Termination of Residential Lease Agreements

I. Cases for termination of residential lease agreements?

Article 171 of the Law on Housing 2023 stipulates the cases for terminating a residential lease agreement as follows:

1. For housing under public ownership:

Termination is carried out when the house falls under one of the cases for recovery (as prescribed in Clause 1, Article 127 of the Law on Housing 2023).

2. For housing not under public ownership:

Termination is carried out in one of the following cases:

a) The lease term expires; in cases where the term is not specified, the agreement terminates 90 days from the date the landlord notifies the tenant of the termination.

b) The parties agree to terminate the agreement.

c) The leased house no longer exists.

d) The tenant is an individual who dies or is declared missing by the Court, and at the time of death or disappearance, no one was living with them.

e) The tenant is an organization that is dissolved, bankrupt, or ceases operation.

f) The leased house is severely damaged with a risk of collapse, or is located in an area subject to a land recovery decision, housing clearance, or a demolition decision by a competent state authority; or the house is subject to state compulsory purchase or requisition for other purposes. In this case, the landlord must notify the tenant in writing at least 30 days prior to termination, except in cases of force majeure or otherwise agreed by the parties.

g) Cases of unilateral termination as prescribed (in Article 172 of this Law).

II. Key considerations when terminating an indefinite-term lease?

For residential lease agreements (not under public ownership) that do not specify a term, the most important legal point is the notice period before termination. Specifically, according to the Law on Housing, for an indefinite-term lease, the agreement will terminate 90 days after the landlord notifies the tenant of the termination.

Based on this regulation, combined with our previous discussions, you should note:

- Longer preparation time:

For unilateral termination (due to a breach), the statutory notice period is usually at least 30 days. However, if a landlord wants to terminate an indefinite lease (not due to a breach), the law protects the tenant by requiring a preparation period of up to 90 days from the notice date.

- Freedom of agreement:

Regardless of the 90-day rule mentioned above, an indefinite lease can still terminate immediately or at any time if both parties mutually agree to terminate.

Therefore, for a smooth termination, the landlord should issue a written notice to have a clear basis for determining the 90-day period according to the law.

III. Is a written document required for lease termination?

According to the Law on Housing 2023, whether a written document is needed depends on the reason and form of termination:

1. For indefinite-term leases:

The law stipulates termination after 90 days from the "notice." Although the word "in writing" is not mandatory in this clause, in practice, you highly need a written notice to serve as legal evidence for the 90-day countdown.

2. Mutual agreement to terminate:

The law requires all housing agreements to be in writing from the start. Thus, when parties agree to terminate, this should also be documented (usually called a Lease Liquidation Minute). This document proves that both parties have fulfilled their obligations (returning the house, payments, deposit refunds...) and have no further ties.

3. Unilateral termination:

If a party has the right to unilaterally terminate (due to the other's breach), the terminating party must notify in writing or via other forms agreed upon in the contract at least 30 days in advance.

4. Force majeure or objective events:

If the house is severely damaged, risks collapse, or is subject to land recovery/demolition, the landlord must notify in writing at least 30 days in advance.

Summary: While the law allows flexibility with "other forms as agreed," creating a written document (notice or liquidation minute) is always the safest requirement to protect your rights in case of disputes.

IV. Must the landlord refund the deposit if the tenant gives a 30-day notice?

Whether your 30-day notice results in a deposit refund depends on the reason for termination and the agreed-upon terms. According to the Civil Code 2015 and Law on Housing 2023:

1. Cases where the tenant receives a refund (or even compensation):

A 30-day notice helps you reclaim the deposit if you unilaterally terminate because the landlord is at fault (legal cases). For example: the landlord fails to repair severe damage, increases rent unreasonably, or increases rent without notice. In this case, the landlord must return the deposit and may even have to pay a penalty equivalent to the deposit (deposit penalty) unless otherwise agreed.

2. Cases where the tenant loses the deposit (despite the 30-day notice):

If the house is normal and the landlord has not breached the contract, but you voluntarily wish to move before the term expires (e.g., signing for 1 year but leaving in the 6th month), a 30-day notice will not help you get the deposit back. Legally, if the depositor (tenant) refuses to perform the contract, the deposit belongs to the receiver (landlord).

3. Cases depending on specific Contractual Agreements:

Civil law respects the freedom of agreement. If your contract states: "The tenant may terminate early with a 30-day notice and receive a 100% refund," the landlord must comply.

Conclusion: A 30-day notice alone is not enough to automatically receive a refund. You need to verify the contract's terms and the specific reason for termination.