Housing leases for education or work purposes in other places are very common, especially in Ho Chi Minh City. The payment of the rent is one of the basic responsibilities of the lessee. So, may a lessor terminate unilaterally the lease agreement in case the lessee delays rent payment?
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Vietnam: May a lessor terminate unilaterally the lease agreement in case the lessee delays rent payment? (Illustrative photo)
Under Article 132 of the Housing Law 2014 regulating the unilateral termination of lease agreement in Vietnam:
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, Article 132 of the Housing Law 2014.
Cases where the lessor has the right to unilaterally terminate the rental house contract and reclaim the rented house are:
The lessor is entitled to terminate unilaterally the lease agreement and withdraw the house in one of following cases:
- The lessor lease out the state-owned houses or social houses ultra vires and not satisfying requirements as prescribed in this Law;
- The lessee has not paid the rent for 3 months or more without reasonable explanation;
- The lessee uses the house for improper purposes as agreed in the agreement;
- The lessee expands, renovates, or demolishes the house under lease agreement without the consent of the homeowner;
- The lessee exchanges, lends, sublets the house under lease agreement without consent of the lessor;
- 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;
- Cases prescribed in Clause 2 Article 129 of the Housing Law 2014.
Thus, according to the above regulation, if the lessee has not paid the rent for 3 months or more without reasonable explanation, the lessor is entitled to terminate unilaterally the lease agreement and withdraw the house.
However, to protect the rights of the lessee, Clause 4, Article 132 of the Housing Law 2014 stipulates that 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.
The Housing Law's provisions ensure both the legitimate rights of the lessor in collecting rent fully and on time, and allow the lessee time to find a new place to live when the lease agreement is terminated.
Thuy Tram
