One of the most common disputes is the one arising between developers and apartment residents. In 2017, Nha Mo Co., the developer of Dreamhome Residence in Go Vap District, handed over apartments to buyers. Despite nearly 500 households residing in the complex, residents have been enduring a prolonged wait for their property certificates and facing difficulties in property transactions. Despite numerous appeals to authorities, their grievances remain unresolved.
Furthermore, the developer has failed to transfer the maintenance fund to the building management board, resulting in deferred repairs and maintenance of deteriorating infrastructure and malfunctioning elevators. Truong Dinh, a dweller in this apartment complex, expressed her frustration, stating, “We live in apartments we’ve purchased, but it feels like we’re renting. We have repeatedly petitioned the local authorities at different levels in HCMC but have yet to receive a satisfactory resolution.”
Meanwhile, Head Nguyen Huy Hoang of the Management Board of 4S Linh Dong Apartment Complex in Thu Duc City reported that a year ago, the HCMC Department of Natural Resources and Environment had planned to issue property certificates for over 81,000 apartments in hundreds of projects across the city, yet this complex was not included in the list.
Since 2022, the Management Board of 4S Linh Dong Apartment Complex has sent numerous documents to Hiep Phu Land JSC., the developer, requesting the transfer of the maintenance fund for common areas as stipulated by law, amounting to over VND30 billion (US$1.22 million). In April 2024, the Chairman of the People's Committee of Thu Duc City issued Decision 4638/QD-XPHC imposing an administrative fine of VND180 million ($7,300) on Hiep Phu Land JSC. and mandating the transfer of the maintenance fund within 10 days. However, the developer has remained defiant.
Another type of dispute occurs between residents and building management boards. In Phu Hoang Anh Building in Nha Be District, an unusual situation arose when residents who purchased apartments numbered 2.1, 2.5, and 2.6 on the second floor, block D, were issued property certificates but were prevented from occupying their units by the building management board.
The board claimed that these units were not approved in the building's design. For over a decade, these homeowners have been unable to move into their apartments as the management unit has removed the floor buttons from the elevators and locked the stairwells upon receiving the building from the developer.
Statistics from the HCMC Department of Construction reveal that 41 apartment complexes in the city have held resident meetings but have yet to elect a management board. Additionally, 227 apartment complexes have not had their maintenance funds transferred, including 43 complexes where developers have intentionally refused to transfer the funds, delayed the transfer, transferred incomplete amounts, or deliberately avoided or misappropriated the funds.
To address these disputes, HCMC has implemented various solutions for specific cases. For instance, regarding Dreamhome Residence, Deputy Director Le Tran Kien of the municipal Construction Department recently issued a document to the People's Committee of Go Vap District, stating that based on Document No. 4841/VP-DT dated June 22, 2022 conveying the directive of the Chairman of the HCMC People's Committee, the Construction Department forwarded the petition of Dreamhome Residence residents to the People's Committee of Go Vap District for prompt and complete enforcement of the decisions issued by the municipal People's Committee.
If there are signs of criminal violations in the management and use of maintenance funds for common areas, the People's Committee of Go Vap District is requested to transfer information and documents to the police for handling.
Legal experts believe that the 2023 Housing Law, which came into effect on August 1, 2024, along with its accompanying decrees and circulars, has introduced significant changes to protect the rights of residents. Nonetheless, compliance with the law remains a challenge.
Lawyer Dao Xuan Son of the HCMC Bar Association stated that the 2023 Housing Law clarifies the subjects and timelines of projects, construction quality, and property ownership.
Notably, in the area of project management and operation, the law addresses common disputes between customers and management units and provides clearer definitions of the rights and responsibilities of all parties involved. The law stipulates that all revenue generated from the exploitation of common areas, such as advertising in lobbies, elevators, or parking lots, must be transferred to the maintenance fund. This change will impact the revenue of management funds, requiring management units to balance their budgets and ensure the stability of operations without compromising the interests of residents.
Additionally, the new regulations require the disclosure of plans for training management board members on the expertise and skills required for managing apartment complexes. Management board members must undergo training and certification to ensure they possess the necessary knowledge and skills.
The law requires developers to disclose the legal documentation of the project to buyers, including completion acceptance certificates, approval notices from construction authorities, and floor plans of parking areas. While this regulation may impact the project implementation timeline of developers and the supply of apartments to the market, it will ensure transparency, safety, and reduce risks for homebuyers. This, in turn, will mitigate future disputes.
In response to the ongoing disputes and conflicts in condominiums, Vice Chairman Bui Xuan Cuong of the HCMC People's Committee has directed relevant departments, agencies, and the Thu Duc City People's Committees to strictly implement the city's directives on enhancing the effectiveness of condominium management and use.
Additionally, the city will organize training sessions on handling and penalizing administrative violations related to condominium management for local authorities and officials responsible for condominium management.
The city’s Department of Construction has been tasked with researching and publicly posting information about developers and management units with numerous violations in condominium management, operation, and use that have led to disputes and grievances among residents. Decisions on administrative violations issued by the Department's Inspectorate will be made public on the department's electronic portal for public awareness.
Necessary decrees and circulars have been issued by relevant authorities to implement the 2023 Housing Law. These regulations provide comprehensive provisions for regulating all activities related to condominium management and use, including:
- principles of condominium management and use;
- procedures for organizing condominium meetings, membership, and voting;
- qualifications and standards for management board members;
- election, recognition, and replacement of management board members;
- operating regulations and financial regulations of the management board;
- condominium management and operation units;
- rights and responsibilities of organizations and individuals (developers, management units, owners, and users of condominiums) in condominium management and use;
- dispute resolution, violation handling, and the responsibilities of local authorities in condominium management and use.
Regarding the proposal of HCMC to consider drafting a law on condominium management and use, the Ministry of Construction has acknowledged the request and will report to the competent authority at an appropriate time.
