What should be paid attention to when liquidating a rental contract?

What should be paid attention to when liquidating a rental contract?

Your lease has expired and you need to move somewhere else. Before moving out, you need to put pen to paper on the liquidation of the tenancy agreement. So what is that record and what to keep in mind when liquidating the lease.

The concept of tenancy agreement and liquidation minutes

What is a tenancy agreement?

In a nutshell, this is a written agreement between the lessor and the lessee. The lessor will hand over the house to the lessee for a certain period of time. The lessee is obligated to pay according to the original agreement. Both parties will have clear rights and obligations to perform in the contract.

Currently, the demand for renting houses is increasing day by day with many different purposes. There are people who rent office space, rent houses or rent business premises, etc. In particular, this real estate product is vibrant in centers and big cities such as Hanoi, Ho Chi Minh City, Da Nang, … These are places where people gather, convenient for studying, doing business and working.

But after a period of use, if there is no need, the lessee can negotiate to liquidate the contract. Or if the lessor needs to take back the premises, it can also do the same job. Because in the past, the rental contract was the legal measure for you. When liquidating, there are also binding documents for both parties to perform. Here are some of the issues you need to be aware of when carrying out procedures for liquidating a tenancy agreement.

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A contract is a legal document that fully records the rights and obligations of both parties

What is a tenancy agreement?

In essence, the minutes of liquidation of the lease contract are to help the lessee and the lessor determine the rights and obligations to do. Based on the terms of the lease to where, there is a problem? What are the consequences during the rental process? What separation has not been resolved and how to fix it?

Once the settlement has been determined and settled, the two parties sign the contract liquidation minutes. From there, the tenancy will end. The tenant and the lessor are no longer legally related.

Without using the liquidation minutes, the two parties will have no basis to determine that the tenancy with the original binding terms has ended. That will cause great difficulties if there is a dispute later.

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When signing the liquidation minutes, the lease contract will be terminated

Cases of liquidation of the rental contract

Both parties agree to liquidate the contract

  • The first case: When the lease contract has expired, but the customer or the owner has no need to continue renting or leasing, the house will be liquidated and handed over.
  • The second case: During the rental process, the rented house has problems such as fire, explosion, and irreparable damage. Or the ground is located in the clearance area, there is a decision to withdraw from the state agency. Or the house is requisitioned, forcibly purchased in the case prescribed by law, liquidation of the contract shall be carried out.
  • The third case: When the contract has not expired but both parties have their own reasons, they want to terminate the contract. After that, make a contract liquidation minutes.

Unilateral liquidation of the rental contract

The lessor may unilaterally terminate the contract in the following cases:

  • The lessee uses the house for the wrong purpose in the contract or does not pay the rent within 3 months.
  • The lessee arbitrarily renovates, expands, demolishes the house not according to the contract agreement
  • In the process of using the house, the lessee causes pollution and noise. Or affecting social order and social security.
  • The lessee arbitrarily leases or lends the house to others without the consent of the landlord.

The lessee may also unilaterally terminate the contract in the following cases:

  • Damage to the rental property is not caused by the lessee, but the landlord does not carry out repairs. Impact on daily life and business.
  • The increase in rent has no basis, violating the agreed contract.

Note: If unilaterally terminating the contract, the other party must be notified 30 days in advance. If damage occurs, compensation must be paid in accordance with the agreement or in accordance with the law.

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Unilateral termination of tenancy must be given 30 days in advance

Notes before signing the minutes of liquidation of the rental contract

If you are a tenant

Before making a record of liquidation of the rental contract, you need to determine the current state of the house after the lease has changed. Anything that you feel is different from the original status you should check carefully. Determine what impact that change has? Is it allowed by you or is it a violation of the original tenancy agreement?

If there is a problem there is damage or a change in the status quo without your permission or the tenancy agreement. Then, depending on the extent of the damage, you and the tenant need to have an exchange agreement that requires the tenant to restore the original condition or take compensation measures.

All of the above issues, including how the error was made and how it was resolved, must be addressed. The agreement must be completed before signing the tenancy agreement. Avoid disputes, lose the rights of the lessor later.

If you are a tenant

If the lessor unilaterally terminates the contract, you need to determine what is the reason given by the lessor? Is it reasonable, violating the terms of the original tenancy agreement? From taking into account there is an appropriate compensation plan.

In this case, there is agreement on termination and making minutes of liquidation. Then both you and the lessor must check the property together to avoid disputes. If there is a problem and there is a compensation plan, it should be made in writing. There are confirmation signatures of both parties and attached to the minutes of liquidation of the lease contract.

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Please check the house carefully before renting

Information required in the minutes of liquidation of the tenancy agreement

Information about the parties

The parties in the minutes of liquidation of the lease contract include the tenant and the lessor. The information must be clear, complete and accurate. In addition, in the case of authorizing another person to make the minutes of contract liquidation, there must be evidence to prove that this authorization is valid. At the same time, the information of the authorizer must also be clearly shown in the minutes of liquidation of the lease contract.

Information about the rental agreement

In the minutes of liquidation of the lease contract, information such as contract number and signing date must be clearly stated.

Terms

Minutes of liquidation of the lease including the date of termination of the contract. Confirmation of both parties on payment of rental costs, initial deposit. Confirmation of both parties about the condition of the house after handing over. In the event of a problem with the condition of the home or a breach of the terms of the tenancy agreement, a commitment is required. And the settlement must be agreed upon before signing the contract liquidation minutes. At the same time, it must be made in writing and attached to the contract liquidation minutes.

Effective date of liquidation minutes

This is a very important provision, the parties need to agree specifically on the effective date of the Minutes of Liquidation of the Tenancy Contract.

Here are some things to keep in mind when preparing a rental agreement. You need to have basic understanding to easily handle when needed. In addition, visit AequitasAudit.com regularly to update more useful information!

Phuong Dung – Content Writer

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