Vietnam Clarifies Apartment Building Lifespan vs. Ownership Rights

The Vietnamese government is advancing amendments to the Housing Law to clarify regulations concerning the 'lifespan' of apartment buildings and residents' 'ownership rights.' The latest draft proposes that the lifespan of apartment buildings be determined based on the structural design life of the construction. Under current law, apartment buildings have a minimum lifespan of 50 years. However, this is a measure of structural safety and does not automatically extinguish residents' ownership rights once the period expires. Legal experts explain that the lifespan serves as a benchmark for reassessing the building's safety, not as a trigger for the termination of ownership. The draft law stipulates that the lifespan of an apartment building will be determined and stated in its design and construction records, calculated from the time it is put into operation. If safety issues arise before the stipulated lifespan, assessments and necessary repairs will be conducted, even if within the design life. If the building cannot meet its design lifespan even after repairs, its lifespan will be re-evaluated. Regarding ownership rights, current laws grant domestic residents who purchase an apartment unit a land use rights certificate and proof of associated assets. This signifies the state's recognition of both shared land use rights for the apartment complex's land and individual ownership of the apartment unit itself. While land use rights for the apartment complex's land are long-term, there is currently no specified duration for the ownership of the apartment unit. The draft law clarifies that ownership rights persist until the apartment building is demolished, with land rights remaining long-term. The Ho Chi Minh City Real Estate Association (HoREA) has suggested that the lifespan of apartment buildings should be understood as the building's lifecycle, distinct from the duration of property ownership. Furthermore, the draft outlines that owners have the right to continue using the land for reconstruction by contributing to the rebuilding costs after the lifespan expires. If owners cannot afford to contribute, they may receive compensation based on the value of their land use rights or opt for relocation to another site. In cases where reconstruction is planned, residents may also be eligible for on-site resettlement. Source: VnExpress