07 things you should know about usufruct rights under the Civil Code 2015 in Vietnam

07 things you should know about usufruct rights under the Civil Code 2015 in Vietnam (Internet image)

1. What is usufruct right?

According to Article 257 of the Civil Code 2015, usufruct right means the right to use a property, under ownership of another entity, and enjoy its yield or income in a specific period of time.

The usufruct right shall be established as prescribed by law, according to agreement or will.

2. Effect of usufruct right in Vietnam

Article 259 of the Civil Code 2015 stipulates the effect of the usufruct right as follows:

- The usufruct right shall be established from the time of transfer of the property, unless otherwise agreed or otherwise prescribed by law.

- The established usufruct right shall take effect to every natural and juridical person, unless otherwise prescribed by law.

3. Time limit of usufruct right in Vietnam

- The time limit of usufruct right shall be agreed by the parties or prescribed by law provided that its maximum length is the full life of the first usufructary being natural person or the period of time for which the first usufructary being juridical person exists as long as it does not exceed 30 years.

- The usufructary has the right to lease the usufruct right within a specific period of time prescribed in Clause 1 of this Article.

4. Rights of usufructary in Vietnam

- On his/her own or permit another person exploit, use and enjoy yield and/or income from the object of the usufruct right.

- Request the owner of the property perform obligation to repair the property as prescribed in Clause 4 Article 263 of this Code; if the usufructary performs the obligation on behalf of the owner of property is entitled to request the owner to refund the expenses.

- Lease the usufruct right to the property.

5. Obligations of usufructary in Vietnam

- Receive property under current conditions and register it if required by law.

- Exploit the property for appropriate purposes.

- Preserve property as if it is his/her own property.

- Maintain and repair property periodically to ensure the normal use; restore the status of the property and remedy the bad consequences of property due to his/her poor performance of obligations in line with technical requirements or by custom of property preservation.

- Return the property to the owner of the expiration of usufruct time limit.

6. Rights and obligations of property owner in Vietnam

- Dispose property without any change of the usufruct right which has been established.

- Request a court to deprive usufruct right from a usufructary who seriously breaches his/her obligations.

- Do not obstruct or hassle or otherwise violate the legitimate rights and interests of the usufructary.

- Perform obligation to repair property to ensure that there is no significant decline leading the property cannot be used or lost all its utility and value.

7. Right to enjoy yield and income in Vietnam

- Each usufructary has ownership right to the yield and income derived from the property being the object of the usufruct right during its effective period of time.

- If the usufruct right cease to exist before the harvest time of yields and income, the usufructary shall, upon the harvest time, be entitled to enjoy the value of yield and income received corresponding the time that person is entitled to such usufruct right.

8. Termination of usufruct right in Vietnam

The usufruct right shall terminate in any of the following cases:

- The time limit of usufruct right has expired;

- As agreed by the parties;

- The usufructary becomes the owner of the property being the subject of the usufruct right;

- The usufructary waives or fails to exercise the usufruct right during a time limit prescribed by law;

- The property being subject of the usufruct right no longer exists;

- Pursuant to a decision of a court;

- Pursuant to other provisions of law.

Note: The property being subject of usufruct right must be returned to the owner upon the termination of usufruct right, unless otherwise agreed or otherwise prescribed by law.

Legal basis: From Article 257 to Article 266 of the Civil Code 2015.

Nhu Mai

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