Thông tư 20/2016/TT-BXD

CIRCULAR

GUIDELINES FOR THE GOVERNMENT'S DECREE NO. 100/2015/NĐ-CP DATED OCTOBER 20, 2015 ON DEVELOPMENT AND MANAGEMENT OF SOCIAL HOUSING

Pursuant to the Law on Housing dated November 25, 2014;

Pursuant to the Government's Decree No. 100/2015/NĐ-CP dated October 20, 2015 on development and management of social housing;

Pursuant to the Government's Decree No. 62/2013/NĐ-CP dated June 25, 2013defining the functions, tasks, entitlements and organizational structure of the Ministry of Construction;

At the request of Director of Housing and Real Estate Market Authority;

The Minister of Construction promulgates a Decree providing guidelines for the Government's Decree No. 100/2015/NĐ-CP dated October 20, 2015 on development and management of social housing.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Circular provides guidelines for the Government's Decree No. 100/2015/NĐ-CP dated October 20, 2015 on development and management of social housing (hereinafter referred to as Decree No. 100/2015/NĐ-CP) regarding: requirements for social housing invested by households and individuals; determination of selling prices and rents for social housing; documents proving eligibility to benefit from social housing policies, sample contracts for sale, lease and lease purchase of social houses.

2. The lease, lease purchase and management of social houses specified in Clause 1 Article 53 of the Law on Housing shall comply with the Government's Decree No. 99/2015/NĐ-CP dated October 20, 2015 on guidelines for the Law on Housing and its instructional documents.

Article 2. Regulated entities

This Circular applies to organizations, households, individuals and regulatory authorities relevant to development and management of social houses specified in Article 2 of Decree No. 100/2015/NĐ-CP.

Chapter II

STANDARDS FOR SOCIAL HOUSES INVESTED BY HOUSEHOLDS AND INDIVIDUALS

Article 3. Room standards

Each room of a social house invested by a household or individual for sale, lease or lease purchase must satisfy construction quality requirements specified by construction law and the following standards:

1. The minimum usable area of a room is 10 m²; minimum usable width is 2.4 m; minimum usable height is 2.7 m.

2. A room must have a door and window to ensure ventilation and natural lighting.

3. Surrounding walls and walls separating the rooms must be made of fire resistant and waterproof materials.

4. The roof must not be covered with flammable and waterproof materials.

5. The floor must be paved with tiles or mortar and higher than the driveway, front yard or sidewalk.

6. Lighting is adequate (at least one 40W electric light for an area of 10 m²) and an electric socket for each person.

7. If the bathroom is located within the room, it must be separated from the bedroom with a wall.

8. Ensure supply of clean water according to relevant regulations and standards.

9. Fire safety equipment is available as prescribed.

10. Minimum average usable area is 5 m²/person.

11. In case of terraced social house for sale or lease purchase, each apartment must have each own bathroom. In a social house for lease, there may be a shared bathroom for more than one room as long as there are separate men’s and women’s rooms.

Article 4. Apartment and house requirements

Each social apartment or house invested by a household or individual for sale, lease or lease purchase must satisfy construction quality requirements specified by construction law and the following standards:

1. An apartment shall meet standards for closed apartments specified by construction and housing laws and has a minimum usable area of 25 m² (including the bathroom).

2. A house shall meet the standards specified in Article 3 of this Circular and has its own bathroom(s) with a minimum usable area of 25 m² (including the bathroom(s) and meet level 4 construction standards.

Article 5. Requirements for land area for construction of social houses

1. The land area for construction of a social house invested by a household or individual for sale, lease or lease purchase shall conform with construction planning and not be located in an area where construction is banned, not violate the safety corridor of any traffic, irrigation or energy work, historic or cultural site or another protected area prescribed by law; not face the threat of landslide, inundation, flooding or pollution by industrial wastes, a landfill or cemetery; not violate public land or be under dispute.

2. The construction of essential infrastructure (traffic, lighting, water supply and drainage, fire safety, hygiene works) within the land area must comply with regulations and standards of relevant law.

3. Each block shall have rules and regulations put up at a noticeable position.

Chapter III

DETERMINATION OF SELLING PRICES AND RENTS FOR SOCIAL HOUSES

Article 6. Rules for determination of selling prices and rents for social houses

1. Regarding a social house built under a project:

a) The selling price or rent for a completely built apartment or house shall be determined by the investor in accordance with the rules specified in Clause 1 through 3 Article 21 of Decree No. 100/2015/NĐ-CP;

b) The selling price or rent for an apartment is determined according to the carpet area;

c) The commercial area of a social housing project specified in Point b and c Clause 1 Article 9 of Decree No. 100/2015/NĐ-CP which is specified in the project and approved by a competent authority, for defraying investment cost, reducing the price/rent and operating cost.

The amount of profit from commercial area used for reduction of price/rent, operating cost must be specified in the financial statement of the whole project as prescribed in Point d of this Clause. Provincial Departments of Construction shall inspect this.

d) Profits from sale, lease or lease purchase of a commercial work in a social housing project shall be recorded as follows:

- If the commercial work (including housing area) is sold or leased out, the actual or estimated profit shall not be smaller than exempted land levy or land rent for the land area of such commercial work, or divided land levy or land rent for the floor area of a house (in case of sale, lease or lease purchase of 20% of housing area at commercial price).

