Cases of terminating lease purchase agreements and withdrawal of social housing under lease purchase agreements in Vietnam

Cases of terminating lease purchase agreements and withdrawal of social housing under lease purchase agreements in Vietnam (Internet image)

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

1. Cases of terminating lease purchase agreements and withdrawal of social housing under lease purchase agreements in Vietnam

Cases of terminating lease purchase agreements and withdrawal of social housing under lease purchase agreements in Vietnam under Article 136 of the Law on Housing 2014 are as follows:

- Regarding lease purchase transactions in state-owned social housing, the termination of lease purchase agreement and housing withdrawal shall comply with one in cases prescribed in Point a, b, c, e, g and h Clause 1 Article 84 of the Law on Housing 2014.

- With respect to agreements on non-state-owned house lease purchase, the lessor is entitled to terminate the agreement on housing lease purchase or withdraw the house under the lease purchase agreement in one of the following cases:

+ The lessee leases out or sells the house under lease purchase agreement to other people without the consent of the lessor when the lease purchase term has not expired;

+ The lessee has not paid the rents for 3 months or more without good reasons;

+ The lessee expands, renovates, or demolishes the house under lease purchase agreement without the consent of the lessor;

+ The lessee uses the house for improper purposes as agreed in the agreement;

+ The lessee is subject to cases prescribed in Point d Clause 2 Article 135 of the Law on Housing 2014;

+ Other cases as agreed by contracting parties.

- The lessee not subject to Clause 1 of Article 136 of the Law on Housing 2014 is entitled to terminate the lease purchase agreement as agreed in the agreement; if he/she has received the house, he/she must return the house to the lessor.

2. Rights and obligations of lessees under agreements on lease purchase of social housing in Vietnam

Rights and obligations of lessees under agreements on lease purchase of social housing in Vietnam under Article 135 of the Law on Housing 2014 are as follows:

- The lessee must comply with Article 62 of the Law on Housing 2014 and other obligations as specified in the agreement on housing lease purchase.

In case the lease purchase term expires but the lessee has been received the house, the lessee shall return the house to the lessor; the lessee may claim a refund of the option, except for cases prescribed in Point e and Point h Clause 1 Article 84 and Clause 2 Article 136 of the Law on Housing 2014.

- If the lessee dies, it is required to follow the procedures below:

+ If there is any lawful heir living in that house with the lessee, he/she has right to continue renting and buying the house, unless the lawful heir voluntarily returns the house under lease purchase agreement;

+ If the lessee has lawful heir(s) but they do not live together in that house, and the lessee has paid for two-thirds of the lease purchase term, the lawful heir(s) is/are entitled to pay off the total amount in proportion to one-thirds of the remaining lease purchase term and the heir(s) shall be issued the Certificated by the competent agency;

+ If there is any lawful heir not subject to Point a and Point b of Clause 2 of Article 135 the Law on Housing 2014, the lessor is entitled to withdraw the house and the lawful heir is entitled to claim the refund of option included in the interest as prescribed in inter-bank unperiodical interest rates on the day on which the option is refunded;

+ If there is not any heir, the option shall be under ownership of the State and the lessor is entitled to withdraw the house, and then enter into other lease agreement or lease purchase agreement with other entities entitled to rent or rent and purchase social housing as prescribed.

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