VIETNAM Law and Practice Contributed by: Tran Thai Binh and Duong Thi Minh Han, LNT & Partners
6.19 Right to Terminate a Lease The landlord has the right to terminate the con - tract due to: • failure of payment by the tenant within three months after the due date; • the tenant’s insolvency; • the tenant’s use of the leased real estate for the wrong purpose; • the tenant deliberately causing detrimental damage to the leased real estate; • the tenant repairing, improving, upgrading, altering or sub-letting the leased real estate without agreement or written consent from the landlord; • the tenant being a nuisance or failing to main - tain public hygiene, security, etc, in a way that affects the other residents, and despite warn - ings from the local authorities; • any other event agreed by the parties. The tenant has the right to terminate the contract if the landlord: • fails to repair real estate which does not meet the safety requirements for use, or which causes harm/damage to the tenant; • increases the rent at an unreasonable rate; • limits the tenant’s right of use while limiting the rights of a third party; • if there is any breach of representation and warranties by the landlord in respect of the real estate; or • any other event agreed by the parties. 6.20 Registration Requirements A lease of land-use right and property (houses or construction building) must be executed in writ - ing following the form provided by law (if any). The lease of land-use right must be registered with the Land Registry and the tenant is entitled
to be recorded on the LURC for the lease term, as provided by law. 6.21 Forced Eviction It is not easy to evict a tenant from an estate without a court ruling or order. To do so, the landlord has to bring the case before the court and pursue litigation, which may take a signifi - cant amount of time (two to six years). However, the landlord may engage the authori - ties (representatives from the People’s Commit - tees, the police, etc) to prevent the tenant from entering the property (eg, by changing the locks, re-occupying the property, disconnecting the electricity and water supply), as a result of which the tenant may have to abandon the property. However, such measures are also controversial, and in some cases may constitute a legal viola - tion with criminal liability. 6.22 Termination by a Third Party A lease can be terminated if the land on which the property is located is subject to land expro - priation by the competent authority. See 2.9 Condemnation, Expropriation or Compulsory Purchase . On the other hand, a third party can hardly have rights against a commercial lease interest if it is not a party to the contract, unless the contrac - tual parties agree otherwise, or there is a regis - tered pledge that pre-dates the lease by which the lease can be terminated if the leased prop - erty is subject to disposal procedures following the settlement of the pledge. If the leased prop - erty is the collateral to any pledge, the lessor as the property owner is required by law to inform the lessee of the same. Otherwise, the lessor may be liable for any damages caused by the non-disclosure.
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