- In consideration of the price/rent for the commercial work (including housing area) in reality, the investor shall offset the profit against the price/rent so that it is suitable for incomes of beneficiaries of social housing policies.

dd) Pursuant to Point a through d of this Clause, the investor shall determine the prices/rents and submit a proposal to the People’s Committee of the province where the project is located. If the social house has been complete and an audit of the project cost has been carried out as prescribed, the People’s Committee of the province might verify the prices/rents according to the audit report. The People’s Committee of the province shall request the Provincial Department or a local price-verifying body to verify the prices/rents proposed by the investor. The verifying body is responsible for the result and punctuality of price verification.

Within 30 days from the day on which the valid proposal is received from the investor, the verifying body shall carry out verification and send a notice of verification result to the investor which specifies its consent or necessary revisions (if any). According to the notice of verification result, the investor shall fix the prices/rents which shall not exceed the approved prices/rents.

If the verifying body does not send such notice by the deadline, the investor is entitled to fix the prices/rents proposed and sign sale/lease/lease purchase contracts with customers as long as the fixed prices/rents are sent to the Provincial Department of Construction before any contract is concluded. When a notice of verification result is issued and the contractual prices/rents are lower than the approved one, the former must not be increased; if the contractual prices/rents are higher than the approved one, the investor shall re-conclude the contracts or issue appendixes to such contracts and return the differences to buyers, tenants or buyers/tenants.

2. Regarding a social house invested by a household or individual for sale, lease or lease purchase, its price/rent shall be determined by the household or individual as long as it does not exceed the price bracket promulgated by the People’s Committee of the province. Before signing a sale/lease/lease purchase contract with a customer, the investor shall send the list of prices/rents to the Provincial Department of Construction.

The People’s Committees of provinces shall request relevant authorities to study the methods specified in Article 7 through 9 of this Circular and local market prices to develop social housing price brackets.

Article 7. Method for determination of selling prices for social houses

1. The selling price for a social house is determined according to total investment in the construction of the house, loan interest (if any), estimated profit and VAT, exclusive of maintenance cost.

2. Formula:

Where:

- Gi^B: selling price for 1 m² of usable area of a complete apartment or house at location i (VND/m²).

- T_đ: total investment in the usable area for sale (VND).

- T_dv: divided profit from commercial area in the project for the area for sale.

- L: estimated profit of the project which does not exceed 10% of investment in the area for sale (VND).

- S^B: total usable social housing area of the project, including areas of apartments and houses that are not sold by the investor (m²).

- K_i: floor coefficient of the apartment or house i, which is a weighted mean (K of a block is 1)

3. If the selling price determined according to the formula in Clause 2 of this Article is higher than or equal to the selling price of an equivalent commercial house, the investor has to reduce the selling price of the social house.

4. When selling a social house for lease, the depreciation of the house over the lease period shall be deducted from the selling price.

Article 8. Method for determination of rents for social houses

1. The rent for social house is determined according to total investment in the construction of the house, loan interest (if any), estimated profit and VAT and maintenance cost.

2. Formula:

Where:

- G_i^T: monthly rent for 1 m² of usable area of the complete apartment or house at location i (VND/m²/month).

- V_đ: divided investment in the area for lease (VND/year), which is determined according to the following formula:

+ T_đ: investment in the area for lease (VND).

+ r: profit for investment recovery decided by the investor (%/year).

+ n: number of years for investment recovery which is at least 15 years; for a social house for lease only, n is at least 20 years.

- 12: 12 months.

- L: estimated annual profit which does not exceed 15% of investment in the area for lease (VND/year).

- B_t: divided annual average maintenance cost of the area for lease (VND/year).

- T_dv: divided profit from commercial area (including commercial houses) in the project of the area for lease (VND/year).

- S_i^T: usable area of the apartment or house for lease at location i (m²).

- K_i: floor coefficient of the apartment or house i, which is a weighted mean (K of a block is 1).

3. If the rent determined according to the formula in Clause 2 of this Article is higher than or equal to the selling price of an equivalent commercial house, the investor has to reduce the rent.

Article 9. Method for determination of payments for lease purchase of social houses

1. The payments lease purchase of a social house is determined according to total investment in the construction of the house, loan interest (if any), estimated profit and VAT, exclusive of maintenance cost.

2. Formula:

Where:

- Gi™: monthly payment for 1 m² of the complete apartment of house at location i (VND/m²/month).

- Ai: ratio of remaining value of the apartment or house at location i (exclusive of first instalment) to initial value of such apartment or house (A < 1)="" according="" to="" the="" lease="" purchase="">

- V_đ: divided total investment in the project of the area for lease purchase by year (VND/year), which is determined according to the following formula:

+ T_đ: investment in the usable area for lease purchase (VND).

+ r: annual profit for investment recovery decided by the investor (%/year).

+ n: lease purchase period agreed between the seller and the buyer/tenant which is at least 05 years.

- L: estimated annual profit which does not exceed 15% of investment in the area for lease purchase (VND/year).

- T_dv: divided profit from commercial area (including commercial houses) in the project of the area for lease purchase (VND/year).

- Si™: usable area of the apartment or house for lease purchase at location i (m²).

- K_i: floor coefficient of the apartment or house i, which is a weighted mean (K of a block is 1).

3. If the monthly payment determined according to the formula in Clause 2 of this Article is higher than or equal to that of an equivalent commercial house, the investor has to reduce the initial monthly payment.

Chapter IV

DOCUMENTS PROVING ELIGIBILITY FOR SUPPORT POLICIES AND SAMPLE CONTRACTS FOR SALE, LEASE AND LEASE PURCHASE OF SOCIAL HOUSES

Article 10. Documents proving eligibility to benefit from social housing policies

1. Where the buyer, tenant or buyer/tenant of a social house is a household or individual:

a) An application for purchase, lease or lease purchase of the house according to Template No. 01 in Appendix I enclosed herewith.

