Failure to transfer funds for condominium maintenance may result in a fine of up to VND 300 million

This Decree defines administrative violations, completed administrative violations, ongoing administrative violations, forms of penalties, penalty amounts, and measures to remedy the consequences for each administrative violation, as well as the subjects subject to penalties, the authority to impose penalties, specific fine amounts by position, the authority to issue violation reports, and the enforcement of administrative penalties in the fields of construction, management of technical infrastructure projects, housing management and development, and real estate business operations.

For construction projects built on land used for purposes other than those designated in the land use plan, administrative penalties shall be imposed in accordance with the Decree regulating administrative penalties in the field of land management. (*)

For construction projects or project components that violate both land and construction laws and do not fall under the circumstances specified in (*), they shall be handled in accordance with the provisions of this Decree and the Decree regulating administrative penalties in the field of land management.

A fine of up to VND 200 million shall be imposed for the act of selling or leasing parking spaces for automobiles in apartment buildings in violation of regulations

Regarding penalties for violations of the developer’s regulations on the management and use of apartment buildings and maintenance funds, Article 59 of the Decree stipulates as follows:

1. A fine ranging from VND 80,000,000 to VND 100,000,000 shall be imposed for any of the following acts:

a) Failing to open a payment account or opening a payment account to manage maintenance funds for the common areas of the apartment building in violation of regulations;

b) Failing to submit, or delaying the submission of, a written request to the commune-level People’s Committee to organize the first condominium owners’ meeting in cases where the number of participants does not meet the prescribed requirements;

c) Failing to provide a written notice or providing an incomplete notice to the provincial-level housing management agency where the project is located regarding the account name, account number, name of the financial institution where the account was opened, branch of the foreign bank where the account was opened, and the term of the maintenance fund deposit;

d) Failure to prepare a maintenance plan or preparation of a maintenance plan that does not comply with regulations;

e) Failing to perform or inadequately performing maintenance, management, operation, and exploitation responsibilities in accordance with the approved project scope, as prescribed, during the period prior to the handover of the technical infrastructure of the area where the condominium is located, as prescribed;

e) Failing to disclose documentation in accordance with housing laws to buyers or lease-purchase tenants prior to the handover of the condominium unit as prescribed, or handing over the unit without preparing a handover report accompanied by the relevant legal documents pertaining to the sale or lease-purchase of the housing unit;

2. A fine ranging from VND VND 160,000,000 to VND VND 200,000,000 shall be imposed for any of the following acts:

a) Determining the maintenance expenses for the common areas of a condominium in violation of regulations;

b) Failing to record or incorrectly recording information regarding the payment account for managing maintenance funds for the common areas of a condominium as required in the contract for the sale, lease-purchase of a residential unit, or other areas of the condominium;

c) Failing to request the credit institution or foreign bank branch managing the maintenance fund account to transfer the funds and any interest accrued from the maintenance fund to the maintenance fund management account established by the condominium management board;

d) Selling or renting out parking spaces for cars within the condominium in violation of regulations.

3. A fine ranging from VND 200,000,000 to VND 260,000,000 shall be imposed for any of the following acts:

a) Failing to allocate space or allocating insufficient space for a community activity center or community activity areas as prescribed;

b) Improperly managing or using funds for management and operation;

c) Failing to organize the first condominium owners’ meeting as prescribed;

d) Failing to prepare, or preparing incorrectly or incompletely, the settlement documents for maintenance funds for the common areas of the condominium as prescribed.

