Note when canceling the lease prior to the term

In the process of renting a home for various reasons, it is perfectly normal to cancel the lease prior to the term. Below, Realestatevietnam sends you some notes for the lessor and the tenant in the event of termination of the contract.

For renters

Under the Consumer Protection Law (CPA), tenants will be allowed to terminate the contract and move away after 20 days notice to the landlord. However, it does not mean that the tenant can leave easily.

If the contract is in accordance with the contract, the landlord is entitled to require the tenant to cancel the contract before the expiration of the time limit for the new tenant. The lessor may face some of the lost costs such as lost rental income, commission for brokerage, rent advertising, etc.

Some other notes that the landlord needs to keep in mind is that you will not be able to keep a deposit if the lessee has notified you prior to the cancellation of the lease. Keeping a deposit on prior notice is illegal even if you have not yet found another tenant.

The tenant has the right to terminate the lease prior to the expiry date in accordance with the provisions of the law

In addition, the 2005 Civil Code also specifies this issue as follows:

“Article 498.- Unilateral termination of performance of house-leasing contracts

The lessor shall have the right to unilaterally terminate the performance of the house renting contract when the lessee commits one of the following acts:

a) Failing to pay rent for three consecutive months or more without plausible reasons;

b) Using houses not for the right purposes;

c) Intentionally causing serious damage to houses;

d) Modifying, exchanging or renting the whole or part of the rented house to other persons without the written consent of the lessor

đ) To cause disorder of the public many times and seriously affect the normal activities of the people around;

e) seriously affecting the environmental sanitation.

2. The lessee may unilaterally terminate the performance of the house renting contract when the lessor commits one of the following acts:

a) Not to repair the house when the quality of the house is seriously reduced;

b) Rising rent rates unreasonable.

c) The right to use houses is restricted due to the interests of the third party.

3. The party who unilaterally terminates the performance of the lease must notify the other party one month in advance, unless otherwise agreed. ”

You need to verify your financial ability before entering into a lease

According to this provision, the lessee also has the right to unilaterally terminate the house renting contract ahead of time. However, this unilateral termination shall be effected only if one of the three conditions specified in Paragraph 2 of Article 498 is fulfilled and the obligation of advance notice provided for in Paragraph 3 of Article 498 of the Civil Code 2005 is fulfilled. If you fail to comply with the foregoing, the lessor may claim damages under the terms of the contract.

In addition, to avoid the unilateral termination of the lease, the lessee should carefully consider the duration of the contract. At the same time, when renting, it is also important to thoroughly verify the tenant’s information, financial capacity, level of tenure.

For tenants

If a tenant has the intention of staying in the home, being terminated by the landlord and the claim made by the landlord can make it difficult for the tenant to find a home.

If the lease is for individuals, families or businesses, getting a landlord before the due date can have serious consequences. If a tenant leases large sums of money, the cost of several billions which is levied unilaterally by the lessor to terminate the contract ahead of time will cause the initial investment costs of the tenant not to be fully recovered or not collected. okay Meanwhile, compensation for breach of contract can not offset the loss of investment. At this point, the tenant will fall into misery.

Consider reasonable compensation in the lease if you invest a lot

To avoid this risk, you need to be aware of the compensation for termination of the contract before maturity. Make sure the amount of your compensation is commensurate with your investment.

If there is no specific provision in the lease agreement in which case the landlord will terminate the contract unilaterally, it will be based on the following rules.

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Section 132 of the Housing Act 2014 provides for cases where the landlord is entitled to unilaterally terminate the housing lease. In addition to this, the landlord is not allowed to unilaterally terminate the lease prior to the term.

Article 132.- Unilateral termination of performance of house-leasing contracts

1. During the house leasing term as agreed upon in the contract, the lessor shall not unilaterally terminate the house renting contract and recover the leased house, except for the cases specified in Clause 2 of this Article.
2. The house lessor may unilaterally terminate the performance of the house renting contract and recover the leased house in one of the following cases:

a) The lessors of State-owned or social-rented houses leased ultra vires or subjects not in accordance with the conditions prescribed in this Law.

b) The lessee does not pay the house rent under the agreement for 3 months or more without plausible reasons.

c) The lessee uses houses for wrong purposes as agreed upon in the contracts.

d) The tenant voluntarily demolishes, loosens, renovates or demolishes the leased houses.

đ) The lessee transforms, lends or subleases the currently rented house without the lessor’s consent.

e) The lessee causes disorder and environmental sanitation, seriously affecting the life of the surrounding people, which has been rented by the house lessor or the head of the residential quarters or the head of the hamlet or hamlet. , phum, squirrels to make a record to the third and still not fix;

g) Subject to the provisions of clause 2 of article 129 of this Law. ”

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