Where a social house that was purchased or lease-purchased is resold as prescribed in Clause 5 Article 19 of Decree No. 100/2015/NĐ-CP to an eligible buyer, tenant or buyer/tenant of social houses, the application submitted by the rebuyer must bear the certification of the Provincial Department of Construction that the rebuyer has not received any benefits from social housing policies.

b) Confirmations of eligibility:

- The entities specified in Point a Clause 1 Article 22 of Decree No. 100/2015/NĐ-CP shall submit form No. 02 in Appendix I enclosed herewith.

- The entities specified in Point b Clause 1 Article 22 of Decree No. 100/2015/NĐ-CP shall submit form No. 03 in Appendix I enclosed herewith.

- The entities specified in Point c Clause 1 Article 22 of Decree No. 100/2015/NĐ-CP shall submit form No. 04 in Appendix I enclosed herewith.

- The entities specified in Point dd Clause 1 Article 22 of Decree No. 100/2015/NĐ-CP shall submit form No. 05 in Appendix I enclosed herewith.

c) Documents proving residence and social insurance payment are specified in Clause 2 Article 22 of Decree No. 100/2015/NĐ-CP.

d) Documents proving income adequacy:

- The entities specified in Point a Clause 3 Article 22 of Decree No. 100/2015/NĐ-CP shall submit form No. 03 in Appendix I enclosed herewith.

- The entities specified in Point a Clause 3 Article 22 of Decree No. 100/2015/NĐ-CP who have resigned and the entities specified in Point b Clause 3 of Article 22 shall submit form No. 06 in Appendix I enclosed herewith (certification not required).

- An entity specified in Point a Clause 3 Article 22 of Decree No. 100/2015/NĐ-CP who has obtained a certification of eligibility to benefit from social housing policies before the effective date of this Circular but has not obtained a certification of income adequacy shall submit form No. 07 in Appendix I enclosed herewith.

2. The entities specified in Point d Clause 1 Article 22 of Decree No. 100/2015/NĐ-CP shall submit form No. 08 in Appendix I enclosed herewith.

3. A household or individual that takes a loan to build, renovate or repair a house for residential purpose shall submit:

a) An application for loan prescribed by the lending bank;

b) A certification of eligibility, housing status and income adequacy specified in Point b and d Clause 1 of this Article.

c) Documents proving current residence: Certified true copy of the residence book in the province where the piece of land for construction, renovation or repair of the house is located.

4. Documents specified in Clause 1 through 3 of this Article have to be certified and shall be valid for 02 years. After the aforementioned 2-year period, another certification is required if the applicant has not received benefits from social housing policies and wishes to buy, lease or lease purchase another social house or take another loan for construction, renovation or repair of a house for residential purpose.

5. The documents specified in this Article may be changed or replaced by the People’s Committees of provinces as long as information about the applicant, certifying body and contents requiring certification is sufficient.

Article 11. Contracts for sale, lease and lease purchase of social houses

1. A contract for sale, lease or lease purchase of a social house shall contain:

a) Names and addresses of the parties;

b) Information about the house;

c) Price or rent;

d) Method of payment and payment time;

dd) Transfer time;

e) Warranty clause;

g) Rights and obligations of the parties;

h) Commitments of the parties;

i) Contract termination clause;

k) Other arrangements;

l) Dispute settlement;

m) Contract effect;

2. If the social house is an apartment, apart from the information specified in Clause 1 of this Article, the contract must specify the private area and shared area of the investor and the buyer, tenant or buyer/tenant, apartment area, usable area (carpet area) which is the basis for price/rent calculation; maintenance cost, operating cost and rules for adjustments thereto before an apartment building management board is establishment.

3. Sample contracts are provided in Appendix II enclosed herewith.

4. The sample contracts provided are for reference only. The parties may revise the content of the sample contract as long as mandatory information specified in Clause 1 and Clause 2 of this Article is provided and the contract does not contravene civil laws and housing laws.

Chapter V

IMPLEMENTATION

Article 12. Responsibility of the People’s Committees of provinces

1. Perform the tasks related to development and management of local social housing specified in the Law on Housing, Article 30 of Decree No. 100/2015/NĐ-CP and Clause 2 through 6 of this Article.

2. Establish criteria for selection of entities eligible to buy, lease and lease purchase local social housing in accordance with Clause 3 Article 23 of Decree No. 100/2015/NĐ-CP.

3. Provide instructions and partially or fully cover the cost of investment in infrastructure of social housing project to reduce the prices/rents depending on conditions of the province; provide instructions on punctual verification of prices and rents for local social housing projects; promulgate price and rent brackets as prescribed in Clause 2 Article 6 of this Circular.

4. Instruct the Departments of Construction, the People’s Committees of districts and communes and relevant agencies to grant certifications of eligibility to benefit from social housing policies as prescribed.

5. Provide guidelines for implementation of social housing laws, inspection of implementation of social housing laws and impose penalties or request competent authorities to impose penalties for violations against social housing laws.

6. Instruct relevant authorities to submit annual, biannual and ad hoc reports on development and management of local social hosing to the Ministry of Construction.

Article 13. Responsibility of Provincial Departments of Construction

1. Perform the tasks related to development and management of local social housing specified in the Law on Housing, Decree No. 100/2015/NĐ-CP and those given by the People’s Committees of provinces specified in Clause 2 through 4 of this Article.

