Formation

With urbanization trend, more and more people prefer living in condominiums. However, a large number of occupants shall result in many risks related to security, fire safety, ownership disputes on common parts, etc. Therefore, a Management Board is established for safety assurance, effective management and for solving arising problems in apartment communities as well.

The State issued policies specifying and guiding developers and residents to form the Board of Management for an efficient and transparent management.

According to the Housing Law No.51/2001/QH10 of National Assembly dated December 25, 2001, clearly stated as follows:

Article 71. Organization of use of condominiums

1. For each condominium, a management board must be formed to act as representative of owners and users in protecting their rights and legitimate interests in the course of using the condominium.

Within twelve months after condominiums are put to use, developers shall have to organize meetings of condominium owners and users (hereinafter called the condominium meetings) to elect management boards. Developers shall have to prepare relevant contents for consideration and decision at the condominium meetings.

Pending the establishment of a management board, developers shall have to perform the tasks of the management board.

2. A condominium management board shall comprise representatives of owners and users of such condominium.

3. The membership of a management board shall be decided by the condominium meeting. The term of a management board shall be three years at most. The management boards shall operate on the principle of collectiveness and decision by majority.

Article 72.- Rights and responsibilities of management boards

The condominium management board shall have the following rights and responsibilities:

1. To elaborate internal rules on the use of the condominium, suitable to the specific conditions of the condominium and in accordance with the provisions of law and submit them to the condominium meetings for consideration and adoption;

2. To select and sign contracts with condominium operation-managing enterprises; to cancel contracts in cases where such enterprises fail to comply with their commitments; to supervise the operations of condominium-managing enterprises according to the contents of signed contracts;

3. To gather and sum up users' opinions and proposals relating to the condominium management and use and the condominium service provision, and work with functional bodies, relevant organizations and individuals in consideration and settlement thereof;

4. To inspect and supervise the use, warranty and maintenance of the condominium according to regulations;

5. To coordinate with local administration, population groups in building up civilized lifestyle, maintaining social order and safety in the condominium assigned to them for management;

6. To collect payable amounts from house owners and users as well as charges for the use of sections under common ownership of the condominium (if any);

7. To make payments to condominium operation-managing enterprises under signed contracts and pay responsibility allowances to members of the management boards and other expenses according to regulations of the condominium meetings;

8. To perform other tasks assigned by condominium meetings.

The central agency performing the state management of houses shall issue regulations on condominium management, guide and inspect the management and use of condominiums throughout the country.

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