If the lessee arbitrarily sublets the house, can the lessor cancel the contract in Vietnam? Is the house being leased still mortgaged in Vietnam?

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Question date: 02/12/2023

If the lessee arbitrarily sublets the house, can the lessor cancel the contract in Vietnam? Is the house being leased still mortgaged in Vietnam? Can the lessor renovate the house while it is being leased in Vietnam?

    • If the lessee arbitrarily sublets the house, can the lessor cancel the contract in Vietnam?

      Can a lessee cancel the contract if they arbitrarily sublet the house? My name is Kieu, I'm 40 years old and I'm the owner. I let Phi rent a room for 3,000,000 VND. However, I haven't seen Phi moving around the house for a month, so when I went to see the house, I saw that Phi had rented my house to a stranger named Phu for 4,000,000 VND. I want to ask if I can cancel the contract with Phi?

      Reply:

      Pursuant to Article 132 of the 2014 Housing Law, regulations on unilateral termination of lease agreement are as follows:

      1. 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.

      2. The lessor is entitled to terminate unilaterally the lease agreement and withdraw the house in one of following cases:

      a) The lessor lease out the state-owned houses or social houses ultra vires and not satisfying requirements as prescribed in this Law;

      b) The lessee has not paid the rent for 3 months or more without reasonable explanation;

      c) The lessee uses the house for improper purposes as agreed in the agreement;

      d) The lessee expands, renovates, or demolishes the house under lease agreement without the consent of the homeowner;

      dd) The lessee exchanges, lends, sublets the house under lease agreement without consent of the lessor;

      e) The lessee still creates disorder or breaches hygiene an environment 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 neighborhood, the chief of village;

      g) Cases prescribed in Clause 2 Article 129 of this Law.

      3. The lessee is entitled to terminate unilaterally the lease agreement:

      a) The lessor does not repair the house when it is seriously damaged;

      b) The lessor increases the rents unreasonably or increases the rents without notification to the lessee;

      c) The right to enjoyment of the house is restricted by interests of a third party.

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

      Thus, according to current regulations compared to the case you mentioned, you can unilaterally cancel the contract. However, in case of termination of the contract, you must notify the lessee, Phi, of the violation and must notify at least 30 days in advance. If you do not notify, in case you cause damage, you must compensate according to regulations in Vietnam.

      If the lessee arbitrarily sublets the house, can the lessor cancel the contract in Vietnam? Is the house being leased still mortgaged in Vietnam? (Image from the Internet)

      Is the house being leased still mortgaged in Vietnam?

      I have a house in Ward 6, District 3 that is currently rented with monthly payments. I need to mortgage this house, can I? The real estate lease contract expires in 2021.

      Reply:

      Article 146 of the 2014 Housing Law stipulates the mortgage of rental housing as follows:

      1. The homeowner is entitled to mortgage the house under lease agreement provided that he/she notify the lessees of the mortgage in writing in advance. The lessees are entitled to keep renting for the rest of the lease term.

      2. In case the house under the lease agreement is settled to fulfill the obligations of the mortgagor, the lessees are entitled to keep renting for the rest of the lease term, unless the lessees commit violations prescribed in Clause 2 Article 131 of this Law or otherwise agreed.

      Thus, the house you are leasing to someone else can be mortgaged. However, you must notify the lessee in writing about the mortgage in advance in Vietnam. The lessee can continue to lease until the expiration of the lease contract (2021).

      Can the lessor renovate the house while it is being leased in Vietnam?

      Hello, I have a house on Street 99, District 9, Ho Chi Minh that I have rented out. I currently need money so I plan to sell this house. Therefore, I decided that next week I will repaint the house so I can sell it for a good price. The rental contract has 1 year left. I wonder if I need the consent of the lessee to repaint the house? Thanks for advice.

      Reply:

      Pursuant to Clause 1, Article 89 of the 2014 Housing Law regulations

      1. The lessor may renovate the house with the consent of the lessee, except for emergency cases or force majeure events; the lessee shall enable the lessor to maintain or renovate the house.

      => According to the information you provided, you will repaint the house being rented, so based on the above regulations in Vietnam, you have right to repaint but must have the consent of the lessee.

      Above is the consulting content.

      Best regards!

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    "This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts"

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