2. Take charge and cooperate with local authorities in establishing criteria for selection of entities eligible to buy, lease and lease purchase local social housing in accordance with Clause 2 and Clause 3 Article 23 of Decree No. 100/2015/NĐ-CP; provide guidance for economic sectors, households and individuals on investment in construction of social house for sale, lease and lease purchase in accordance with law and local conditions.

3. Carry out inspections and impose penalties or request competent authorities to impose penalties for violations against social housing laws.

4. Submit biannual, annual and ad hoc reports on local social housing to the People’s Committees of provinces and the Ministry of Construction according to template No. 12 in Appendix III enclosed herewith.

Article 14. Transition clause

An entity that has registered for purchase, lease, or lease purchase of a social house and is required to submit documents proving income adequacy specified in Clause 3 Article 22 of Decree No. 100/2015/NĐ-CP but has not signed a sale, lease or lease purchase contract when this Circular comes into force shall submit form No. 06 and form No. 07 in Appendix I enclosed herewith.

Article 15. Effect

1. This Circular comes into force from August 15, 2016.

2. Circular No. 08/2014/TT-BXD dated May 23, 2014 providing guidelines for the Government's Decree No. 188/2013/NĐ-CP dated November 20, 2013 on social housing development and management is annulled from the effective date of this Circular.

3. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Construction for consideration./.

APPENDIX II

SAMPLE CONTRACTS

Template No. 09: Sample contract for sale of social houses invested by the private sector

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

[Location and date]

SOCIAL HOUSING SALE CONTRACT

No. ……….. /HĐ

Pursuant to the Civil Code;

Pursuant to the Law on Housing dated November 25, 2014;

Pursuant to the Government's Decree No. 100/2015/NĐ-CP dated October 20, 2015 on development and management of social housing;

Circular No. 20/2016/TT-BXD dated June 30, 2016 providing guidelines for implementation of the Government's Decree No. 100/2015/NĐ-CP dated October 20, 2015 on social housing development and management;

In consideration of the application dated … submitted by Mr./Ms. …

Pursuant to 42 ………………………………………………………………………………………

Both parties:

THE SELLER:

- Name of organization 43: ……………………………………………………………………

- Full name44: ………………………………………………………………………………………

- ID number45 (or passport number or servicemen’s card number) …………………. issued on ………. by ………………………………………………………….

- Mailing address: …………………………………………………………………………………

- Permanent residence address: …………………………………………………………………

- Tel: …………………………………………… Fax (if any): ……………………………….

- Bank account number. …………………………….  at: ………………………………………

- TIN: ……………………………………………………………………………………………

THE BUYER:

- Mr./Ms.46: ………………………………………………………………………………………

- ID number (or passport number or servicemen’s card number) …………………. issued on ………. by ………………………………………………………….

- Permanent or temporary residence address: ..…………………………………………….

- Mailing address: …………………………………………………………………………………

- Tel: …………………………………………… Fax (if any): ……………………………….

- Bank account number. …………………………….  at: ………………………………………

- TIN: ……………………………………………………………………………………………

We have agreed to conclude a social housing sale contract with the following contents:

Article 1. Information about the house

1. Type (apartment or detached house): ………………………………………………..

2. Address: ………………………………………………………………………………………

3. Usable area (carpet area) ……………… m²

4. Information about private area and shared area (for apartments):
………………………………………………………………………

5. Associated equipment: …………………………………………………….

6. Land information: ………………………………………………………………………….

(A map and floor plan are enclosed with this Contract)

Article 2. Selling price, method of payment and payment time

1. Selling price: ………………………………………. VND

(In words: ………………………………………………………………………………………).

This price is inclusive of VAT.

2. 2% maintenance cost 47 : ……………………………. VND.

(In words: ………………………………………………………………………………………).

3. Total contract value …………………………….. VND

(In words: ………………………………………………………………………………………).

4. Method of payment: in VND (in cash or wire transfer)

……………………………………………………………………………………………………

5. Payment time:

a) A lump sum shall be paid on ……… (or within ……… days from the day on which this Contract is concluded).

b) Payment by instalments:

- The first instalment shall be paid on ……… (or within ……… days from the day on which this Contract is concluded).

- The second instalment shall be paid on ……… (or within ……… days from the day on which the first instalment is paid).

- ……………………………………………

Before each instalment, the Seller shall send a written notice (by tax, by post, etc.) to the Buyer which specifies the amount and deadline for payment from the receipt of the notice.

If the Buyer has not obtained a land use right certificate, the Seller must not collect more than 95% of the contract value. The remaining amount shall be paid after a competent authority issues the land use right certificate.

6. Operating cost and rules for adjusting the operating cost before an apartment building management board is established48.

Article 3. Transfer time

1. The Seller shall transfer the house as well as associated equipment and legal documents specified in Article 1 of this Contract to the Buyer within … days from the day on which the Buyer finishes paying for the house as prescribed by law, unless otherwise agreed by both parties. The transfer must be made into a written record bearing the signatures of both parties.

2. Other arrangements.

Article 4. Warranty clause

1. The Seller shall provide warranty on the house in accordance with the Law on Housing.

2. The Buyer must promptly notify the Seller in writing of any damage to the house covered by warranty. Within … days from the day on which the Buyer’s notification is received, the Seller shall repair the damage. The Seller shall pay compensation for any damage to the Buyer because of the Seller’s delay in making repair.

3. Damage caused by a natural disaster, foreign hostility or the user is not covered by warranty.

4. After the warranty period specified in the Law on Housing, the Buyer is responsible for repairing the damage to the house.

