In Taiwan’s residential rental market, many people may wonder whether a written contract is mandatory when renting a property. According to Taiwanese law, a lease agreement is considered a "non-formal contract", meaning that even if the landlord and tenant reach a verbal agreement, the contract is still legally valid. However, in practice, a written contract provides clearer protection and helps prevent future disputes. Below are several important points regarding rental agreements:
1. Verbal Agreements Are Also Legally Binding
Lease agreements are non-formal contracts, meaning no specific format is required for them to take effect. As long as both the landlord and tenant reach a consensus on essential terms such as rent and lease duration, even a verbal agreement is considered a valid contract under the Civil Code and is legally protected.
2. Lease Agreements Are Consensual Contracts
A lease agreement is a consensual contract, which means that the contract is established once both parties express mutual consent to the rental terms—whether verbally or in writing. Therefore, a written contract is not mandatory for the legal formation of a lease.
3. Payment of a Deposit or Agreement via Messaging Apps Also Establishes a Contract
According to Article 248 of the Civil Code: “If one party receives a deposit from the other, the contract is presumed to be concluded.” This means that once the tenant pays a deposit, it is presumed that the lease agreement has been established.
In addition, if the landlord and tenant reach an agreement via communication platforms like LINE, WhatsApp, or email, and there is proof of mutual consent to the rental terms, such digital communication carries the same legal weight as an in-person agreement.
4. Relevant Provisions in Civil Code Article 153
Article 153, Paragraph 1 of the Civil Code states: “A contract is formed when the parties have expressed mutual intent, whether explicitly or implicitly.” This means that as long as both parties agree—whether explicitly (verbally or in writing) or implicitly (through actions)—the contract is considered valid and legally enforceable.
5. Written Contracts Are Required for Leases Longer Than One Year
Although verbal agreements are legally valid, Article 422 of the Civil Code stipulates that if the lease term exceeds one year, a written contract is required. If no written agreement is signed, the lease will be considered an "indefinite-term lease."
Under an indefinite-term lease, there is no fixed end date. The landlord cannot unilaterally terminate the lease without reason. Unless the tenant breaches the contract or both parties mutually agree to terminate, the tenant retains the right to continue renting the property.
6. The Importance of a Written Contract
Even though the law recognizes verbal agreements, in practice, signing a written lease is the best way to protect the rights of both parties. A written contract clearly records terms such as rent, lease duration, deposit, and maintenance responsibilities. This helps prevent misunderstandings or disputes later on. In case of conflict, a written contract also serves as a solid legal reference to safeguard both parties’ interests.
🎃 Further reading: What Are the Options for Renting Out Properties in Taiwan?
Conclusion
In Taiwan, a written lease is not always necessary—a verbal agreement or digital consent via messaging apps can form a legally valid contract. However, for leases exceeding one year, the law recommends signing a written contract, or the lease will be considered indefinite. To avoid future disputes, it’s always best for landlords and tenants to sign a written lease agreement to clearly define their rights and responsibilities.
