Cases of state-owned house withdrawal in Vietnam

Cases of state-owned house withdrawal in Vietnam

Pursuant to the provisions of 84 of the Law on Housing 2014, a state-owned house in Vietnam shall be withdrawn in the one of cases below:

- The transaction in housing sale, lease, or lease purchase is conducted ultra vires, ineligible entities, or failed to meet requirements as prescribed in the Law on Housing 2014;

- The lease agreement expires but the lessee no longer wishes to rent or both contractual parties agree to terminate the housing lease or lease purchase agreement;

- The lessee returns the house under housing lease or lease purchase agreement;

- The lessee no longer entitled to rent housing as prescribed in the Law on Housing 2014;

- The lessee dies or has been declared as missing by the Court but he/she has nobody living together; or the lessee who is entitled to rent the official residence dies or has been declared as missing by the Court;

- The lessee has not paid the rent for 3 months or more without good reasons;

- The housing for lease or lease purchase is subject to demolition for renovation or reconstruction according to the decision of the competent agency;

- The lessee does not use the house for proper purposes as agreed in the housing lease agreement or he/she exchanges, sells, sublets or lends the house, or expands, renovates, or demolishes the house himself/herself without the consent of the homeowner.

The lessee of the house subject to housing withdrawal as prescribed above shall return the house to the housing authority; if not, the agency representing the homeowner shall enforce the housing withdrawal; the People’s Committee of the province shall enforce that house within 30 days, from the date on which the enforcement decision on housing withdrawal is issued.

Procedures for withdrawing state-owned houses in Vietnam

Procedures for withdrawing state-owned houses comply with the guidance in Article 45 of Decree 99/2015/ND-CP, specifically as follows:

- In case of withdrawal of a house as set out in Article 84 of the Law on Housing 2014 or a state-owned house is illegally appropriated, the house-operating unit must request the tenant, buyer/tenant, or buyer, or person who illegally appropriates the house (hereinafter referred to as house user), in writing, to return it within 60 days from the day on which the request is received.

If the house user fails to return the house by the aforementioned deadline, the house-operating unit shall request the housing authority to withdraw the house within 05 days from the deadline.

- Within 10 days from the day on which the request of the house-operating unit is received, the housing authority shall verify whether the house has to be withdrawn and, if the house has to be withdrawn, send a written request to the state ownership representative authority of such house for issuance of a decision on house withdrawal. If the housing authority finds that the house has to be withdrawn, it shall initiate procedures for house withdrawal specified in Article 45 of Decree 99/2015/ND-CP.

- Within 10 days from the day on which the request of the housing authority is received, the state ownership representative authority shall verify whether the house has to be withdrawn according to Clause 1 of Article 45 of Decree 99/2015/ND-CP and, if the house has to be withdrawn, issue a decision on house withdrawal and send it to the housing authority, the house-operating unit and the house user. 

If the house is under the management of the Ministry of National Defense or the Ministry of Public Security, the housing authority may issue a decision on house withdrawal (if authorized) and then send it to the house-operating unit, the house user, and the state ownership representative authority.

- A decision on house withdrawal shall contain:

+ The legal basis for house withdrawal;

+ Address of the house and full name of its user;

+ Reasons for house withdrawal;

+ Name of the unit in charge of house withdrawal, responsibility for returning the house;

+ Deadline for house withdrawal;

+ Plan for management and use of the house after withdrawal.

- Within 05 days from the receipt of the decision on house withdrawal, the house-operating unit shall send a written notification together with a copy of the decision on house withdrawal to the house user.

The house user must return the house to the house-operating unit by the deadline written on the decision. The house withdrawal shall be made into a record bearing signatures of relevant parties.

If the house user refuses to receive the notification or sign the house withdrawal record, the house-operating unit shall invite a representative of the People’s Committee of the commune in which the house is located to witness and sign the record.

- Within 05 days from the receipt of the decision on house withdrawal, the house-operating unit or the housing authority must terminate the lease or lease-purchase contract (if any)). Where a house is withdrawn because it was sold ultra vires or against the Law on Housing 2014 and Decree 99/2015/ND-CP, the buyer will receive a refund of the payment for the house, unless the buyer used fraudulent documents to buy the house.

- The house shall be withdrawn within 30 days from the issuance date of the decision on house withdrawal. The house-operating unit shall withdraw student housing.

- After the house is withdrawn, the house-operating unit must send the housing authority a report on completion of the house withdrawal. Withdrawn houses shall be used for the purposes specified in the Law on Housing 2014 and Decree 99/2015/ND-CP.

Mai Thanh Loi

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