MINISTRY OF CONSTRUCTION PROPOSES NEW REGULATIONS ON APARTMENT OWNERSHIP IN THE DRAFT AMENDED HOUSING LAW

Proposal to Link Apartment Ownership to the Building's Service Life

According to the draft law, ownership rights for apartment units would be determined based on the service life of the residential building.

Once a building reaches the end of its designed service life or is determined, through official inspection, to no longer meet safety standards, the competent authority will assess whether the building can continue to be used or whether it must be demolished in accordance with applicable regulations.

If the building is deemed unsuitable for continued use and demolition is required, ownership rights to individual apartment units and privately owned areas within the building would be handled in accordance with the law, should the proposal be approved by the National Assembly.

Proposed Solutions After Apartment Building Demolition

The draft outlines several options intended to protect the interests of apartment owners.

If the land continues to be designated for apartment redevelopment, owners may jointly participate in constructing a new building by contributing investment capital or choose other legally permitted arrangements.

If owners choose not to participate in the redevelopment, their rights and interests would be addressed through compensation mechanisms or other solutions determined by the competent authorities in accordance with applicable laws.

Additional Circumstances Requiring Apartment Building Demolition

In addition to buildings that have reached the end of their service life and can no longer be safely used, the draft also proposes several other situations where demolition may be required, including:

• Buildings that have seriously deteriorated.
• Apartment buildings posing significant safety risks.
• Buildings severely damaged by natural disasters or major incidents.
• Buildings that fail to meet operational safety standards based on official inspection results.

The decision to demolish a building would be based on the quality assessment conducted by the competent authorities.

Proposed Resettlement Policy

To safeguard residents' interests, the draft also provides guidance on resettlement arrangements when apartment buildings are renovated or rebuilt.

Depending on local planning and the specific circumstances, residents may be offered on-site resettlement or receive compensation and support under current regulations if the land is no longer designated for apartment redevelopment.

What Do the Current Regulations Say?

Under the 2023 Housing Law currently in force, there is no fixed ownership term for apartment units. Instead, the law regulates the service life of the building.

When a building deteriorates or reaches the end of its designed service life, the competent authorities conduct inspections to evaluate its structural safety and determine whether it can continue to be used or should undergo renovation or reconstruction.

This means that the proposal contained in the draft amended Housing Law is still under consideration and has not yet become an official legal regulation.

Important Notes for Homebuyers

Homebuyers should distinguish between a draft law and legally effective regulations. The provisions contained in the draft are still undergoing public consultation, review, and revision before being submitted to the National Assembly for consideration and approval.

Therefore, at the present time, apartment ownership rights continue to be governed by the provisions of the current Housing Law.

Reference Sources: Draft Amended Housing Law dossier prepared by the Ministry of Construction; Housing Law 2023.