If the pledges are not met, prolonged disputes often arise, General Director of Dai Phuc Land Company told Dau tu (Investment) newspaper.

For two years, the developer is responsible for building maintenance, but after that period, residents can elect a board to manage affairs.

But because these boards are made up of just residents, few have management experience.

Nguyen Huong says the time is right for the State to reconsider regulations on management and operation of multi-ownership real estate projects like apartment buildings.

She says this is key for townhouse, villas and apartment buildings in new urban areas at large-scale complexes where there are many public facilities that need managing correctly.

Resident boards, she says, should only a ‘go-between’ to connect investors and those who live in projects, and should not be responsible for more technical issues like building upkeep.

Huong said in high-end residential schemes investors must be on top of their responsibilities as the buyer expects a five-star service for their investment.

Huong added that the State should have clear regulations on the roles and responsibilities of the partners in the operation to maintain the service quality.

According to Le Hoang Chau, chairman of HCM City Real Estate Association, although the management board now has legal status, enforcing the law is not straightforward.

This causes issues when it comes to making key decisions, and causes rifts between residents and investors.

The association has been working with the Ministry of Construction but there are no clear solutions.

"Regulations need to be clear, and responsibility of the board’s role needs to be spelt out better," he said, adding that board members should also have a basic knowledge of construction and building issues. — VNS