Cases of unilateral termination of agreements on housing management authorization in Vietnam

Cases of unilateral termination of agreements on housing management authorization in Vietnam (Internet image) 

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

1. What is housing management authorization?

The housing management authorization means the homeowner authorizes other organization or individual to exercise rights and fulfill obligations of the homeowner pertaining to management and use of housing over the duration of authorization.

The housing management is only authorized relating to existing houses.

(Clause 1, Article 155 of the Law on Housing 2014)

2. Cases of unilateral termination of agreements on housing management authorization in Vietnam

Specifically, Article 158 of the Law on Housing 2014 provides for cases where unilaterally terminating the performance of a housing management authorization contract as follows:

(1) The authorized grantor may unilaterally terminate agreements on housing management authorization in one of following cases:

- If the authorization incurs administrative expense, the authorized grantor is not required to notify the authorized grantee of the unilateral termination of the authorization agreement provided that he/she pays the authorized grantee the remuneration for the task performed by the grantee and the compensation;

- If the authorization does not incur administrative expense, the authorized grantor must notify the authorized grantee of the unilateral termination of the authorization agreement before at least 30 days, unless otherwise agreed.

(2) The authorized grantor may unilaterally terminate agreements on housing management authorization in one of following cases:

- If the authorization incurs administrative expense, the authorized grantor is not required to notify the authorized grantee of the unilateral termination of the authorization agreement but he/she must pays compensation to the authorized grantee (if any);

- If the authorization does not incur administrative expense, the authorized grantor must notify the authorized grantee of the unilateral termination of the authorization agreement before at least 30 days, unless otherwise agreed.

(3) The authorized grantor and the authorized grantee must notify the third person of the unilateral termination of the agreement on housing management authorization.

3. Entities eligible for the homeownership recognition in Vietnam

According to Article 8 of the Law on Housing 2014, entities eligible for the homeownership recognition are as follows:

(i) Vietnamese entities; overseas Vietnamese permitted to enter Vietnam;

Foreign entities prescribed in Article 160 of the Law on Housing 2014;

+ The foreign entity prescribed in Point a Clause 1 Article 159 of the Law on Housing 2014 is required to have an Investment certificate and have houses which are built under a project as prescribed in this Law and corresponding regulations of law.

+ The foreign entity prescribed in Point b Clause 1 Article 159 of the Law on Housing 2014 is required to have an Investment certificate or a Permission to run business in Vietnam (hereinafter referred to as Certificate of investment) issued by the competent agency in Vietnam.

+ The foreign entity prescribed in Point c Clause 1 Article 159 of the Law on Housing 2014 is required to have a permission to enter Vietnam and he/she is not granted diplomatic immunity and privileges as prescribed.

(ii) Entities having legitimate housing through following transactions:

- Vietnamese entities who invest in housing construction, purchase, enter into lease purchase agreements, receive gifts, receive inheritance, receive capital contribution, exchange houses, or make other transactions prescribed in regulations of law .

- Overseas Vietnamese who enter into agreements on commercial housing purchase, lease purchase with enterprises or cooperatives conducting real estate trading (hereinafter referred to as real estate enterprise);

Agreements on housing purchase, gifting, exchange, inheritance with households or individuals; agreements on residential land transfer in the project on commercial housing construction which is permitted to divide the piece of land into smaller lots/plots for sales as prescribed.

- Foreign entities who enter into agreements as prescribed in Clause 2 Article 159 of the Law on Housing 2014.

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