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Ministry issues provisions on apartment building

Update: July, 23/2014 - 08:38

The Ministry of Construction issued Circular No 03/2014/TT-BXD (February 20, 2014) and Circular No 05/2014/TT-BXD (May 9, 2014) on calculation of the area of an apartment and contributions to the fund for operational management of the commonly owned area of an apartment building based on the area of the apartment.

Calculation of use area of an apartment

The use area of an apartment is calculated based on net measurements and must be recorded in the certificate issued to apartment purchasers. The use area of an apartment includes the area of walls partitioning rooms within the apartment, and the area of balcony and loggia attached to the apartment, but does not include the boundary walls of the apartment building, the walls dividing the various apartments, the areas of the floor column and the technical box inside the apartment.

The area of balcony is calculated in the entire floor area. If the balcony contains an area of common wall, the calculation is made from the inner edge of the common wall. Once handing over an apartment, the parties must specifically record the use area of the apartment that is actually handed over and the area recorded in the signed apartment sale and purchase contract ("Contract") in the minutes of apartment handover or in the Contract appendix. The minute of apartment handover or the Contract appendix is an integral part of the Contract.

Calculation of fund for operational management of an apartment building:

Provincial People's Committees regulate a framework of general expenses for the operational management of apartment buildings within their locality. The framework of general expenses is the basis for calculating and formulating funding for operational management. If the apartment building does not yet have a management committee, the investors in the apartment building can calculate and collect the same from the owner and users. If the apartment building has the management committee already, the apartment building operational management enterprise calculates applicable fees and they are reported by the management committee to the Apartment Building General Meeting for passing.

The contribution to the fund for operational management of an apartment building is calculated on a monthly basis, and allocated according to the net area of the apartment and other parts of the building not the apartment (including the garage) under private ownership of each apartment owner.

Who funds the operational management of an apartment building?

If the apartment building is owned by a single person, he or she must pay the fund for operational management of the apartment building, unless the owner and users have a different agreement.

If the apartment building is owned by multiple owners, the owners and the users must pay the fund on the principle of ensuring a sufficient budget for the operational management of the apartment building.

Apartment sale and purchase contract before April 8, 2014

Regarding the Contract signed before the effective date of MOC Circular No 03/2014/TT-BXD (April 8, 2014), in which the parties agreed to calculate the use area of apartment based on measurements made from the centre of the thickness of walls, the contribution to the fund for the operational management of the apartment building is allocated based on the net area of the apartment beginning the effective date of Circular No 05/2014/TT-BXD (June 25, 2014).

MAI COUNSEL

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