Vietnam Law has general regulations on housing lease. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask what are regulations on lease term and housing rents in Vietnam? What are regulations on jointly-owned houses for lease? What are regulations on Regulations on rights to continue renting houses in Vietnam? Thanks for answering my questions!”
Legal grounds
2014 Vietnam Law on Housing
Lease term and housing rents
– The lessor and the lessee may agree about lease term, rents and payment, lump sum or installment payments; if there are any regulations on housing rent regulated by the State, the contracting parties shall comply with regulations.
– If the lessor renovates the house with consent of the lessee although the lease term does not expire, the lessor is entitled to adjust the housing rents. The new rent shall be agreed by contracting parties; if not, the lessor is entitled to unilaterally terminate the lease agreement and pay compensation to the lessee as prescribed.
– The lawful rights and interests of the lessor and the lessee shall be protected by the State over the lease term.
Regulations on jointly-owned houses for lease
– The lease on a jointly-owned house must be agreed by all homeowners, unless the joint owners lease out their shares.
– The joint owners may authorize their representatives to conclude housing lease.
Regulations on terminating lease agreement
– With respect to agreements on state-owned house lease, they shall be terminated if they are subject to one of cases prescribed in Clause 1 Article 84 of 2014 Vietnam Law on Housing.
– With respect to agreements on non-state-owned house lease, they shall be terminated in one of the following cases:
+ 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 lease no longer exists;
+ The lessor does not live with anybody when he/she dies or is declared missing by the court;
+ Any house for lease which is 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 decision on 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 30 days in advance as prescribed in this Clause, unless otherwise agreed;
+ The agreement terminates as prescribed in Article 132 of 2014 Vietnam Law on Housing.
Unilateral termination of lease agreement
– During the lease term, the lessor may not unilaterally terminate the lease agreement and withdraw the house, except for cases prescribed in Clause 2 of this Article.
– The lessor is entitled to terminate unilaterally the lease agreement and withdraw the house in one of following cases:
+ The lessor lease out the state-owned houses or social houses ultra vires and not satisfying requirements as prescribed in 2014 Vietnam Law on Housing;
+ The lessee has not paid the rent for 3 months or more without reasonable explanation;
+ The lessee uses the house for improper purposes as agreed in the agreement;
+ The lessee expands, renovates, or demolishes the house under lease agreement without the consent of the homeowner;
+ The lessee exchanges, lends, sublets the house under lease agreement without consent of the lessor;
+ The lessee still creates disorder or breaches hygiene an environment conditions causing negative effects on activities of the neighborhood although h+she is warned for the third time by the lessor or the chief of neighborhood, the chief of village;
+ Cases prescribed in Clause 2 Article 129 of 2014 Vietnam Law on Housing.
– The lessee is entitled to terminate unilaterally the lease agreement:
+ The lessor does not repair the house when it is seriously damaged;
+ The lessor increases the rents unreasonably or increases the rents without notification to the lessee;
+ The right to enjoyment of the house is restricted by interests of a third party.
– If any party unilaterally terminates the lease agreement, the other party must be informed for at least 30 days, unless otherwise agreed; if h+she commits violations mentioned in this Clause and cause damage, h+she must pay compensation as prescribed.
Regulations on rights to continue renting houses
– In case the homeowner dies but the lease has not expired, the lessee has right to continue renting the house for the rest of their lease term. The heir is required to keep performing the lease agreement, unless otherwise agreed. If the homeowner has no lawful heir as prescribed, that house shall be under ownership of the State and the lessees have right to continue renting as prescribed in regulations on management and use of state-owned houses.
– If the homeowner transfers ownership of the house under lease agreement to other people but the lease term has not expired, the lessee has right to continue renting for the rest of their lease term; the new homeowner must keep performing the lease agreement, unless otherwise agreed.
– If the lessee dies but the lease term has not expired, any people living with the lessee has right to continue renting for the rest of the lease term, except for official residence lease or unless otherwise agreed.
