Cases of terminating lease agreement in Vietnam

Cases of terminating lease agreement in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Lease term and housing rents in Vietnam

According to Article 129 of the Law on Housing 2014, the lease term and housing rents are as follows:

- The lessor and the lessee may agree about lease term, rents and payment, lump sum or installment payments; if there are any regulations on housing rent regulated by the State, the contracting parties shall comply with regulations.

- If the lessor renovates the house with consent of the lessee although the lease term does not expire, the lessor is entitled to adjust the housing rents. The new rent shall be agreed by contracting parties; if not, the lessor is entitled to unilaterally terminate the lease agreement and pay compensation to the lessee as prescribed.

- The lawful rights and interests of the lessor and the lessee shall be protected by the State over the lease term.

2. Cases of terminating lease agreement in Vietnam

Cases of terminating lease agreement in Vietnam specified in Article 131 of the Law on Housing 2014 include:

- With respect to agreements on state-owned house lease, they shall be terminated if they are subject to one of cases prescribed in Clause 1 Article 84 of the Law on Housing 2014.

- With respect to agreements on non-state-owned house lease, they shall be terminated in one of the following cases:

= The lease agreement expires; regarding the unlimited term agreement, it shall terminate after 90 days, from the day on which the lessor notify the lessee of the termination of the lease agreement;

= Both contracting parties agree to terminate the agreement;

= The house for lease no longer exists;

= The lessor does not live with anybody when he/she dies or is declared missing by the court;

= Any house for lease which is damaged, in danger of collapse or in the area subject to land withdrawal or housing clearance or demolition according to decisions issued by the competent agency; or any house for lease subject to decision on compulsory purchase order or commandeering issued by the State to use for other purposes.

The lessor must notify the lessee of the termination of the lease agreement in writing 30 days in advance as prescribed in this Clause, unless otherwise agreed;

= The agreement terminates as prescribed in Article 132 of the Law on Housing 2014

3. Cases where the lessor is entitled to terminate unilaterally the lease agreement and withdraw the house in Vietnam

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 Law on Housing 2014.

(Clause 2, Article 132 of the Law on Housing 2014)

Nguyen Ngoc Que Anh

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