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Process of terminating the tenancy agreement in Vietnam

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The procedure for terminating the tenancy contract should base on the law in a certain order. In order to avoid the risks and disputes arising, parties should grasp and understand the legal regulations on this issue. In this article, LSX legal firm would like to provide you with: “Process of terminating the tenancy agreement in Vietnam”

  • Law on Housing 2014
  • Civil Code 2015

Content of a tenancy contract

Contracting parties shall conclude and make a housing agreement in writing, including:

  1. Full names of individuals, names of organizations, and addresses of contracting parties;
  2. Description of characteristics of the house and the piece of land attached to that house. Regarding agreements on apartment sale or lease purchase, contracting parties must state the common areas or common-using areas; private areas; floor areas; purposes of the common areas or common-using areas in the apartment building according to approved design;
  3. The value of contributed capital, the transaction price of housing if there is a term on pricing in the agreement; regarding transactions in housing sale, lease, or lease purchase which is regulated pricing by the State, contracting parties shall comply with that regulations;
  4. Deadline for and method of payment regarding transactions in housing sale, lease, lease purchase, or transfer of agreements on housing sale;
  5. Deadline for housing transfer; housing warranty duration regarding transactions in buying or renting and buying a new house; terms of agreements on housing lease, lease purchase, mortgage, lending, permission for stay, authorization of housing management; deadline for capital contribution;
  6. Rights and obligations of contracting parties;
  7. Commitments of contracting parties;
  8. Other agreements;
  9. Effective date of the agreement;
  10. Date of agreement;
  11. Signatures and full names of contracting parties, or stamps (if any) and positions of the signatories regarding organizations.

A rental contract belongs to forms of housing contracts, so it will also contain the same contents as the above provisions.

7 Cases of termination of the tenancy agreement

Based on Articles 131 and 132 of the Law on Housing 2014, if the house is 

not owned by the State but falls into one of the following circumstances, the house lease contract may be terminated:

  • The lease agreement expires; regarding the unlimited term agreement, it shall terminate after 90 days, from the day on which the lessor notify the lessee of the termination of the lease agreement;
  • Both contracting parties agree to terminate the agreement;
  • The house for a lease no longer exists;
  • The lessor does not live with anybody when he/she dies or declared missing by the court.
  • Any house for lease damaged, in danger of collapse, or in the area subject to land withdrawal or housing clearance or demolition according to decisions issued by the competent agency; or any house for lease subject to a decision on the compulsory purchase order or commandeering issued by the State to use for other purposes. The lessor must notify the lessee of the termination of the lease agreement in writing before 30 days as prescribed in this Clause unless otherwise agreed;
  • The lessor unilaterally terminates the contract.
  • The lessee unilaterally terminates the contract.

Unilateral termination of the tenancy agreement

According to Article 132 of the Law on Housing 2014, during the lease term as agreed in the contract, the lessor may not unilaterally terminate the lease contract and withdraw the house leased, except for the cases specified in Clause 2 of this Article.

The lessor has the right to terminate unilaterally the lease agreement and withdraw the house in one of the following cases:

  • Firstly, the lessor leases out the state-owned houses or social houses ultra vires and not satisfying requirements.
  • Secondly, the lessee has not paid the rent for 3 months or more without reasonable explanation.
  • Thirdly, the lessee uses the house for improper purposes as agreed in the agreement.
  • Fourthly, the lessee expands, renovates, or demolishes the house under the lease agreement without the consent of the homeowner;
  • Fifthly, the lessee exchanges, lends, sublets the house under the lease agreement without the consent of the lessor.
  • Sixthly, the lessee still creates disorder or breaches hygiene and environmental conditions causing negative effects on activities of the neighborhood although he/she is warned for the third time by the lessor or the chief of the neighborhood, the chief of the village.
  • Lastly, cases prescribed in Clause 2 Article 129 of the Law on Housing 2014.

The lessee has the right to terminate unilaterally the lease agreement if:

  • Firstly, the lessor does not repair the house that seriously damaged.
  • Secondly, the lessor increases the rents unreasonably or increases the rents without notification to the lessee.
  • Thirdly, the right to the enjoyment of the house restricted by the interests of a third party.

However, if any party unilaterally terminates the lease agreement, the other party must be informed at least 30 days, unless otherwise agreed; if he/she commits violations mentioned in this Clause and cause damage, he/she must pay compensation.

Process of terminating the tenancy agreement in Vietnam

Step 1: The lessor or the lessee may unilaterally terminate the contract in the cases mentioned above (Clause 2, Clause 3, Article 132 of the Law on Housing 2014).
Step 2: After the correct case has been identified and the evidence proves that there are grounds for terminating the tenancy contract, the unilaterally terminating party must notify the other party at least 30 days in advance, unless the parties otherwise agreed (according to Clause 3, Article 132 of the Law on Housing 2014).
Additionally, if the rental contract is made in writing and notarized at the notary office, a notice should be sent to the notary office.
Step 3: If the other party agrees to the termination, both parties make a record of liquidation of the lease contract.
When having a dispute about the rental contract that the two parties cannot resolve, they can file an application to the Court where the dispute occurs (the place of lease or rent) to ask the court to settle in accordance with the law.
If the unilateral termination of the contract violates regulations, causing damage, the violating party must compensate the other.

LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:

  • Legal advice related to new regulations;
  • Representing in drafting and editing documents;
  • We commit the papers to be valid, and legal for use in all cases;
  • Represent to submit documents, receive results, and hand them over to customers.

With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.

Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.

Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.

After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.

Contact LSX

Finally, hope this article is useful for you to answer the question about “Process of terminating the tenancy agreement in Vietnam”. If you need any further information, please contact  LSX Law firm+84846175333 or Email: [email protected]

How to determine compensation for early termination of tenancy?

Property damage: The benefits associated with the use and exploitation of the rented house lost or reduced; expenses to repair damage caused by the rental house claimed before the due date…
Health damage: Actual lost/reduced income due to early repossession. If it cannot be determined, it is calculated according to the average income of workers of the same type…

How to settle the compensation for early termination of tenancy?

The parties can negotiate on the level of compensation, form (money, in-kind, performance of work), and method (one time, many times) first. Then, if parties cannot reach into an agreement, the aggrieved party may file a lawsuit to the Court to claim compensation.

How does the law defines tenancy contract?

Contract for lease of property means an agreement between parties whereby a lessor delivers property to a lessee for use during a fixed term and the lessee is required to pay rent.
Lease contracts of houses or lease contracts of houses for other purposes shall comply with this Code, the Law on Housing and relevant laws.

Conclusion: So the above is Process of terminating the tenancy agreement in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com

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