put to use until the management board is set up. To recommend a condominium operation management enterprise for the first condominium meeting to adopt;

b/ To collect fund for the maintenance of sections under common ownership in the condominium as provided for in Clause 1. Article 54 of Decree No.90/2006/ND-CP. and manage the condominium maintenance fund according to Article 20 of this Regulation;

c/ To hand over the infrastructure systems outside the condominium to local specialized management bodies according to regulations. For a condominium with mixed-use purposes, the investor shall hand over the above-mentioned facilities when the privately owned sections have been sold out to other owners;

d/ To guide the use of technical infrastructure systems and equipment in the condominium for its users;

e/ To hand over one set of construction completion drawings and dossiers related to the condominium use management with regard to the sections under common ownership prescribed in Article 8 of this Regulation to the condominium management board for preservation;

f/ To preside over the condominium meetings as provided for in Article 11 of this Regulation;

g/ To appoint a staff member to join the management boards according to Article 12 of this Regulation.

2. For a single-owner condominium, the investor shall perform the assigned tasks or fulfill its commitments with owners in condominium use management.

Article 14.- Condominium operation management enterprises

1. Condominium operation management enterprises are units professionally capable of managing the operation of condominiums, which are set up ana operate under the law on enterprises. These enterprises may directly perform one. a number or all of the jobs of managing the operation of condominiums.

2. Condominium operation management enterprises are entitled to benefits applicable to public services in the provision of services for condominiums according to law.

Section 3. CONDOMINIUM OPERATION MANAGEMENT

Article 15.- Contracts on provision of condominium operation management services and the acceptance, settlement and liquidation of service contracts

1. A condominium operation management service contract covers the following principal contents:

a/ Names, addresses and representatives of the contractual parties;

b/ The sizes and areas of sections inside and outside the condominium under common ownership, which are subject to operation management;

c/ The contents and requirements on quality, quantity, time and place for the provision of condominium operation management services;

d/ Condominium operation management service charges and charge rates:

e/ The time for performance of the condominium operation management service contract;

f/ Responsibilities and powers of the contractual parties;

g/ Other relevant agreements.

2. The duration for contract performance mentioned in Clause 1 of this Article must be at least two years. In case of extension, the extended duration must not exceed two years.

3. Cancellation and termination of condominium operation management service contracts

a/ The contract is unilaterally cancelled when either contractual party breaches the contractual agreement.

b/ The contract is terminated when it expires or the two parties agree to terminate the contract.

4. The acceptance, settlement, final settlement and liquidation of condominium operation management service contracts comply with the provisions of law.

Article 16.- Responsibilities and powers of condominium operation management enterprises in the operation of condominiums

1. To provide condominium operation management services under signed contracts, ensuring safety, set standards and regulations:

2. To sign subcontracts with other enterprises for the provision of services for condominiums (if any); to oversee the provision of condominium operation management services by subcontractors in order to ensure the performance of signed contracts;

3. To send written notices of requirements and attentions to users when they start using the condominiums: to provide guidance on the installation of equipment in privately owned sections into the common equipment systems in the condominiums;

4. To periodically check details and sections of the condominiums in order to perform the management of condominium operation:

5. To immediately prevent any risk damage to condominium users and repair any details of sections under common ownership or equipment the normal operation of the condominiums:

6. To monthly collect condominium operation management service charges according to Clause 2 Article 17 of this Regulation when so authorized by the condominium management board. For a single-owner condominium, the funding for operation management will be collected under the agreement between the owner and users;

7. To coordinate with the management board in proposing electricity and water supply bodies to stop the electricity or water supply if the condominium users fail to contribute in full and on time the funds for condominium operation management and violate the provisions of Article 23 of this Regulation without taking any remedies;

8. Once every six months to publicly report on the condominium operation management to the management board and coordinate with the latter in collecting opinions of condominium users on the provision of services for the condominiums:

9. To coordinate with the management board and population groups in maintaining security and order and handling other relevant matters in the course of managing the operation of condominiums.

