Regulations on the repossession of leased public housing not serving residential purposes in Vietnam in Vietnam in Vietnam

Regulations on the repossession of leased public housing not serving residential purposes in Vietnam in Vietnam in Vietnam (Image from the Internet)

On August 23, 2024, the Government of Vietnam issued Decree 108/2024/ND-CP, regulating the management, usage, and exploitation of houses and land as public property not serving residential purposes, assigned to local housing business management organizations for management and exploitation.

Regulations on the repossession of leased public housing not serving residential purposes in Vietnam in Vietnam in Vietnam

Article 17 of Decree 108/2024/ND-CP regulates the repossession of leased public housing not serving residential purposes in Vietnam in Vietnam as follows:

- Cases of repossession of leased houses:

+ The lease term has expired according to the house rental contract and the lessee is not granted an extension.

+ Organizations or individuals leasing the house violate payment regulations according to point c, clause 3, Article 16 of Decree 108/2024/ND-CP.

+ Organizations or individuals leasing the house violate the regulations at clause 4, Article 29 of this Decree.

+ To allocate for temporary use by agencies, organizations, and units according to clause 1, Article 20 of this Decree.

+ To handle houses and land according to Article 22 of Decree 108/2024/ND-CP.

- In cases where house repossession is regulated at clause 1, Article 17 of Decree 108/2024/ND-CP, the housing management and business organization must issue a written notice stating the reasons and request the organization or individual leasing the house to return the leased house to the housing management and business organization within 30 days from the date of receiving the notice. Upon returning the leased house, they must inventory the property, determine, and settle any payment obligations between the parties (if any).

- If the organization or individual leasing the house falls under the repossession cases regulated at clause 1, Article 17 of Decree 108/2024/ND-CP but does not return the leased house within the stipulated timeframe, the housing management and business organization shall report to the competent authority for enforcement. The procedures for enforcement are as follows:

+ The housing management and business organization submits or reports to the superior authority (if any) to the provincial People's Committee for consideration and issuance of the enforcement repossession decision.

+ Within 10 days from the date of receiving the submission from the housing management and business organization/superior authority of the housing management and business organization, the provincial People's Committee is responsible for checking and comparing with the regulations at clauses 1 and 2, Article 17 of Decree 108/2024/ND-CP to issue the enforcement repossession decision and send this decision to the Department of Finance, housing management and business organization, superior authority (if any), and the leasing organization or individual for implementation.

+ Based on the enforcement repossession decision, the provincial People's Committee may directly or delegate the district-level People's Committee where the leased house is located to organize the enforcement repossession and return the house to the housing management and business organization for management according to regulations. The handover must be documented with confirmation from participating enforcement agencies.

+ The maximum time to implement the enforcement repossession does not exceed 30 days from the date the provincial People's Committee issues the enforcement repossession decision.

+ After reclaiming the house, the housing management and business organization must report in writing to the Department of Finance to report to the provincial People's Committee about the completion of the house repossession.

Main Contents of the Lease Contract for public housing not serving residential purposes in Vietnam from October 15, 2024

According to Article 18 of Decree 108/2024/ND-CP, the lease contract for public housing not serving residential purposes in Vietnam includes:

The lease contract is signed between the housing management and business organization and the organization or individual with the right to lease the house according to Article 14 of Decree 108/2024/ND-CP or the organization, individual winning the auction according to Article 15 of Decree 108/2024/ND-CP. If the lease term is extended or the contract terms are adjusted, an appendix must be signed.

- The main contents of the lease contract include:

+ Information about the lessor and lessee.

+ Details about the house, buildings for lease.

+ Rent price and adjustments.

+ Payment methods and deadlines.

+ Lease term; handover, receiving time of house and land.

+ Purpose of house usage.

+ Conditions for contract extension.

+ Rights and obligations of the parties.

+ Liability for contract breaches.

+ Penalties for contract breaches.

+ Termination cases and solutions.

+ Dispute resolution.

+ Effective date of the contract.

+ Other contents must comply with Decree 108/2024/ND-CP and other related laws.

- Based on the regulations at clauses 1 and 2, Article 18 of Decree 108/2024/ND-CP and the lease contract template (No. 06) in the appendix issued with Decree 108/2024/ND-CP, the housing management and business organization signs the lease contract with organizations or individuals according to the law.

More details can be found in Decree 108/2024/ND-CP which takes effect in Vietnam from October 15, 2024.

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