How to Organise the First Owners’ Committee Meeting

What Is An Owners’ Committee Meeting? 

At the first owners’ committee meeting, representatives, owners and direct users of an apartment building decide on how a building will be used, the rights and responsibilities of different stakeholders, and how operations will align with the law. The first meeting establishes the common regulations and codes of conduct, delineates the responsibilities and interests of related parties, and lays the foundations for the implementation and handling of issues to ensure stable and smooth operations. Given its importance and long-term influence, the first owners’ committee meeting must be organised and conducted according to the law. 

See more: The Criteria You Need to Pick the Perfect Property Management Agency

Regulations on organising the first owners’ committee meeting according to Vietnamese law.

Article 13 in consolidation document No. 05/VBHN-BXD stipulates the conditions for organising the first owners’ committee meeting as follows:  

1. Requirements for the organisation of the first owners’ committee meeting:  

After operations begin, the first owners’ committee meeting must take place within 12 months. Representatives from at least 50% of the delivered apartments (excluding unsold or those under a lease-purchase agreement) must attend. If fewer than 50% of the apartments have been handed over within the first 12 months of operations, the first meeting can take place after at least 50% of the apartments have been handed over.

2. Attendance requirements:   

Apartment block meetings must be attended by representatives of at least 50% of the handed-over properties. If attendance is less than 50%, the developer may request the local People’s Committee to organise the meeting.  

3. Content to be prepared:  

Depending on the type of apartment building, either the developer or the owners are responsible for preparing the meeting, including the date, time, agenda, and inviting participants. To ensure a smooth first meeting, some parties even hold a preparatory meeting before the official first meeting. Some preparation procedures include:  

a) Draft regulations for the meeting.

b) Anticipate amendments to the content of the management and use regulations (if any).

c) Draft regulations on electing the owner’s committee, the proposed name of the Committee, the proposed list of committee members, expected heads and deputy heads (if the apartment building has to establish a committee); plans for the training and management of the committee.

d) For buildings with public facilities, additional preparations are required, including proposals for the service fees. These are the fees required for administrative and operational services and procedures. There also needs to be a draft plan for the maintenance of shared areas. If the apartment building must establish a Committee, operation model, draft regulations on operation, receipts and expenditures should be proposed.

e) Other proposals related to the management of the apartment building. 

4. Decisions at the first owners’ committee:  

a) Regulations on owners’ committee meetings (including first, regular, and irregular meetings).

b) Regulations on electing the owner's committee, name and committee members, the heads and deputies, and the training and management of the committee.  

c) Amendments and supplements to the management and use regulations (if any).

d) Service charges; this is to be done according to the law, the existing regulations, and with negotiation with the managing unit.  

e) Expenses that residents and guests must cover (for example, parking, water, and electricity).  

f) Other relevant issues.  

See more: How to Calculate and Build Property Management Budgets

Tips for organising a great first owners’ committee meeting

1. Prepare an agenda  

The developer and owners must prepare carefully and inform all relevant stakeholders of the venue, date, time, and agenda well in advance.  

The agenda comprises the content to be discussed and voted on such as the use regulations, maintenance plans and budgets, service fees, election regulations, financial revenue and expenditure regulations, frequently asked questions, and the personnel arrangement for the owners’ committee.

2. Consult with a professional unit to prepare the necessary documentation  

Because the first owners’ committee meeting must follow strict laws and regulations, it requires copies of specific documents. These include samples of attorney forms, votes, minutes, building rules, SOPs, management rates and services, procedures and criteria for establishing an owners’ committee. They must be compiled into a full set of documents with the help of a property management and operations expert. The expert should have practical experience and a detailed understanding of the relevant laws and trends. By utilising a property management expert, developers ensure that the first meetings are comprehensive and comply with relevant laws. 

3. Coordinate with Attendees and Stakeholders

To be legitimate, the first owners’ committee must be conducted with the coordination of various stakeholders. There must be a minimum number of attendees for decisions and regulations to be passed. The Interim Representative Board must ensure that all residents know about and attend the meeting.

Conclusion

Organising the first owners’ committee meeting is essential to creating legitimate, legal, and comprehensive rules and regulations for smooth future operations. Developers should consult professional management experts to host a first meeting to avoid potential future conflicts or disputes.

Savills provides consultancy services across real estate types, including commercial centres, offices, high-end apartment buildings and urban areas. We offer a consultancy package to developers to help them host a thorough, comprehensive, and efficient first owners’ committee meeting that complied with the law. The package includes: 

• Consultancy on the organisation of the first annual resident meeting.
• Legal consultancy on the organisation of the first owners’ committee.
• Consultancy on establishing an owners’ committee in accordance with current laws.

To learn more about Savills Property Management and Consulting services, please contact us.
Read more:

• How to Distinguish Owners' Committees from Management Boards
• Health and Safety in Property Management
• How to Divide Common and Private Areas in Apartment Projects