Article 17.- Funding for management of operation of condominium sections under common ownership

1. The fund for management of operation of condominium sections under common ownership covers:

a/ Expenses for enterprises to operate the condominiums: to control the operation of equipment systems and workers providing services for the condominiums: expenses for energy, fuel, materials, regular maintenance and other expenses to ensure the operation of machinery and equipment (such as elevators, pumps and other ownership in the condominium:

b/ Responsibility allowances for management board members and other reasonable expenses for the operation of the management board.

Charges for keeping automobiles, bicycles and motorbikes shall be separately accounted and covered by the condominium operation management fund.

2. Raising of funds for management of condominium sections under common ownership

a/ For a single-owner condominium, the operation management fund shall be ensured by the owner, unless otherwise agreed upon by the owner and users. For a multi-owner condominium, the operation management fund shall be raised from the owners on the principle of full coverage of expenses. Fund contribution levels shall be calculated on a monthly basis and apportioned to the area under private ownership of each owner, and collected from condominium users once every month. Provincial/municipal People's Committees shall base themselves on the practical situation of their localities to prescribe the maximum collection level (the ceiling price) of condominium operation management fund in the localities. Condominium project investors shall base themselves on the maximum collection level set by provincial/ municipal People's Committees to calculate service charge rates right at the time of project formulation.

b/ For condominium projects involving the provision of added services (such as sauna, swimming pool or other added services) other than the services specified in Clause 1, Article 5 of this Regulation, for which the investor has agreed in writing on service charge rates with the buyers upon signing the house sale and purchase contracts, the collection levels under such agreement shall be applied.

c/ Owners shall contribute condominium operation management funds under this Clause, including contributions for the areas under private ownership which have not yet been sold by investors or used by owners.

3. Fuel, energy, water and other expenses stated in separate contracts with condominium users will be paid directly by users to the service providers. In case of using water and electricity without separate contracts signed with households, the users shall pay for the volumes consumed plus the loss.

Section 4. CONDOMINIUM MAINTENANCE

Article 18.- Condominium maintenance principles

1. Condominium owners shall maintain sections under their private ownership. In case users who are not owners wish to maintain the sections under private ownership, they shall obtain written agreement of the owners. The owners shall fully contribute funds for maintenance of sections under common ownership according to regulations.

2. The maintenance of common-ownership sections, technical infrastructure systems and equipment under common use shall be undertaken by condominium operation management enterprises or organizations having the legal person status in carrying out construction activities as provided for in Clause 2, Article 6 of this Regulation, which must comply with instructions of designers and manufacturers and with the process and regulations promulgated by competent state bodies.

3. Condominium maintenance must ensure safety for people and their property environmental sanitation, beautiful view and architectures of condominiums.

Article 19.- Contributed fund levels for maintenance of condominium sections under common ownership are provided as follows:

1. For condominiums sold from the effective date of the Housing Law. the contributed fund levels for the maintenance of condominium sections under common ownership comply with the provisions of Clause 1. Article 54 of Decree No. 90/2006/ND-CP. For condominiums sold before the effective date of the Housing Law. the contributed fund levels comply with the provisions of Clause 2, Article 54 of Decree No. 90/2006/ND-CP.

2. In case the collected funds for the maintenance of sections under common ownership are insufficient, contributions may be mobilized from owners corresponding to their respective privately owned areas in the condominium. The above-said funds shall be used only for condominium maintenance, not for condominium operation management and other purposes.

3. In case of purchase with deferred or installment payment, buyers shall contribute fund for the maintenance of condominium sections under common ownership as provided for in Clauses 1 and 2 of this Article.

Article 20.- Management of funds for maintenance of condominium sections under common ownership

1. For the maintenance fund prescribed in Clause 1, Article 19 of this Regulation, investors shall open a deposit account for every condominium at a commercial bank with an interest rate not lower than the demand savings interest rate as from the time the condominium is put to use and hand over that account to the elected management board. The management board snail manage the maintenance fund in the form of account co-holders (including its head and a member appointed by the management board) to manage and use this fund according to the law on finance.