5. Other arrangements.

Article 5. Rights and obligations of the Seller

1. The Seller is entitled to:

a) Request the Buyer to fully pay for the house in accordance with Article 2 of this Contract;

b) Request the Buyer to receive the house in accordance with Article 3 of this Contract;

c) Request the Buyer to fulfill financial obligations related to the sale of the house as prescribed by law;

d) Exercise other rights permissible by law.

2. The Seller shall:

a) Transfer the house and legal documents to Buyer in accordance with Article 3 of this Contract;

(In case of sale of a off-the-plan house, the Buyer shall build the house in accordance with design and the list of exterior and interior materials agreed by both parties, inform the Buyer of the construction progress and complete the construction on schedule; enable the Buyer to inspect the construction at request).

b) Repair damage covered by warranty for the Buyer in accordance with Article 4 of this Contract;

c) Protect the status quo and associated equipment of the house before it is transferred to the Buyer;

d) Pay land levy, other fees and charges related to the sale of the house as prescribed by law;

dd) Follow procedures for obtaining the land use right certificate for the Buyer, unless otherwise agreed by both parties;

e) Pay compensation for damage caused by the Seller;

g) Fulfill other obligations permissible by law.

Article 6. Rights and obligations of the Buyer

1. The Buyer is entitled to:

a) Request the Seller to transfer the house and legal documents in accordance with Article 3 of this Contract.

(In case of a off-the-plan house, the Buyer is entitled to request the Seller to build the house in accordance design, adhere to the schedule and materials agreed by both parties);

b) Request the Seller to cooperate and provide relevant documents necessary for obtainment of the land use right certificate (if the Buyer has to obtain the certificate);

c) Request the Seller to repair damaged covered by warranty in accordance with Article 4 of this Contract; pay compensation for failure to adhere to the schedule, quality or other agreements in the Contract;

d) Exercise other rights permissible by law.

2. The Buyer shall:

a) Fully pay for the house in accordance with Article 2 of this Contract;

b) Receive the house and legal documents in accordance with this Contract;

c) Fully pay taxes, fees and charges related to the sale of the house to the State as prescribed by law;

d) Fulfill other obligations permissible by law.

Article 7. Responsibility of the parties for breach of contract

Both parties shall agree upon their responsibility (such as imposition of fine, interest, etc.) for breach of contract in case where the Buyer pays for the house or receives the house behind schedule or the Seller transfers the house behind schedule.

Article 8. Transfer of rights and obligations

1. The Buyer is entitled to transfer, mortgage, sublet, gift and otherwise transfer the house after the Certificate is granted to the apartment.

2. Where the Buyer wishes to resell the house before the end of 5-year period from the day on which the house is fully paid for to another buyer other than the investor that is eligible to buy, lease or lease purchase social houses as specified in Article 49 of the Law on Housing, the Provincial Department of Construction shall issue a certification of eligibility and allow the investor to conclude a contract with such eligible buyer.

3. In both cases specified in Clause 1 and Clause 2 of this Article, the buyers have all the rights and obligations specified in this Contract.

Article 9. Commitments of both parties and dispute settlement

1. Both parties are committed themselves to adhere to terms and conditions of this Contract. Dispute over this Contract, if any, shall be settled by both parties through negotiation.  If the dispute cannot be settled through negotiation, either party is entitled to request a court to settle the case as prescribed by law.

2. Other commitments.

Article 10. Contract termination clause

This Contract shall be terminated in the following cases:

1. Both parties agree in writing to terminate the Contract. In this case, both parties shall agree upon conditions and deadline for contract termination.

2. The Buyer fails to pay for the house after … days/months after the deadline specified in Article 2 of this Contract.

3. The Seller fails to transfer the house after … days/months after the deadline specified in Article 3 of this Contract.

4. Other arrangements.

Article 11. Other arrangements.

(All arrangements in this Contract must be conformable with law).

1 ………………………………

2 ………………………………

Article 12. Effect of contract

1. This Contract comes into force from …………………………..

2. This Contract is made into … copies that have equal value; each party shall keep … copy(ies), … copy(ies) shall be retained by the tax authority, … copy(ies) by the notary’s office or authenticating body (if any) and .... copy(ies) by the issuer of the Certificate.

Template No. 10: Sample contract for lease of social houses invested by the private sector

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

[Location and date]

SOCIAL HOUSING LEASE CONTRACT

No. ……….. /HĐ

Pursuant to the Civil Code;

Pursuant to the Law on Housing dated November 25, 2014;

Pursuant to the Government's Decree No. 100/2015/NĐ-CP dated October 20, 2015 on development and management of social housing;

Circular No. 20/2016/TT-BXD dated June 30, 2016 providing guidelines for implementation of the Government's Decree No. 100/2015/NĐ-CP dated October 20, 2015 on social housing development and management;

In consideration of the application dated … submitted by Mr./Ms. …

Pursuant to 49 ……………………………………………………………………………………

Both parties:

THE LANDLORD:

- Name of organization50: ………………………………………………………………………

- Full name51: ……………………………………………………………………………………

- ID number52 (or passport number or servicemen’s card number) …………………. issued on ………. by ………………………………………………………….

- Mailing address: ………………………………………………………………………………

- Permanent residence address: ………………………………………………………………

- Tel: …………………………………………… Fax (if any): ……………………………….

- Bank account number. …………………………….  at: ……………………………………

- TIN: ……………………………………………………………………………………………

THE TENANT:

- Name of organization53: ……………………………………………………………………

- Legal representative54: ………………………………………………………………….

