“Protect Yourself When Lending Your Property: The Importance of Clear, Written Agreements”

While these incidents may seem absurd, they are not uncommon and often cause inconvenience to homeowners trying to protect their assets, sometimes even leading to prolonged disputes that end up in court. Legal experts emphasize the importance of having a written agreement in place to mitigate risks when lending out one’s property.

Struggles to Reclaim Property

Mr. Nguyen Quang Hai from Cau Giay ward shared his experience, recalling that ten years ago, he purchased a house in ward Xuan Phuong. As he didn’t need to live there and often traveled for work, he lent the house to his cousin to look after it. Over time, the cousin started a family and set up a business at the property.

Earlier this year, due to financial difficulties, Mr. Hai decided to sell the land. However, when potential buyers were brought to view the property, his cousin became hostile and obstructive, deterring interested parties. To protect his rights, Mr. Hai had to threaten legal action, after which his cousin reluctantly agreed to move out within six months.

It’s not just sellers who face challenges; buyers can also find themselves in a bind when the occupant refuses to vacate. Mr. Nguyen Lam from Au Co ward encountered such a situation when he purchased a 204sqm property in Nghia Do ward from Mr. Pham Van Hung. Unbeknownst to Mr. Lam, Mr. Hung had previously allowed his relative, Mr. Pham Van Hieu, to live there. When Mr. Hung sold the property to Mr. Lam, Mr. Hieu refused to leave, creating difficulties for the new owner.

Matters became more complicated when, in 2021, Mr. and Mrs. Lam took out a loan from a bank by signing a credit contract and mortgaging the land and the house for over VND 18 billion. In May 2025, unable to repay the principal and interest, they were subjected to enforcement by the bank, which auctioned off the mortgaged property to recover the debt, totaling nearly VND 23 billion.

During the enforcement process, Mr. Hieu refused to cooperate and hindered the handling of the assets and debt recovery. On May 28, 2025, the Civil Judgment Enforcement Agency of Hoan Kiem district (formerly) issued a notice, requesting those occupying the property, including Mr. Hieu, to hand it over to the authorities. In case of non-compliance, enforcement measures would be taken as per legal regulations.

Avoiding Verbal Agreements

In reality, legal institutions handle hundreds of disputes annually regarding lent or occupied real estate. Many of these cases drag on due to a lack of evidence, causing harm to the involved parties and wasting social resources. Most disputes arise from verbal agreements without contracts or specified timelines.

Regarding this issue, Lawyer Truong Thanh Duc, Director of ANVI Law Firm, stated that when it comes to high-value real estate, greed can surface. Meanwhile, lenders often become complacent because they are lending to relatives or acquaintances.

“There have been instances where the occupant applies for a land-use certificate (red book) to legalize their occupation, complicating matters for the legal owner,” Lawyer Truong Thanh Duc added. According to the lawyer, if the owner has the red book, reclaiming the property is straightforward. However, to avoid hassles, it is advisable to establish a contract or written commitment with signatures, clearly outlining the timeline and responsibilities.

“Previously, the 2005 Housing Law required the lending of houses to be notarized. Nowadays, according to the current Housing Law, even a handwritten agreement holds legal value. It only takes a few minutes for the owner to create a ‘legal document’ that safeguards their legitimate rights,” informed Lawyer Truong Thanh Duc.

Another crucial point is that owners must never break into their locked property, even if they have lent it out, as this could lead to accusations of property damage. There have been cases where occupants deliberately set traps, resulting in counter-accusations. Therefore, according to Article 499 of the 2015 Civil Code, owners must notify the occupant in writing, via text message, email, or verbally, of their intention to reclaim the property. If the occupant refuses to vacate, the owner can initiate legal action. When entering the premises, it should be done in the presence of authorities to avoid false accusations.

Lawyer Truong Thanh Duc further warned against lending out properties without red books, as disputes over such properties could result in significant time and financial losses and even legal entanglements for the owner.

A moment of complacency or reliance on verbal promises can turn homeowners into victims in their property. Relying solely on familial ties or verbal agreements is risky; instead, a written agreement or legally binding commitment is the best protection for homeowners to avoid unnecessary disputes and safeguard their legitimate rights.