A fine of up to VND 300 million shall be imposed for the act of failing to transfer maintenance funds to the Management Board

4. A fine ranging from VND 260,000,000 to VND 300,000,000 shall be imposed for any of the following acts:

a) Arbitrarily changing the function or purpose of use of the common areas or shared facilities of a condominium, or using a condominium unit for purposes other than residential use;

b) Unauthorized use of common-ownership or common-use areas and facilities in violation of regulations;

c) Changing the intended use of service areas within a mixed-use apartment building without authorization from the competent state agency;

d) Incorrectly determining the area of an apartment or other areas within the condominium that are privately owned;

e) Failing to pay or paying insufficient maintenance fees for the common areas of the apartment building, as prescribed, for apartment areas or other areas retained by the developer—whether unsold, not yet sold, or not yet leased—as of the date the apartment building is handed over for use;

e) Failing to transfer, transferring incompletely, or transferring the apartment building documentation to the Apartment Building Management Board by the prescribed deadline;

g) Failing to transfer, transferring late, or failing to fully transfer the maintenance funds and interest earned on the maintenance funds for the common areas of the condominium in accordance with regulations;

h) Managing or using maintenance funds in violation of regulations.

5. Remedial Measures:

a) Require the opening of a payment account to manage the maintenance funds for the common areas of the condominium in accordance with regulations for the conduct specified in point a of paragraph 1 of this Article;

b) Require the submission of a written request to the commune-level People’s Committee to organize a condominium meeting in accordance with regulations for the violation specified in point b of paragraph 1 of this Article;

c) Require the submission of a written notice providing full information regarding the opening of a bank account for maintenance funds in accordance with regulations to the provincial housing management agency for the act specified in Point c, Paragraph 1 of this Article;

d) Require the preparation of a maintenance plan in accordance with regulations for the acts specified in subparagraph d of paragraph 1 of this Article;

e) Require the fulfillment of maintenance, management, operation, and utilization responsibilities in accordance with regulations in cases where the project has not yet been handed over, for the acts specified in Point e, Paragraph 1 of this Article;

e) Require the disclosure of documentation in accordance with housing laws to buyers or lease-purchase tenants of apartments prior to the handover of the condominium unit as prescribed, or require the preparation of a handover report accompanied by relevant legal documents pertaining to the sale or lease-purchase of the housing unit, for the acts specified in point e, paragraph 1 of this Article;

g) Require the recalculation of maintenance fees for the common areas of the condominium in accordance with regulations for the acts specified in Point a, Paragraph 2 of this Article;

h) Require the provision of complete information regarding the payment account for maintenance fees for the common areas of the condominium in accordance with regulations for the acts specified in subparagraph b of paragraph 2 of this Article in cases where the customer has not paid the full maintenance fees;

i) Require the submission of a written request in accordance with regulations regarding the conduct specified in subparagraph c of paragraph 2 of this Article;

k) Require the adjustment of the sale or lease of parking spaces in apartment buildings to comply with regulations regarding the conduct specified in point d of paragraph 2 of this Article;

l) Require the allocation of sufficient space in accordance with regulations for the acts specified in subparagraph a of paragraph 3 of this Article;

m) Require reimbursement of funds used in violation of regulations for the acts specified in subparagraph b of paragraph 3 and subparagraph h of paragraph 4 of this Article;

n) Require the organization of the first condominium owners’ meeting in accordance with regulations regarding the conduct specified in point c of paragraph 3 of this Article;

o) Require the preparation of complete documentation for the settlement of maintenance expenses as prescribed for the acts specified in subparagraph d of paragraph 3 of this Article, except for documentation that cannot be prepared after the date of issuance of the penalty decision;

p) Require the restoration of the original condition or the proper use of the property for the acts specified in subparagraphs a, b, and c of paragraph 4 of this Article;

q) Require the determination of the area of an apartment or other portion of a condominium under private ownership in accordance with regulations for the acts specified in Point d, Paragraph 4 of this Article, with respect to unresolved housing purchase or lease-purchase contracts;

r) Require the full payment of maintenance fees for the common areas of the condominium in accordance with regulations for the acts specified in subparagraph d of paragraph 4 of this Article;

s) Order the handover of documents as prescribed for the acts specified in subparagraph e of paragraph 4 of this Article;

t) Require the handover of the maintenance funds for the common areas of the condominium and all accrued interest in accordance with regulations regarding the acts specified in Point g, Paragraph 4 of this Article.

This Decree shall take effect on August 26, 2026./.