Chapter XXIX
CONTRACTS FOR LAND USE RIGHT LEASE, SUBLEASE
Section 1. CONTRACTS FOR LAND USE RIGHT LEASE
Article 703.- Contracts for land use right lease
A contract for land use right lease is an agreement between parties whereby the lessor shall transfer the land to the lessee for use in a period of time, and the lessee must use such land for the right purpose, pay the rent and return the land when the lease term expires as provided for by this Code and the land law.
Article 704.- Contents of contracts for land use right lease
A contract for land use right lease shall contain the following contents:
1. Names and addresses of the parties;
2. Rights and obligations of the parties;
3. Category, grade, acreage, location, code number, boundary and conditions of the land;
4. Lease term;
5. Lease price;
6. Mode and time of payment;
7. Rights of a third party to the leased land;
8. The parties' liabilities for breach of the contract;
9. Remedy of consequences when the land use right lease contract expires.
Article 705.- Obligations of the land use right lessor
The land use right lessor shall have the following obligations:
1. To register the lease of land use rights;
2. To transfer land to the lessee in accordance with the land acreage, location, code number, category and conditions as agreed upon;
3. To lease land use rights within the term of land allocation or lease;
4. To check and remind the lessee to protect, preserve and use the land for the right purpose;
5. To pay land use tax, unless otherwise agreed upon;
6. To inform the lessee of the rights of the third party to the leased land.
Article 706.- Rights of the land use right lessor
The land use right lessor shall have the following rights:
1. To request the land use right lessee to pay the rent in full;
2. To request the lessee to immediately stop the use of land not for the right purpose, the destruction of land or the reduction of its use value; if the lessee fails to immediately stop such violations, the lessor shall be entitled to unilaterally terminate the performance of the contract and request the lessee to return such land and compensate for damage;
3. To request the lessee to return the land upon expiration of the lease term.
Article 707.- Obligations of the land use right lessee
The land use right lessee shall have the following obligations:
1. To use land for the right purpose, within the boundary and the lease term;
2. Not to destroy the land or reduce its use value and to fulfill other requirements as agreed upon in the land use right lease contract;
3. To pay the rent in full, on time, at the right place and by the agreed mode; in the event the use of land fails to generate profits, the lessee shall still be obligated to pay the rent in full, unless otherwise agreed upon;
4. To comply with the regulations on environmental protection; not to cause damage to the legitimate rights and interests of the surrounding land users;
5. To return the land in the same conditions as when it was received upon the expiration of the lease term, unless otherwise agreed upon.
Article 708.- Rights of the land use right lessee
The land use right lessee shall have the following rights:
1. To request the lessor to transfer the land in strict accordance with the land acreage, location, code number, grade, category and conditions as agreed upon;
2. To use the leased land in a stable manner within the agreed duration;
3. To enjoy the yields and profits from the use of land;
4. To unilaterally terminate the performance of the contract as provided for in Article 426 of this Code;
5. To request the lessor to reduce or exempt the rent in cases where the yields and/or profits are lost or reduced due to force majeurecircumstances.
Article 709.- Delay in payment of rent
When the lessee delays in paying the rent for the lease of land use rights as agreed upon, the lessor may grant an extension; if such extension has expired and the lessee fails to fulfill his/her obligations, the lessor shall be entitled to unilaterally terminate the performance of the contract and request the lessee to return the land. The lessor shall be entitled to request the lessee to make the full payment for the time during which the land use rights were leased, including the interest on the amount of delayed payment at the basic interest rate set by the State Bank corresponding to the period of delayed payment at the time of payment.
Article 710.- Compensation for damage caused by recovery of land
1. When the lessor or the lessee intentionally breaches the obligations of the land user, thus leading to the recovery of land by the State, the breaching party must compensate the other party for the damage.
2. In cases where the contract for the land use right lease is still valid, but for the national security, defense requirements, national interests, public interests and economic development, the State recovers the land, then the contract for the land use right lease shall terminate ahead of time.
In cases where the lessee has paid the rent fully in advance, the lessor must reimburse the lessee the remaining rent corresponding to the period of time when the land has not been used; if the lessee has not yet paid the rent, he/she/it must pay only an amount corresponding to the period of time when the land has been used.
The lessor shall be compensated by the State for the damage caused by the recovery of land in accordance with provisions of law, and the lessee shall be compensated by the State for the loss of yields from such land.
Article 711.- The right to continue leasing land use rights when one party dies
1. In cases where the land use right lessor being an individual dies, the lessee shall be entitled to continue leasing land use rights until the lease term expires.
2. In cases where the land use right lessee being an individual dies, the members of his/her household shall be allowed to continue leasing land use rights until the lease term expires, but must notify a competent state agency thereof.
Article 712.- Assignment of land use rights during the term of a land use right lease
When term of a land use right lease remains in effect, the lessor is still entitled to assign land use rights to another person, if so permitted by a competent state agency, but must inform the lessee thereof so that the latter performs his/her obligations to the land use right assignee.
The lessee shall still be entitled to continue the lease until the contractual term of the land use right lease expires.
Article 713.- Termination of contracts for land use right lease
1. A contract for land use right lease shall terminate in the following cases:
a/ The lease term expires and is not extended;
b/ It is so agreed upon by the parties;
c/ The State recovers the land;
d/ One of the parties unilaterally terminates the performance of the contract or cancels the contract as agreed upon or provided for by law;
e/ The land use right lessee being an individual dies without any other members of his/her household or with other members of his/her household but they do not have demand for continued lease;
f) The leased land area is no longer in existence due to a natural calamity;
g) Other cases specified by law.
2. When a land use right lease contract terminates, the lessee must restore the land to its conditions as when it was received, unless otherwise agreed upon or provided for by law. The property attached to the land shall be settled under the parties' agreement.
Section 2. CONTRACTS FOR LAND USE RIGHT SUBLEASE
Article 714.- Contracts for land use right sublease
Unless otherwise provided for by law, the provisions of Articles 703 thru 713 of this Code shall also apply to contracts for land use right sublease.
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