Can the condominium management board determine service fee rates for commercial areas?

Sat, 16 Sep 2023 22:45:00  |  Print  |  Email   Share:

Ms. Vu Thi Phuong Linh's company (Hanoi) owns commercial space in a mixed-use condominium building. According to Circular No. 02/2016/TT-BXD, service fees in office and commercial areas are subject to mutual agreement between the parties, and in case of disagreement, the price framework set by the People's Committee will apply.

However, the newly organized condominium meeting has decided on the fee rates for both the residential and commercial areas (with over 50% agreement). Ms. Linh's company does not agree, but the condominium management board explains that since her company is also the owner of the condominium, they must comply with the resolution of the condominium meeting.

Is this in accordance with the law? Can the management board decide on fees for commercial and office spaces?

The Ministry of Construction responds to this issue as follows:

In Article 106 of the 2014 Housing Law, regulations on the service fees for the management and operation of condominiums are specified. Accordingly, when a condominium meeting has been organized, the service fees for the management and operation of the condominium are determined by the condominium meeting.

In Article 30 of the Regulations on the Management and Use of Condominiums issued together with Circular No. 02/2016/TT-BXD dated February 15, 2016, by the Ministry of Construction, it is stipulated that the service fees for the management and operation of condominiums are determined in accordance with Article 106 of the 2014 Housing Law, based on each condominium and through agreements with the management and operation unit.

For condominiums with mixed-use purposes, the service fees for the management and operation apply to the office, service, and commercial areas based on mutual agreements between the parties. In cases where no agreement is reached, the service fee rates are determined according to the price framework set by the provincial People's Committee in the location of the condominium.

Therefore, we recommend that you compare your specific situation with the regulations mentioned above for implementation.

During the implementation process, if you encounter difficulties or obstacles, we suggest that you contact the Hanoi Department of Construction, which is the state management agency for housing in the area, for guidance and resolution according to their jurisdiction.

According to Chinhphu.vn (Government News).

 

By: Translator: LeAnh-Bizic

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