Procedures for social housing lease purchase
– Any transaction in social housing lease purchase must be concluded under an agreement as prescribed in Article 121 of 2014 Vietnam Law on Housing; regarding the lease purchase transaction in social housing which is invested by organizations or individuals, the lease purchase agreement must be concluded between the investor and the lessee; regarding the lease purchase transaction in state-owned social housing, the lease purchase agreed shall comply with Point a Clause 2 Article 83 of 2014 Vietnam Law on Housing.
– When the lease purchase term expires and the lessee has paid off the total amount as agreed, the lessor is required to request the competent agency to grant the Certificate the lessee, unless the lessee wishes to apply for the Certificate himsel+herself.
Rights and obligations of lessees under agreements on lease purchase of social housing
– The lessee must comply with Article 62 of 2014 Vietnam Law on Housing and other obligations as specified in the agreement on housing lease purchase.
In case the lease purchase term expires but the lessee has been received the house, the lessee shall return the house to the lessor; the lessee may claim a refund of the option, except for cases prescribed in Point e and Point h Clause 1 Article 84 and Clause 2 Article 136 of 2014 Vietnam Law on Housing.
– If the lessee dies, it is required to follow the procedures below:
+ If there is any lawful heir living in that house with the lessee, h+she has right to continue renting and buying the house, unless the lawful heir voluntarily returns the house under lease purchase agreement;
+ If the lessee has lawful heir(s) but they do not live together in that house, and the lessee has paid for two-thirds of the lease purchase term, the lawful heir(s) is/are entitled to pay off the total amount in proportion to one-thirds of the remaining lease purchase term and the heir(s) shall be issued the Certificated by the competent agency;
+ If there is any lawful heir not subject to Point a and Point b of this Clause, the lessor is entitled to withdraw the house and the lawful heir is entitled to claim the refund of option included in the interest as prescribed in inter-bank unperiodical interest rates on the day on which the option is refunded;
+ If there is not any heir, the option shall be under ownership of the State and the lessor is entitled to withdraw the house, and then enter into other lease agreement or lease purchase agreement with other entities entitled to rent or rent and purchase social housing as prescribed.
Terminating lease purchase agreements and withdrawal of social housing under lease purchase agreements
– Regarding lease purchase transactions in state-owned social housing, the termination of lease purchase agreement and housing withdrawal shall comply with one in cases prescribed in Point a, b, c, e, g and h Clause 1 Article 84 of 2014 Vietnam Law on Housing.
– With respect to agreements on non-state-owned house lease purchase, the lessor is entitled to terminate the agreement on housing lease purchase or withdraw the house under the lease purchase agreement in one of the following cases:
+ The lessee leases out or sells the house under lease purchase agreement to other people without the consent of the lessor when the lease purchase term has not expired;
+ The lessee has not paid the rents for 3 months or more without good reasons;
+ The lessee expands, renovates, or demolishes the house under lease purchase agreement without the consent of the lessor;
+ The lessee uses the house for improper purposes as agreed in the agreement;
+ The lessee is subject to cases prescribed in Point d Clause 2 Article 135 of 2014 Vietnam Law on Housing;
+ Other cases as agreed by contracting parties.
– The lessee not subject to Clause 1 of this Article is entitled to terminate the lease purchase agreement as agreed in the agreement; if h+she has received the house, h+she must return the house to the lessor.
Please see more:
- Instructions for exclusive registration of company logos in Vietnam
- Service of changing the legal representative of Vietnamese enterprises
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Frequently asked questions
The lessor and the lessee may agree about lease term, rents and payment, lump sum or installment payments; if there are any regulations on housing rent regulated by the State, the contracting parties shall comply with regulations.
If the lessor renovates the house with consent of the lessee although the lease term does not expire, the lessor is entitled to adjust the housing rents. The new rent shall be agreed by contracting parties; if not, the lessor is entitled to unilaterally terminate the lease agreement and pay compensation to the lessee as prescribed.
The lawful rights and interests of the lessor and the lessee shall be protected by the State over the lease term.
Conclusion: So the above is General regulations on housing lease in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