- Mr./Ms.55: …………………………………………… is the representative of …………………………….  who is(are) tenant(s) of the house and enumerated in Appendix A enclosed herewith (if any).

- ID number56 (or passport number or servicemen’s card number) …………………. issued on ………. by ………………………………………………………….

- Mailing address: …………………………………………………………………………………

- Permanent or temporary residence address: ..……………………………………………….

- Tel: ……………………………………………………………………………………………..

We have agreed to conclude a social housing lease contract with the following contents:

Article 1. Information about the house

1. Type (apartment or detached house): ………………………………………………..

2. Address: ………………………………………………………………………………………

3. Usable area (carpet area) ……………… m²

4. Information about private area and shared area (for apartments): ………………………………………………………………………

5. Associated equipment: …………………………………………………….

6. Land information: ………………………………………………………………………….

(A map and floor plan are enclosed with this Contract)

Article 2. Rent, method of payment and payment time

1. Rent: ………………………………………. VND/month

(In words: ………………………………………………………………………………………).

(This rent is inclusive of VAT and maintenance cost).

2. Method of payment: in VND (in cash or wire transfer)57:
……………………………………………………………………

3. Payment deadline: … of every month.

4. Operating cost, payment for electricity and water supply, telephone and other services shall be paid by the Tenant to service providers. These amounts shall not be included in the rent specified in Clause 1 of this Article.

The Tenant shall pay the operating cost and other costs by the deadlines agreed with corresponding service providers.

Article 3. Transfer time and lease term

1. Transfer time:

2. The lease term58 is .... years (agreed by both parties beginning from …

Three months before the contract expiration, if the Tenant wishes to keep leasing the house, the Tenant shall submit a request for renewal of the lease contract to the Landlord. The Landlord shall consider the request, the Tenant’s eligibility to lease social houses, and request the Tenant to sign a contract renewal appendix (Appendix B enclosed with). If the Tenant is no longer eligible according to Clause 2 Article 1 of this Contract or does not wish to renew the Contract, both parties shall terminate the Contract and the Tenant shall return the house to the Landlord by the deadline specified in this Contract.

Article 4. Rights and obligations of the Landlord

1. The Landlord is entitled to:

a) Request the Tenant to use the house properly and adhere to regulations on management and use of houses for lease;

b) Request the Tenant to fully and punctually pay the rent and other costs to service providers (if any);

c) Request the Tenant to repair and pay compensation for damage caused by the Tenant;

d) Terminate the lease contract in the cases specified in Article 6 of this Contract;

dd) Exercise other rights permissible by law.

2. The Landlord shall:

a) Transfer the house to the Tenant on schedule in accordance with Clause 1 Article 3 of this Contract;

b) Make regulations on management and use of the house known to the Tenant;

c) Manage the houses for lease in accordance with housing laws;

d) Notify the Tenant of changes to the rent and operating cost at least 01 month before application;

dd) Renew the lease contract if the Tenant is still eligible and wishes to keep leasing the house;

e) Comply with decisions made by competent authority regarding the house and settlement of disputes over this Contract;

g) Inform the Tenant of the contract termination time in case of contract termination;

h) Fulfill other obligations permissible by law.

Article 5. Rights and obligations of the Tenant

1. The Tenant is entitled to:

a) Receive the house in accordance with Clause 1 Article 3 of this Contract;

b) Request the Landlord to repair the damage that is not caused by the Tenant;

c) Have the lease contract renewed if the Tenant is still eligible and wishes to keep leasing the house;

d) Exercise other rights permissible by law.

2. The Tenant shall:

A) Fully and punctually pay the rent;

b) Fully and punctually pay the operating cost and other costs to service providers while leasing the house;

c) Use the house properly; repair and pay compensation for damage caused by the Tenant;

d) Not repair, renovate or rebuild the house; comply with regulations on management and use of housing, decisions made by competent authority regarding the house and settlement of disputes over this Contract;

dd) Not transfer the lease contract or allow another person to use the house in any shape or form;

e) Comply with regulations on hygiene, security and order in the neighborhood;

g) Return the house to the Landlord in case of contract termination specified in Article 6 of this Contract within … days from the day on which the Tenant receives the Landlord’s notification.

h) Fulfill other obligations permissible by law.

Article 6. Contract termination clause

This Contract shall be terminated in the following cases:

1. The contract termination is agreed by both parties.

2. The Tenant is no longer eligible or no longer wishes to lease the house.

3. The Tenant dies while living alone in the house.

4. The Tenant fails to pay the rent for three consecutive months without an acceptable explanation.

5. The Tenant repairs the house or changes its structure without permission.

6. The Tenant sublets the house or allows another person to use the house without permission.

7. The house is seriously damaged and likely to collapse, thus the Tenant has to move out under a decision made by a competent authority; the house is located in a land area that is subject to withdrawal or land clearance, or a competent authority issues a decision on dismantlement of the house.

8. Either party terminates this Contract according to agreements therein (if any) or as prescribed by law.

Article 7. Responsibility of the parties for breach of contract

Both parties shall specify cases of breach of contract and responsibility of each party.

Article 8. Commitments of both parties and dispute settlement

1. Both parties are committed themselves to adhere to terms and conditions of this Contract. New issues that arise during the implementation of this Contract shall be made into appendices to this contract which have equal value as the contract.

2. Where the Tenant wishes to terminate the Contract ahead of schedule, both parties shall issue a premature contract termination record. When the Contract is terminated, both parties shall fulfill their obligations under this Contract; the Tenant shall return the house to the Landlord within … days from the day on which the contract termination record is signed.

