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A house rental contract is a common transaction in social life. Foreigners can rent a house in Vietnam for living, for establishing a business headquarters, or for use as a production facility. So, how are disputes over a rental contract with foreigners in Vietnam resolved?
Dispute over a rental contract with foreigners in Vietnam
Disputes regarding lease agreements with foreigners in Vietnam involve disagreements and conflicts over interests that arise during the execution of lease agreements with foreigners.
Disputes regarding lease agreements with foreigners in Vietnam can arise from the following reasons:
– Unclear terms in the lease agreement: The parties may have different interpretations of the contract’s content, leading to disputes.
– Either the lessor or lessee is unwilling to continue executing the lease agreement, resulting in a dispute.
– The lessor unreasonably increases the rent.
– The lessee violates legal regulations during the use of the leased property.
– The lessor fails to repair or maintain damaged or deteriorated components as agreed upon with the lessee.
– Other actions that breach the lease agreement
Verbal Rental Contract Disputes
Most rental contracts for housing nowadays are written contracts. However, there are some cases where a property is rented without signing a contract, but instead, the terms are agreed upon verbally. Therefore, when disputes arise, it can be challenging to resolve.
According to the provisions of Article 121 of the Housing Law in 2014, rental contracts for houses must be in written form with legal signatures and seals (if an organization is involved). Therefore, if the parties agree only verbally and do not sign a contract when renting a house, the verbal rental contract is considered invalid. The landlord has the right to reclaim the property that was rented, and the tenant is entitled to receive back the money they have paid in advance but have not yet used for the rented property.
In the case of verbal rental contracts, the tenant should keep the following documents and evidence to protect their rights:
Details of the deposit and advance rental payments, such as bank transfer records. For example, Mr. D deposited rental money for 123 XYZ Street, …
Correspondence or text messages exchanged between the tenant and the landlord related to the rental of the property.
Disputes over Unnotarized Rental Contracts with Foreigners in Vietnam
According to the provisions in Article 122(2) of the Housing Law in 2014, rental contracts for houses are not mandatory to be notarized. The parties involved can choose whether to notarize the contract or not. An unnotarized rental contract for a house still holds legal validity.
In case a dispute arises regarding an unnotarized rental contract, the parties can initiate legal proceedings to protect their lawful rights and interests
Jurisdiction for Resolving Rental Contract Disputes with Foreigners in Vietnam
When disputes arise regarding a rental contract, the parties can file a lawsuit in the competent People’s Court to resolve the dispute. The competent People’s Court refers to the province People’s Court where the defendant has a legal residence address.
In cases where the disputing parties are commercial legal entities and have agreed to settle the rental contract dispute through arbitration, they can file a claim with a Commercial Arbitration Tribunal. Currently, there are numerous commercial arbitration organizations available, depending on the choice of the parties involved.
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