Who is eligible to conclude contracts on lease of land use rights of households in Vietnam?

Hello, Lawnet would like to answer the following:

1. Is it necessary to conduct notarization of contracts on land lease in Vietnam?

According to Clause 3, Article 167 of the Land Law 2013, regulations on notarization and authentication of contracts are as follows:

Article 167. The right to exchange, transfer, lease, sublease, inherit, donate, mortgage land use rights and contribute land use rights as capital

 

3. The notarization and certification of contracts and documents on the exercise of the rights of land users shall be conducted as follows:

a/ Contracts on transfer, donation, mortgage or contribution of land use rights as capital or the rights to use land and land-attached assets must be notarized or certified, except the case of real estate business prescribed at Point b of this Clause;

b/ Contracts on lease or sublease of land use rights or the rights to use land and land-attached assets, a contract on exchange of agricultural land use rights, a contract on transfer of land use rights or the rights to use land and land-attached assets in which one party or all parties involved in the transaction is/are a real estate business organization or organizations must be notarized or certified at the request of the parties;

c/ The documents on inheritance of land use rights or the rights to use land and land-attached assets must be notarized or certified under the civil law;

d/ The notarization shall be conducted at notarization-practicing organizations and the certification shall be conducted at commune-level People’s Committees.

Regarding the issue of notarization of contracts on land lease, the law does not require the parties to notarize and certify the lease contract but will depend on the requirements of the parties. Notarization and certification will ensure a more legal lease.

2. Who is eligible to conclude contracts on lease of land use rights of households in Vietnam?

According to Article 64 of Decree 43/2014/ND-CP, regulations on contracts and transaction documents on land use rights and ownership of land-attached assets are as follows:

Article 64. Contracts and transaction documents on land use rights and ownership of land-attached assets

1. Contracts and transaction documents on land use rights and ownership of land-attached assets of households shall be signed by the persons named in the certificates or authorized in accordance with the civil law.

2. Contracts and transaction documents on land use rights and ownership of land-attached assets of groups of land users or groups of owners of land-attached assets shall be signed by all group members or enclosed with authorization documents in accordance with the civil law, except the case of apartment owners sharing the use of a land parcel in an apartment building.

Thus in the case of transactions related to the household's land use rights, it must be concluded by the person named on the Certificate or by an authorized person.

In addition, in Clause 5, Article 14 of Circular 02/2015/TT-BTNMT, there are instructions on Clause 1, Article 64 of Decree 43/2014/ND-CP as follows:

Article 14. Additional regulations on submission of documentation, procedures for land registration, issuance of certificates of rights to land use, ownership of houses and land-linked properties

5. Any person who has his/her name on the certificates or is authorized as prescribed in Clause 1, Article of the Decree 43/2014/NĐ-CP shall be permitted to perform signing the contract, written transaction for land use rights, ownership of land-linked properties only if all members of the household using the land agree in writing and such agreement must be authenticated or certified as true copy according to the law provisions.

Thus, the contracts and transaction documents on land use rights and ownership of land-attached assets must be agreed in writing by members of the land-using household, and such agreement must be authenticated or certified as true copy according to the law provisions.

However, your case is a household leasing land, so it is not within the scope of regulation in Clause 5, Article 14 of Circular 02/2015/TT-BTNMT above.

Thus, the person named on the Certificate or an authorized person has the authority to sign a land lease contract for the household, but, to ensure legality, the signer can obtain the written authorization of the people in the household for the representative of the household to establish the implementation of the lease contract.

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