4. Dispute over this Contract, if any, shall be settled by both parties through negotiation.  If the dispute cannot be settled through negotiation, either party is entitled to request a court to settle the case as prescribed by law.

5. Other commitments.

Article 9. Other arrangements.

(All arrangements in this Contract must be conformable with law).

1 …………………………..

2 …………………………..

Article 10. Effect of contract

1. This Contract comes into force from …………………………..

2. This Contract is valid for … years from the conclusion date. This Contract has … pages and is made into 03 copies with equal value; 01 copy shall be kept by each party and 01 copy by the housing authority./.

APPENDIX A

Residents under lease contract No. … dated … :

Note: Only enumerate residents aged 18 or over. This Appendix has to bear the seal of the Landlord.

Appendix B. LEASE CONTRACT RENEWAL

On … , both parties hereby agree to sign an appendix to renew the lease contract No. … dated … with the following contents

1. Residents:

- Full name59: ………………………………….. ID number: ………………. Relationship: ………………………..

- Full name: ………………………………….. ID number: ………………. Relationship: ………………………..

- Full name: ………………………………….. ID number: ………………. Relationship: ………………………..

- Full name: ………………………………….. ID number: ………………. Relationship: ………………………..

…………………………………………………

2. Rent:

The rent 60 is ……………………………………… VND/month

 (In words: ………………………………………………. VND/month).

This rent is applied from …

3. Lease term:

The lease term is … months (years) beginning from …

4. Commitments of parties

a) Other contents in the lease contract No. … dated are still effective until the expiration date specified in this Appendix.

b) The residents enumerated in this Appendix and the Tenants may exercise the rights and fulfill the obligations specified in the lease contract No. … dated …

c) This Appendix comes into force from the day on which it is signed by both parties and is made into 03 copies; 01 copy shall be kept by each party and 01 copy by the housing authority./.

Template No. 11: Sample contract for lease purchase of social houses invested by the private sector

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

[Location and date]

SOCIAL HOUSING LEASE PURCHASE CONTRACT

No. ……….. /HĐ

Pursuant to the Civil Code;

Pursuant to the Law on Housing dated November 25, 2014;

Pursuant to the Government's Decree No. 100/2015/NĐ-CP dated October 20, 2015 on development and management of social housing;

Circular No. 20/2016/TT-BXD dated June 30, 2016 providing guidelines for implementation of the Government's Decree No. 100/2015/NĐ-CP dated October 20, 2015 on social housing development and management;

In consideration of the application dated … submitted by Mr./Ms. …

Pursuant to 61 ……………………………………………………………………………………

Both parties:

THE LANDLORD/SELLER:

- Name of organization62: ……………………………………………………………………

- Full name63: ……………………………………………………………………………………

- ID number64 (or passport number or servicemen’s card number) …………………. issued on ………. by ………………………………………………………….

- Mailing address: ………………………………………………………………………………

- Permanent residence address: ………………………………………………………………

- Tel: …………………………………………… Fax (if any): ……………………………….

- Bank account number. …………………………….  at: ……………………………………

- TIN: ……………………………………………………………………………………………

THE TENANT/BUYER:

- Mr./Ms.65: ………………………………………………………………………………………

- ID number (or passport number or servicemen’s card number) …………………. issued on ………. by ………………………………………………………….

- Permanent or temporary residence address: ..……………………………………………

- Mailing address: ………………………………………………………………………………

- Tel: …………………………………………… Fax (if any): ……………………………….

- Bank account number. …………………………….  at: ……………………………………

- TIN: ……………………………………………………………………………………………

We have agreed to conclude a social housing lease purchase contract with the following contents:

Article 1. Information about the house

1. Type (apartment or detached house): ………………………………………………..

2. Address: ………………………………………………………………………………………

3. Usable area (carpet area) ……………… …………………..m2

4. Information about private area and shared area (for apartments):
………………………………………………………………………

5. Associated equipment: …………………………………………………….

6. Land information: ………………………………………………………………………….

(A map and floor plan are enclosed with this Contract)

Article 2. Price and rent, method of payment and payment time

1. Gross sales price: ………………………………………. VND

(In words: ……………………………………………………………).

This price is inclusive of VAT.

2. 2% maintenance cost 66: ……………………………. VND.

(In words: ……………………………………………………………).

3. Total contract value …………………………….. VND

(In words: ……………………………………………………………).

4. Method of payment:

a) First instalment upon contract conclusion (from 20% - 50% of the value of the house): ……………………………………….. VND

(In words: ……………………………………………………………).

b) Monthly rent: ………………………………………. VND/month.

(In words: ……………………………………………………………).

c) Method of payment: in VND (in cash or wire transfer): ……………………………………………………………………

5. Operating cost, payment for electricity and water supply, telephone and other services shall be paid by the Tenant/Buyer to service providers. These amounts shall not be included in the lease purchase price specified in Clause 1 of this Article.

If the Tenant/Buyer has not obtained a land use right and house ownership certificate, the Landlord/Seller must not collect more than 95% of the contract value. The remaining amount shall be paid after a competent authority issues the land use right certificate.

Article 3. Transfer time and lease term

1. The house shall be transferred on … (or within … days/months from the contract conclusion date).

2. The lease term is .... years/months from … to …

(The lease term shall be agreed upon by the parties and shall not be shorter than 05 years from the contract conclusion date).

3. If the Tenant/Buyer has fulfill all obligations to the Landlord/Seller after the time specified in Clause 2 of this Article, the Landlord/Seller shall follow procedures for obtaining the land use right certificate for the Tenant/Buyer.

