Vietnam: Lease of social housing to unqualified persons shall be fined up to VND 30 million

“I want to know how much are fines for lease of social housing to unqualified persons? How much is the maximum fine level?” This is a question from Mr. Ha Van Manh sent to the LAWNET for support on June 08, 2020.

Cho thuê nhà ở xã hội không đúng đối tượng bị phạt đến 30 triệu đồng

LAWNET would like to answer Mr. Manh’s question as follows:

According to Decree No. 139/2017/NĐ-CP of Vietnam’s Government, lease of social housing to unqualified persons shall be fined up to VND 30 million. Specifically, according to Clause 1 Article 63 of Decree No. 139/2017/NĐ-CP of Vietnam’s Government, penalties for violations against regulations on management of housing transactions are as follows:

Article 63. Violations against regulations on management of housing transactions

1. A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for one of the following violations:

a) Sale, lease or lease purchase of state-owned housing ultra vires, or to unqualified persons or inconsistently with prescribed conditions;

b) Sale, lease or lease purchase of social housing to unqualified persons or inconsistently with prescribed conditions.

A fine ranging from VND 50,000,000 to VND 60,000,000 shall be imposed for one of the following violations:

- State-owned house lessee or tenant’s exchange, sale, sub-lease or borrowing of house without the approval by a competent authority as regulated by law;

- Social house lessee or tenant or buyer’s sale, sub-lease or borrowing of social house inconsistently with regulations;

- Failure to comply with regulations on transfer of contract for sale of commercial house;

- Sale, lease purchase, donation, exchange, mortgage or contribution of capital by a house which fails to satisfy requirements thereof prescribed by law.

Moreover, Article 63 of Decree No. 139/2017/NĐ-CP of Vietnam’s Government also specified penalties imposed on foreign organizations and individuals for violations against housing regulations as follows:

- A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed on a foreign lessor for failure to send a written notification to the housing authority of district where leasing house is located;

- A fine ranging from VND 30,000,000 to VND 40,000,000 shall be imposed for failure to make payments for purchase or lease purchase of house through a credit institution which legally operates in Vietnam;

- A fine ranging from VND 70,000,000 to VND 80,000,000 shall be imposed for ownership of house, or other housing transactions conducted in Vietnam with improper person or inconsistently with the prescribed conditions or in excess of the prescribed quantity, or ownership of a house located in a region where foreign organizations and individuals are not allowed to own houses;

- A fine ranging from VND 80,000,000 to VND 100,000,000 shall be imposed on a house owner that is a foreign organization for use of owned house for lease, or as a working office, or a purpose other than as an accommodation for its employees.

Nguyen Trinh

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