LATEST UPDATE ON THE TERM OF USE OF APARTMENT BUILDINGS ACCORDING TO THE LAW ON HOUSING 2023

1. How many years is the term of use of an apartment building?

The term of use of the apartment building is specifically regulated in Article 58 of the Law on Housing 2023 as follows:

“1. The term of use of the apartment building is determined based on the design documents and the actual service life of the building as concluded by the competent authority's inspection. The term of use of the apartment building according to the design documents must be clearly stated in the appraisal document of the competent authority according to the provisions of the law on construction.

2. The term of use of an apartment building is calculated from the date of acceptance for use in accordance with construction laws.

…………”.

Thus, instead of stipulating the term of use of an apartment building use based on construction grade and quality inspection conclusions as prescribed in Article 99 of the Law on Housing 2014, the new regulations in the Law on Housing 2023 specify that the duration is determined based on the design documents and the actual service life as concluded by the inspection.

2. Inspection and assessment of apartment building quality

The Law on Housing in 2014 did not contain specific regulations on the inspection and assessment of apartment building quality, instead, this issue was later addressed in Decree No. 69/2021/ND-CP on renovation and reconstruction of apartment buildings. In the Law on Housing in 2023, not only is the duration of apartment building use clearly defined, but quality management is also more strictly regulated through detailed provisions on inspection and quality assessment. These regulations aim to ensure safety, extend the lifespan of buildings, and address previous legal gaps.

Specifically, pursuant to clause 1, Article 61 of the Law on Housing 2023 it is stipulated that “The provincial People's Committee shall direct the provincial housing management agency to take the lead and coordinate with relevant local authorities and the district level People's Committee where the apartment building is located to conduct an inspection and quality assessment of apartment buildings constructed within the locality. For apartment complexes, a comprehensive inspection and assessment of the entire complex must be carried out before including it in the renovation and reconstruction plan”.

The inspection conclusion must clearly state the inspection contents in accordance with construction regulations. Additionally, it must determine whether the inspected apartment building falls under the category requiring demolition. If the apartment building is not subject to demolition, it may continue to be used, and the inspection conclusion must specify the duration for which it can remain in use until it is classified as requiring demolition.

3. Is it possible to buy an apartment building to be granted a certificate of land use rights, ownership of houses, and other land-attached assets?

3.1. Subjects who are granted certificate of land use rights, ownership of houses, and other land-attached assets when buying apartment buildings

Pursuant to Article 8 of the Law on Housing 2023, the entities eligible for home ownership in Vietnam include: Domestic organizations and individuals; overseas Vietnamese in accordance with the provisions of the law on nationality; and foreign organizations and individuals as prescribed in clause 1, Article 17 of the Law on Housing 2023. In particular:

• Domestic organizations and individuals may own houses through construction, purchase, lease purchase, donation receipt, inheritance, capital contribution, house exchange, resettlement or other forms as prescribed by law;
• Overseas Vietnamese who are permitted to enter Vietnam may own houses associated with residential land use rights under the land law;
• Foreign organizations and individuals may own houses as prescribed in clause 2, Article 17 of the Law on Housing 2023.

Individuals and organizations that meet the above conditions may have their home ownership rights recognized by the competent state authority through the issuance of the Certificate of land use rights, ownership of houses, and other land-attached assets.

3.2. Time of issuance of certificates of land use rights and ownership of houses and other land-attached assets

Pursuant to clause 8, Article 39 of the Law on Housing 2023, the obligations of investors in commercial housing construction projects are prescribed as follows:

“Within 50 days from the date on which the houses are handed over to buyers or from the date on which the rent-to-own party has fully paid the agreed amount, the investor must submit an application to the competent state authority for the issuance of the Certificate to the buyer or the rent-to-own party, unless the buyer or rent-to-own party voluntarily applies for the Certificate themselves”.

Pursuant to clause 1, Article 22 of Decree No. 101/2024/ND-CP, it is stipulating that “The initial registration of land and assets attached to land shall not exceed 20 working days; the issuance of the Certificate of land use rights and ownership of assets attached to land for the first time shall not exceed 03 working days”.

Accordingly, within 50 days from the date of handover of the apartment building, the investor is responsible for completing the dossier and carrying out the procedures to apply for the Certificate of land use rights, ownership of houses, and other land-attached assets. The competent authority shall process the request and issue the Certificate within a maximum of 23 working days. Thus, pursuant to the above regulations, approximately more than two months from the date of handover of the apartment, the buyer shall be granted the Certificate of land use rights, ownership of houses, and other land-attached assets in accordance with the law.

Above is the latest summary of information about the terms of use of apartment buildings and some relevant key regulations under the Law on Housing 2023. If valued customers have any questions about the procedures for issuing a Certificate when buying an apartment or disputes related to the purchase, sale, or transfer of real estate, please contact CONSULTING ATTORNEY at 0966 955 711for timely and fast support.