Article 4. Warranty clause

1. The Landlord/Seller shall provide warranty on the house in accordance with the Law on Housing.

2. The Tenant/Buyer must promptly notify the Landlord/Seller in writing of any damage to the house covered by warranty. Within … days from the day on which the Tenant/Buyer’s notification is received, the Landlord/Seller shall repair the damage. The Landlord/Seller shall pay compensation for any damage to the Tenant/Buyer because of the Landlord/Seller’s delay in making repair.

3. Damage caused by a natural disaster, foreign hostility or the user is not covered by warranty.

4. After the warranty period specified in the Law on Housing, the Tenant/Buyer is responsible for repairing the damage to the house.

5. Other arrangements.

Article 5. Rights and obligations of the Landlord/Seller

1. The Landlord/Seller is entitled to:

a) Request the Tenant/Buyer to use the house properly and adhere to regulations on management and use of houses for lease purchase;

b) Request the Tenant/Buyer to fully and punctually pay the rent;

c) Request the Tenant/Buyer to repair and pay compensation for damage caused by the Tenant/Buyer;

d) Terminate the lease purchase contract in any of the cases specified in Article 7 of this Contract or the Law on Housing.

dd) Exercise other rights permissible by law.

2. The Landlord/Seller shall:

a) Transfer the house to the Tenant/Buyer on schedule in accordance with Clause 1 Article 3 of this Contract;

b) Make regulations on management and use of the house known to the Tenant/Buyer;

c) Manage the houses for lease purchase in accordance with housing laws;

d) Notify the Tenant/Buyer in writing of changes to the gross sales price, rent and operating cost at least 01 month before application;

dd) Inform the Tenant of the contract termination time in case of contract termination;

e) Instruct the Tenant/Buyer to implement regulations on resident management, security, and hygiene;

g) Obtain the Certificate for the Tenant/Buyer when the lease purchase period expires and the Buyer has fully paid for the house as prescribed in this Contract;

h) Comply with decisions made by competent authority regarding the house and settlement of disputes over this Contract;

k) Fulfill other obligations permissible by law.

Article 6. Rights and obligations of the Tenant/Buyer

1. The Tenant/Buyer is entitled to:

a) Request the Landlord/Seller to transfer the house in accordance with Clause 1 Article 3 of this Contract;

b) Request the Landlord/Seller to repair the damage that is not caused by the Tenant;

c) Request the Landlord/Seller to obtain the Certificate when the lease purchase period expires and the Tenant/Buyer has fully paid for the house as prescribed in this Contract;

d) Dispose of the house after 05 years from the day on which it is fully paid for and a Certificate is obtained;

dd) Exercise other rights permissible by law.

2. The Tenant/Buyer shall:

a) Fully and punctually pay the first instalment and monthly rent in accordance with Article 2 of this Contract; pay operating cost and other costs to service providers while leasing the house;

b) Use the house properly, protect the house and repair the damage caused by the Tenant/Buyer;

c) Comply with housing regulations and decisions made by competent authority regarding the house and settlement of disputes over this Contract;

d) Not transfer the house in any shape or form before the lease purchase term expires;

dd) Comply with regulations on hygiene, security and order in the neighborhood;

e) Pay compensation for damage caused by the Seller;

g) Return the house to the Landlord/Seller within … days from the day on which the lease purchase contract is terminated according to Article 7 of this Contract or other cases prescribed by law;

h) Fulfill other obligations permissible by law.

Article 7. Contract termination clause

This Contract shall be terminated in any of the following cases:

1. The contract termination is agreed by both parties.

2. The Tenant/Buyer dies without a legal inheritor or the Tenant/Buyer has a legal inheritor but dies before two thirds of the lease purchase contract.

Where the Tenant/Buyer has a legal inheritor but dies before two thirds of the lease purchase period, such legal inheritor shall receive 20% of the instalment paid by the Tenant/Buyer according to Point a Clause 4 Article 2 of this Contract (with an interest at demand interest rate applied by a commercial bank at that time).

3. The Tenant/Buyer fails to pay the rent for three consecutive months without an acceptable explanation.

4. The Tenant/Buyer repairs the house or changes its structure without permission.

5. The Tenant/Buyer sublets the house without permission.

6. The house is seriously damaged and likely to collapse, thus the Tenant has to move out under a decision made by a competent authority; the house is located in a land area that is subject to withdrawal or land clearance, or a competent authority issues a decision on dismantlement of the house.

Article 8. Responsibility of the parties for breach of contract

Both parties shall specify the cases of breach of contract and their responsibility in accordance with law.

Article 9. Commitments of both parties and dispute settlement

1. Both parties are committed themselves to adhere to terms and conditions of this Contract. New issues that arise during the implementation of this Contract shall be made into an appendix to this Contract. The appendix has the same legal value as the Contract.

2. Dispute over this Contract, if any, shall be settled by both parties through negotiation.  If the dispute cannot be settled through negotiation, either party is entitled to request a court to settle the case as prescribed by law.

3. Other commitments.

Article 10. Other arrangements.

(All arrangements in this Contract must be conformable with law).

1. ………………………………….

2. …………………………………..

Article 11. Effect of contract

1. This Contract comes into force from …………………………..

2. This Contract is valid for … years from the conclusion date. This Contract has … pages and is made into 03 copies with equal value; 01 copy shall be kept by each party and 01 copy by the housing authority./.

APPENDIX

Residents under lease contract No. … dated … :

Note: Only enumerate residents aged 18 or over. This Appendix has to bear the seal of the Landlord/Seller.