Please provide us with basic regulations in relation with this issue
Question:
Our company is completing the construction of a building for rent and sale. We are preparing and establishing the service fee schedule of the building that covers fees of car parking, elevator, cleaning… Please provide us with basic regulations in relation with this issue.
Answer:
Recently, the Ministry of Construction issued the Circular No. 37/2009/TT-BXD on December 01, 2009 guiding the determination method and administration of the condominium service fee.
The scope of condominium service includes providing services such as controlling and maintaining the operation of the equipment system under common ownership or use, providing security, cleaning, collecting garbage, taking care the flower garden… and other services to ensure the normal operation of the condominium.
The condominium service fee shall comprise of cost of service – including direct cost, administrative expenses of the managing company, management board expenses (if any), reasonable profit and VAT.
The condominium service fee must be approved by more than 50% of the members of management board of the condominium. If the management board has not been set up, the service fee must be approved by more than 50% of the family households currently living in the condominium. In case where having the agreement on service fee in the apartment purchase contract, the service fee shall be executed in accordance with that agreement.
The cost of service in condominium service fee shall be collected and spent in the principles of self-collection, self-compensation and publicity to ensure the normal operation of the condominium.
The maintenance expenses including expenses for maintaining, repairing to maintain the quality of the condominium shall not be charged to the service fee.
Revenues from operating other services under the common ownership of the condominium (if any) shall be accounted for in accordance with the financial regime prescribed by the Ministry of Finance and to compensate the cost of condominium service in order to reduce the service fee.
You may check the Circular for the detailed formula to set up the condominium service fee.
The Circular shall apply to the condominiums and multi-storey buildings having a part of the area for residential purpose and it shall come into force after 45 days from the signing date.
