Vietnam: Conditions of leasing house

Vietnam: Conditions of leasing house (Source: Internet)

1. Methods of transactions in housing 

Article 117 of Vietnam's Law on Housing 2014 stipulates methods of transactions in housing as follows

Transactions in housing include agreements on housing sale, lease, and lease purchase, transfer of agreements on commercial housing sale, gifting, exchange, inheritance, mortgage, capital contribution, lending, permission for stay, and management authorization.

2. Conditions for leasing house

Clause 2, Article 118 of Vietnam's Law on Housing 2014 stipulates the conditions of houses participating in transactions as follows:

- There is the Certificate as prescribed, except for cases prescribed in Clause 2 of Article 118 of Vietnam's Law on Housing 2014;

+ Transactions in off-the-plan housing sale or mortgage;

+ Transactions in house of gratitude gifting;

+ Transactions in state-owned housing sale or lease purchase; social housing or non-state-owned housing serving the relocation sale or lease purchase; housing sale prescribed in Clause 4 Article 62 in Vietnam's Law on Housing 2014;

+ Transactions in housing lease, lending, permission for stay, management authorization;

+ Transactions in housing inheritance;

+ Transactions in transfer of agreement on commercial housing which is under residential construction projects including the case in which the house is received from the investor but the application for the Certificate of that house has not sent to the competent agency.

- There is no dispute, complaint, or proceedings for homeownership; the term of homeownership has not expired if the house is under a term contract on housing;

- The house is not distrained;

- There is no decision on land revocation, notification of housing clearance or demolishment issued by the competent agency.

Note: Any house under lease contract shall both follow the above regulations and satisfy requirements pertaining to quality, safety regarding the lessee, electricity system, water supply and drainage, hygiene and environment.

3. Requirements pertaining to parties in the housing transactions

Pursuant to Article 119 of Vietnam's Law on Housing 2014 stipulates the requirements pertaining to parties in the housing transactions as follows:

- The lessor has the following conditions:

+ He/she is the homeowner, or the person permitted and authorized by the homeowner to enter into housing as prescribed in this Law and law on civil;

If the agreement of commercial housing is transferred, he must be the buyer for housing of the investor or the transferee of the agreement on housing sale;

+ If the entity is a person, he must have full civil capacity to enter into transactions in housing as prescribed in law on civil; if the entity is an organization, it must have legal personality, except for the organization giving house of gratitude.

- The lessee must meet the following conditions:

+ If the entity is a Vietnamese person, he/she must have full civil capacity to enter into transactions in housing as prescribed in law on civil and he/she is not required to register permanent residence in the place where the house under transactions is located;

+ If the entity is a foreign person, or an oversea Vietnamese, he/she must have full civil capacity to enter into transactions in housing as prescribed in Vietnamese law, qualify for the homeownership in Vietnam as prescribed in this Law and he/she is not required to register temporary or permanent residence in the place where the house under transactions is located.

In addition,  If the entity who buys, rents, rents and purchases housing, or receives agreements on commercial housing sale, receives housing exchange, gives, inherit housing, receives housing as capital contribution or mortgage, or is authorized to manage housing is an organization, it must have legal personality regardless of place where it sets up or registers business;

If the entity is a foreign organization, it must qualify for the homeownership in Vietnam as prescribed in Vietnam's Law on Housing 2014;

If it is authorized to manage housing, it must provide real estate services and run business in Vietnam as prescribed in law on real estate trading.

Ngoc Nhi

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