Interest amounts arising from the bank deposit in each period must be added to the maintenance fund.

2. The acceptance, payment, settlement, and liquidation of maintenance contracts comply with the law on construction and civil contracts.

3. Units managing funds for the maintenance of condominium sections under common ownership shall open books to monitor fund revenues and expenditures and coordinate in inspecting the settlement and management of revenues and expenditures according to the law on finance: and shall publicize fund revenues and expenditures for condominium maintenance to condominium users at annual condominium meetings.

Section 5. RIGHTS AND OBLIGATIONS OF OWNERS AND USERS IN THE USE OF CONDOMINIUMS; ACTS PROHIBITED IN THE USE OF CONDOMINIUMS

Article 21.- Rights and obligations of owners in the use of condominiums

1. For multi-owner condominiums

a/ To use the areas under common ownership according to this Regulation:

b/ To request responsible people to supply information and publicize contents related to the use management of condominium;

c/ To strictly abide by decisions of the condominium meetings:

d/ To maintain sections under their private ownership; to contribute in full and on time funds for the management, operation and maintenance of sections under common ownership ana other amounts prescribed by this Regulation:

e/To create favorable conditions for responsible people to operate and maintain the condominium sections under common ownership:

f/ To observe the regulations and rules on condominium use management: to strictly observe the rules on fire and explosion prevention and fighting, public hygiene, security and order; to promptly detect and report on violations in condominiums;

g/To restore to the original state or compensate for damage caused to common-ownership sections or users' privately owned sections of other condominiums to which they have caused damage.

2. For single-owner condominiums, the owners shall implement the provisions of Article 68 of the Housing Law

Article 22.- Rights and obligations of condominium users other than owners

1. To lawfully use their privately owned sections and observe the provisions of Points a and b. Clause 1, Article 21 of this Regulation;

2. To request owners to supply the regulation on use management and information relating to condominium use management:

3. To attend condominium meetings; to contribute funds for the operation of condominiums, if so agreed upon with owners;

4. To strictly abide by decisions of condominium meetings:

5. To fulfill the obligations specified at Points e. f and g. Clause 1. Article 2! of this Regulation.

Article 23.- Acts prohibited in the use of condominiums

1. Building annexes to occupying land areas and/or spaces of. or damaging property in. sections under common ownership or common use in any form: chiseling and destroying, transforming, removing or altering the force-bearing structures, technical infrastructures, equipment and facilities under common use, on external architectures of condominiums:

2. Dividing or converting sections under common ownership or common use in contravention of regulations;

3. Causing noises beyond prescribed limit; affecting the condominium order and security;

4. Discharging garbage, wastewater, waste gases, hazardous substances not at prescribed places: causing water leakage or environmental pollution: raising animals or poultry in sections under common ownership or common use;

5. Making advertisements, inscriptions or drawings against regulations or committing other acts banned by law; using materials or colors on the outside of apartments or condominiums in contravention of regulations: altering the structures and designs of sections under private ownership or private use (building partitions on the floor, removing equipment and technical systems affixed to sections under common ownership, chiseling or breaking apartments, building annexes in any form);

6. Using or letting other persons use sections under private ownership or private use against the prescribed purposes;

7. Rearing animals or poultry in sections under private ownership or private use. affecting the order and beautiful view and living environment of other households and public areas (if raising pets, legal provisions must be strictly observed):

8. Doing businesses or trading in commodities which easily cause fires or explosions (soldering, gas supply, trading in explosives and other dangerous occupations and commodities);

9. Providing services which cause much noise, environmental pollution (karaoke bar. dance hall, motorbike and car repairing, slaughter houses and other polluting service activities);

10. Using condominium operation manage-ment and condominium maintenance funds for improper purposes.

Article 24.- The prohibited acts specified in Article 23 of this Regulation must be notified directly and publicly by the management boards or investors or condominium owners to relevant organizations and individuals for information and avoidance.

