[:en]One of the most common agreements made in Lao PDR are lease agreements, whether they are for residential accommodation, office or shop space, factory or farm land or any other personal or commercial purposes. However, from time to time, disputes or disagreements may arise from the lease agreement, many of which could have been avoidable through clearly stated terms in a lease contract or a legal review for compliance under Lao PDR law.
The three most common tenancy disputes in Lao PDR we have encountered from our clients include:
In light of the above, how can parties to a lease agreement protect their interest, anticipate issues that may arise and agree on an amicable resolution to their problems?
Irrespective of whether you are the tenant or landlord, it is in the interest of both parties to enter into a clear and detailed lease agreement which identifies the terms and conditions under which the arrangement for the lease of premises will be made to avoid any misunderstandings or disputes which may arise from the agreement.
At a minimum, a lease agreement should contain the following details:
Pursuant to the Lao PDR Law on Contracts, lease agreements must be executed by the tenant and the landlord and signed by two witnesses for each party and the village chief of the location of the lease premises in order to be effective. To ensure legal validity and authenticity of the contract, the executed lease agreement should subsequently be submitted to the Notary Office of the Ministry of Justice for certification.
As with any contractual document, there is room for negotiation or further contractual clauses to be inserted or amended in the interest of either or both parties. To avoid being caught up in a potential dispute arising from the lease agreement, we strongly recommend that prospective tenants and landlords enter into clear and concise lease agreements which are compliant with Lao PDR laws.
This article has been provided by Arion Legal. Operating in Lao PDR since 2008, Arion Legal’s experienced team of lawyers provides focused, results orientated and cost effective legal and tax services to foreign and Lao investors. Should you have any questions relating to our article or would like further advice or our assistance to review or draft a lease agreement from a Lao PDR law perspective, please contact the Arion Legal team at email@example.com.[:]
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