1. Dispute about common ownership – separate area of the apartment building
According to statistics of the Vietnam Real Estate Association (Real Estate) in 2022:
Hanoi has 129/845 buildings and clusters of buildings with disputes and lawsuits;
Ho Chi Minh City has 105/935 buildings and clusters of buildings with disputes and lawsuits.
For example, recently, at an apartment building in Hanoi, residents noticed that the management unit was not clear in the revenue and expenditure of parking services. Moreover, fees for basement maintenance, management and maintenance of 2 basements are all deducted from residents’ money. The Management Board and residents then agreed to stop the contract with the building management unit. At the same time, residents also ask the investor to provide proof of basement ownership. The management unit believes that the basement and the first floor office are the private property of the investor. Residents confirmed, according to the apartment purchase and sale contract, this area is jointly owned. This led to a dispute between the two parties.
2. Regulations on common ownership – the current area alone cannot resolve the dispute
The current Law on Housing stipulates on shared and private ownership of apartment buildings as follows:
– The privately owned part in the apartment building is:
+ The area in the apartment or other area is recognized as the private property of the owner of the apartment building;
+ Equipment used exclusively in the apartment or other areas of the apartment owner.
– Shared ownership of the apartment building is:
+ The remaining area of the apartment building, apart from the part owned by the owner of the apartment building;
+ Common equipment for apartment buildings.
(Clause 15, 16, Article 3, Housing Law 2014)
Specifically, private ownership in the apartment building includes:
+ The area inside the apartment; including balcony, attached loggia;
+ Other areas in the apartment building are recognized as private ownership;
+ System of technical equipment for private use attached to the apartment; Or attached to another area of private ownership.
– Shared ownership of the apartment building includes:
+ The remaining area of the apartment building in addition to the area under private ownership;
+ Community house of the apartment building;
+ Space and system of load-bearing structures, technical equipment shared in the apartment building;
+ Technical infrastructure system outside but connected to that apartment building. This provision does not apply to the service system for the community… Or subject to handing over to the State, or the investor for management;
+ Public works in the apartment building area but not in the category of investment and construction for business… Or must be handed over to the State.
(Article 100, Housing Law 2014)
– Particularly for parking spaces, the Law on Housing provides for ownership rights as follows:
+ Parking space for bicycles, vehicles for the disabled, two-wheeled motor vehicles, and three-wheeled motor vehicles for owners and users of the apartment building: It is under common ownership and common use;
+ Car parking space for apartment owners: Buyers, renters and buyers of apartments or other areas decide to buy or rent. In case of not buying or renting a parking space, it is under the management of the investors.
(Clause 1, Article 101, Housing Law 2014)
3. Practically operating the parking area of the apartment
In fact, in most apartment buildings, the revenue from the motorbike parking area (shared ownership) will be returned to the building operating fund. How to plan this area, how much is the area of common ownership to determine the specific revenue per vehicle is still unclear. This gives rise to an unresolved debate. Besides, the fact that the Law on Housing 2014 does not determine which part of the car park belongs to… is the cause for most of the disputes in buildings and apartment buildings.
(Refer to Investment Newspaper dated 19/6/2023)
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
