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Official Gazette

Monday, September 26, 2022

Management of condo maintenance funds to be tightened

Updated: 14:01’ - 28/09/2020
Apartment purchasers and hire-purchasers would pay expenses for maintenance of sections under common ownership in condominiums into an account opened by their housing project owners at a credit institution lawfully operating in Vietnam, instead of making direct payment to project owners as at present.

Such proposal is put forward by the Ministry of Construction (MOC) with a view to preventing housing project owners from arbitrarily using condo maintenance funds, and included in a draft decree revising Decree 99 of 2015.

Vinhomes Royal City apartment complex in Hanoi__Photo: Internet

The draft says those who purchase or hire-purchase an apartment at a condo project would have to pay an amount equaling 2 percent of the pre-tax value of the apartment into an account opened by the project owner. Such payment must be made before the project owner hands over apartments to purchasers or hire-purchasers. In case the project owner hands over apartments to purchasers and hire-purchasers without collecting maintenance funds, the project owner would be required to pay these funds. The account information such as account number, account name, and name of the credit institution where the account is opened would be clearly written in the apartment purchase and sale or hire-purchase contract.

The project owner that hands over apartments to purchasers or hire-purchasers without collecting funds for maintenance of sections under common ownership, would have to pay such amounts.

The draft also provides tough measures to handle project owners that fail to transfer maintenance funds to condo management boards.

Accordingly, within three days after receiving an enforcement decision issued by provincial-level People’s Committees, credit institutions that are managing condo maintenance funds or other accounts of project owners would have to transfer such funds into accounts opened by condo management boards for management and use.- (VLLF)


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