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Arbitrarily repairing apartment for business in Vietnam

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Nowadays, many families live in an old apartment buildings with deteriorating construction. So, they want to repair and renew their apartment to perform business. However, they do not know whether the law allows them to do it or not. Therefore, in this article, LSX legal firm will provide information regarding: “Arbitrarily repairing apartment for business in Vietnam”

  • Law on Housing 2014
  • Law on Construction 2014
  • Decree 99/2015/ND-CP
  • Decree 16/2022/ND-CP

Can you use apartment as a business location?

Clause 3, Article 3 of the Law on Housing defines an apartment building as follows:

Apartment building means any multi-storey building which has multiple apartments, public stairs, hall ways, private areas, common areas and common infrastructural works for organizations, households or individuals, including apartment buildings for residential use and mixed-use buildings for both business and residential purposes.

According to this regulation, apartments have two types of use purposes: Apartments built for living and apartments built for mixed use (for residential and business). Therefore, not every apartment building only used for living without allowing business.

  • The apartment is built for the residential purpose: The design and architecture of the apartment building are only used for living, not for business purposes.
  • The apartment is built for mixed use: This apartment can be used for living or for other purposes such as offices, companies, businesses…

That is, you have the right to use the apartment building as a business location, but you must use it for the approved purpose when the investor allowed to build the apartment.

Thus, people can use the apartment as a business location, as long as the investor has the approval to build the apartment building for mixed-use purposes.

Regulations on repairing apartment for business in Vietnam

According to articles 86 and 87 of the Law on Housing 2014, house owners have the right to renovate their houses. However, the house renovation must comply with the provisions of this Law and the provisions of the law on construction. The renovation of high-rise apartment buildings must have designs approved by competent agencies.

Article 6 of the Law on Housing 2014 stipulates the prohibited acts including the illegal appropriation of housing areas; encroaching upon the space and facilities under common areas or ownership of other owners in any shape or form; arbitrarily changing the bearing structure or changing the design of private areas in the apartment building.

Pursuant to the 2014 Law on Construction, the owner is allowed to repair and renovate the apartment building without having to apply for a construction permit in the following cases: 

  • Works undergoing repair, renovation, or installation of interior equipment which does not alter their force-bearing structure and utilities and affect the environment and safety of these works;
  • Works undergoing repair and renovation to alter their external architecture not facing roads in urban centers subject to architecture management requirements;

In conclusion, if the apartment building owners want to repair the house with changes in the bearing structure or changes in the design of the private part in the apartment building that exempted from construction permit; then the owner must apply for a construction permit in case of repair or renovation.

Sanction for arbitrarily repairing apartment for business in Vietnam

Clause 5, Article 35 of Decree 99/2015/ND-CP prohibits the following acts:
Repurpose the shared area of the apartment building without permission; repurpose the non-residential area in the apartment building against the design approved by a competent authority.
At the same time, Clause 11 Article 6 of the Law on Housing 2014 also prohibits the following acts:
Using the apartments not for residential purposes; using the area for business purposes in the apartment building under an approved project for trading flammable materials, explosives, providing services causing environmental pollution, noise, or negative effects on the lives of households and individuals in the apartment building as prescribed in regulations of the Government.
Accordingly, the act of arbitrarily using the apartment for residential purposes to do business violates the law and subjects to administrative sanctions according to the levels specified in Decree 16/ 2022/ND-CP.
Clauses 1 and 2, Article 70 of Decree 16/2022/ND-CP stipulating penalties for administrative violations in construction and regulations on violations of regulations on management and use of apartment buildings for house owners:

Article 70. Violations against regulations on management and use of apartment buildings for apartment building users

  1. A fine of between VND 20,000,000 and 40,000,000 shall impose for one of the following acts:
    a) Causing seepage and leakage of apartment buildings that are not under their ownership, management, and use;
    b) Using colors to paint or decorate the exterior of the apartment or apartment building in contravention of regulations on design and architecture;
    c) Trading in incendiary dangerous goods, motor vehicle repair services, or cattle slaughtering services;
    d) Running a restaurant, karaoke, or bar business in the business area of the apartment building but failing to meet the requirements for sound insulation, fire prevention, and fighting according to regulations;
    dd) Doing business in the area not used for the business of the apartment building as prescribed;
    e) Using the apartment for non-residential purposes.
  2. A fine ranging from VND 60,000,000 to VND 80,000,000 shall be imposed for one of the following acts:
    a) Illegally occupying residential area; encroaching on the surrounding space, encroaching on jointly owned parts, or encroaching on the private parts of other owners in any form;
    b) Arbitrarily changing the load-bearing structure or changing the design of the private part in the apartment building;
    c) Using the area and equipment under the ownership and common use for private use;
    d) Improperly using the area under common ownership or the service area in the mixed-use apartment building.

LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:

  • Legal advice related to new regulations;
  • Representing in drafting and editing documents;
  • We commit the papers to be valid, and legal for use in all cases;
  • Represent to submit documents, receive results, and hand them over to customers.

With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.

Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.

Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.

After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.

Entities eligible for the homeownership in Vietnam?

Vietnamese organizations, households or individuals (hereinafter referred to as Vietnamese entities).
Overseas Vietnamese.
Foreign organizations and individuals (hereinafter referred to as foreign entities) prescribed in Clause 1 Article 159 of the Law on Housing 2014.

Entities eligible for the homeownership recognition with legitimate housing through transactions?

Vietnamese entities who invest in housing construction, purchase, enter into lease purchase agreements, receive gifts, receive inheritance, receive capital contribution, exchange houses, or make other transactions prescribed in regulations of law .
Overseas Vietnamese who enter into agreements on commercial housing purchase, lease purchase with enterprises or cooperatives conducting real estate trading (hereinafter referred to as real estate enterprise); agreements on housing purchase, gifting, exchange, inheritance with households or individuals; agreements on residential land transfer in the project on commercial housing construction which is permitted to divide the piece of land into smaller lots/plots for sales as prescribed.
Foreign entities who enter into agreements as prescribed in Clause 2 Article 159 of the Law on Housing 2014.

Obligations of homeowners and occupiers as Vietnamese entities and oversea Vietnamese?

Firstly, use the house for proper purposes as prescribed; compile and store documents on their house;
Secondly, comply with regulations on fire safety, hygiene, environment, social safety and order as prescribed;
Thirdly, purchase insurance against fire pertaining to the house subject to insurance against fire as prescribed in law on fire safety and law on insurance business;
Fourthly, enable related entities and competent persons to carry out the inspection, observation, or maintenance of equipment systems, technical infrastructure, or common areas;
Fulfill financial obligations to the State when their homeownership is recognized, their transactions are conducted and over the period in which the house is used as prescribed.

Contact LSX

Finally, hope this article is useful for you to answer the question about “Arbitrarily repairing apartment for business in Vietnam”. If you need any further information, please contact  LSX Law firm+84846175333 or Email: [email protected]

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