Chapter III

DISPUTE SETTLEMENT AND HANDLING OF VIOLATIONS

Article 25.- Dispute settlement

1. Disputes related to ownership in condominiums shall be settled by courts.

2. Disputes over use rights in condominiums shall be settled on the basis of conciliation, but the provisions of this Regulation must be observed. If conciliation fails, disputes shall be transferred to courts for settlement.

3. Disputes over civil contracts in the course of condominium use management under provisions of this Regulation shall be settled according to the law on civil contracts.

Article 26.- Handling of violations

1. Acts of violating this Regulation shall be handled under the law on the handling of violations in the use management of houses.

2. Those who abuse their positions and powers to commit acts against the provisions on use management of condominiums shall, depending on the severity of their violations, be administratively handled or examined for penal liability. If causing material damage, they shall pay compensation therefor.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 27.- Responsibilities of provincial-level People's Committees and housing management bodies

1. Provincial-level People's Committees shall;

a/ Promulgate regulations related to the use management of condominiums in their respective localities according to this Regulation to suit the practical local situation;

b/ Supply funds for the maintenance of common-ownership sections as prescribed for condominiums sold before the effective date of the Housing Law with a view to maintaining the quality, architecture and beautiful look of condominiums in their localities;

c/ Set the maximum collection level (ceiling price) of funds for condominium operation management under Clause 2, .Article T7 of this Regulation;

d/ Direct relevant functional bodies in the acceptance of infrastructure systems in housing projects or new urban centers according to the contents approved by competent authorities;

e/ Consider and assign responsibilities for administrative management of condominiums in each area;

f/ Promulgate incentive mechanisms for condominium operation management enterprises in order to meet the demand for condominium operation management and service provision in. the localities: annually review and assess the use management of condominiums in localities and report the situation to the Ministry of Construction;

g/ Commend good practices and handle violations according to their competence.

2. Provincial-level housing management bodies shall advise provincial-level People's Committees on performing the function of state management of condominiums in the localities.

Article 28.- Responsibilities of district-level People's Committees

1. To submit to provincial-level People's Committees for approval the assignment of responsibilities for administrative management of areas where condominiums are located (in case of adjustment of administrative boundaries or management of administrative boundaries of commune-level administrative units);

2. To issue decisions recognizing the results of election of condominium management boards as provided for in Clause 4. Article 12 of this Regulation;

3. To inspect the use management of condominiums; handle violations according to their competence or report them to provincial-level People's Committees:

4. To commend good practices and handle violations according to their competence.

Article 29.- Responsibilities of People's Committees of communes, wards or townships

1. To propagate and mobilize organizations and individuals to thoroughly study and observe the provisions of this Regulation and law on use management of condominiums:

2. To monitor, examine and settle problems arising in the use management of condominiums according to their competence or report them to district-level People's Committees for consideration and solution;

3. To coordinate with investors or units currently managing the condominiums or the management boards in settling matters related to the maintenance and operation management of condominiums in their localities;

4. To create conditions for condominium operation management enterprises to provide services for condominiums in their localities.

5. To commend good practices and handle violations according to competence.

Article 30.- In case condominiums are currently applying forms of operation management other than those prescribed in this Regulation but still ensure efficient management, they may continue such forms of management, but must work out plans to shift to the condominium use management model under the principles set in this Regulation within no more than three years after the effective date of this Regulation.

For condominiums with separate premises and technical infrastructure for common use, the principles set in this Regulation can be applied to the management thereof.

Article 31.- The House and Real Estate Market Management Department shall assume the prime responsibility for. and coordinate with relevant functional bodies in. guiding and organizing the implementation of this Regulation: sum up opinions of relevant bodies on arising problems, study and propose proper amendments and supplements to this Regulation: and coordinate with local functional bodies and relevant organizations and individuals in organizing trainings on use management of condominiums nationwide. If meeting with difficulties or problems in the course of implementation, it should report them in time to the Ministry of Construction for consideration and revision as appropriate.