Vietnam: Is a land parcel that is smaller than the prescribed minimum area eligible for red book (land use right certificate) issuance?

According to Clause 1 Article 29 of Decree No. 43/2013/ND-CP of Vietnam’s Government, an individual having a land parcel that is smaller than the prescribed minimum area can still be granted a red book (land use right certificate) if he/she meets the following conditions:

1. For a currently used land parcel which was formed before the effective date of the provincial-level People’s Committee’s document on the minimum area of a land parcel eligible for splitting and which is smaller than the minimum area prescribed by the provincial-level People’s Committee but fully satisfies the conditions for grant of a certificate of land use rights and ownership of houses and other land-attached assets, the current user shall be granted such certificate.

The law specifies only two specific conditions for granting a Land use right certificate in case the land parcel that is smaller than the prescribed minimum area:

Firstly, the currently used land parcel was formed before the effective date of the provincial-level People’s Committee’s document on the minimum area of a land parcel eligible for splitting and which is smaller than the minimum area prescribed by the provincial-level People’s Committee.

Secondly, the currently used land parcel fully satisfies the conditions for grant of a red book.

Besides, according to Clause 4 Article 95 of the Land Law 2013 of Vietnam, the land user or the owner of land-attached assets exercises the right to transfer land use rights or land-attached assets where the certificates have been granted must conduct change registration of land. In other words, when transferring land use rights or land-attached assets that have been granted a certificate, a new certificate will not be issued. Instead, the transfer will be recorded and the ownership will be transferred according to Point i, Clause 2, Article 17 of Circular No. 23/2014/TT-BTNMT of the Ministry of Natural Resources and Environment of Vietnam.

Thus, if a land plot is smaller than the prescribed minimum area but has already been granted a certificate, it can be transferred and the certificate will be updated with the new owner's name.

Note:

- Notarization, certification, grant of a certificate of land use rights and ownership of houses and other land-attached assets, and carrying out of procedures to exercise the rights of land users are not allowed in case land users arbitrarily divide the land parcels already registered and granted with the certificates into two or more smaller land parcels at least one of which is smaller than the minimum area prescribed by the provincial-level People’s Committee.

- In case land users simultaneously apply for splitting of a land parcel smaller than the prescribed minimum area and for consolidation of this land parcel with another adjacent one to form a new land parcel equal to or larger than the minimum area of a land parcel eligible for splitting, they shall be allowed to split and consolidate the land parcels simultaneously and shall be granted a certificate of land use rights and ownership of houses and other land- attached assets for the new land parcel.

Legal basis:

- Land Law 2013

- Decree No. 43/2013/ND-CP

- Circular No. 23/2014/TT-BTNMT

Ngoc Tai

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