Transferring or donating land use rights requires meeting legal requirements in Vietnam. If citizens arbitrarily transfer land use rights without meeting all conditions, they may face heavy penalties.
Article table of contents
Vietnam: Entities transferring land use rights without meeting all conditions will be fined (Illustrative Image)
Firstly, regarding the conditions for transferring land use rights in Vietnam:
According to Clause 1, Article 188 of the Land Law 2013, land users in Vietnam may exercise the rights to transfer or donate land use rights if the following conditions are met:
- Having the certificate
- The land is dispute-free;
- The land use rights are not distrained to secure judgment enforcement;
- Within the land use term.
Therefore, citizens can only transfer land use rights to others if all four conditions above are met. If any of the conditions are not met and the parties still carry out the transfer, they will be subject to administrative penalties depending on the severity.
Secondly, penalties for transferring land use rights without meeting all conditions:
Under Clause 3, Article 18 of Decree 91/2019/ND-CP, the penalties for transferring, donating, leasing, subleasing, or contributing capital with land use rights without meeting all conditions are as follows:
- A fine ranging from VND 3,000,000 to VND 5,000,000 for rural areas and from VND 5,000,000 to 10,000,000 for urban areas shall be imposed in case of failure to satisfy any of conditions set forth under Clause 1 Article 188 of Land Law;
- A fine ranging from VND 5,000,000 to VND 10,000,000 for rural areas and from VND 10,000,000 to 20,000,000 for urban areas shall be imposed in case of failure to satisfy 2 or more conditions set forth under Clause 1 Article 188 of Land Law.
If the violation is by an organization, the fine will be double the amount applicable to individuals or households (not exceeding VND 40,000,000).
Additionally, in addition to fines, the parties will also be subject to remedial measures as stipulated in Clause 4, Article 18 of Decree 91/2019/ND-CP, as follows:
- The transferee is compelled to return the land to the original user before the transfer.
- The transferor is compelled to hand over any illicit profits gained from the unauthorized land transfer, as determined by the competent authorities.
- The transaction amount for the land transfer must be refunded.
- The state will repossess the land in cases where the land use period has expired without an extension.
Thus, the highest fine for transferring land use rights without meeting all conditions may be VND 40,000,000. Therefore, when transferring or donating land use rights, citizens need to take note of the lawful conditions.
Legal Basis:
Ngoc Tai
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