Vietnam: New regulations regarding the issuance of land use right certificates applicable from March 03, 2017

Decree No. 01/2017/ND-CP of Vietnam’s Government on amendments to regulations on implementation of the Land Law 2013 will come into force from March 03, 2017. This Decree contains several new provisions, which are expected to bring many benefits to individuals and businesses when applying for land use right certificates, ownership of residential houses, and other assets attached to the land.

Land use right certificates (also known as "red books") can now be issued for land that has been bought and sold through handwritten documents

Decree No. 01/2017/ND-CP of Vietnam’s Government allows individuals who have bought and sold houses or land using handwritten documents from July 01, 2004, to before January 01, 2008, to have their transactions legalized and issued with land use right certificates, also known as "red books". Previously, only transactions made with handwritten documents before July 01, 2004, were eligible for land use right certificates.

The above-mentioned change has helped legitimize many cases of buying and selling houses or land using handwritten documents.

Furthermore, Decree No. 01/2017/ND-CP also allows the Department of Natural Resources and Environment to authorize the Land Registration Office to issue land use right certificates in cases of land registration changes, issuance, or re-issuance, etc.

According to the Hanoi Land Registration Office (Department of Natural Resources and Environment of Hanoi), the districts and communes are responsible for verifying the status of the land plots involved and then sending the information to the Land Registration Office. The Land Registration Office is only responsible for printing the information on the land use right certificate and sending it back to the districts and communes for issuance to the individuals. The conditions for issuing the land use right certificate are that the house or land is currently being stably used, compliant with planning regulations, free from disputes or complaints, and fulfilling the financial obligations as required, while also meeting the requirements of transparency and public disclosure.

Red books will still be issued to households and individuals who commit violations of the land law before July 01, 2014

Decree No. 01/2017/ND-CP of Vietnam’s Government stipulates that households and individuals who commit violations of the land law before July 01, 2014 but are currently using the land stably shall be issued with red books from March 03, 2017 if falling into one of the following cases:

- Use of encroached or occupied land of public-facility protection corridors after the State announces and puts up boundary landmarks of such corridors, or of encroached or occupied land of roads, roadsides and pavements after the State announces construction red lines, or of encroached or occupied land used for the construction of offices of state agencies, non-business works or other public facilities;

- Currently using land that encroaches upon or occupies planned areas that have been reclaimed by the provincial-level People's Committee, but are considered for exchange by the Forest Management Board, or if they have encroached upon or occupied land that is currently being used for agricultural production or housing purposes and is not part of forest protection and development planning;

- Cases of encroachment or occupation of unused land or of land use purpose change without permission of competent state agencies but already built houses and have been using the land stably before October 15, 1993.

Red books shall be issued to households and individuals who have been allocated land by an incompetent authority

Decree No. 01/2017/ND-CP clearly states: When a person applies for the certificate of land use right with or without ownership of house and properties attached to land over an undisputed land parcel allocated by an incompetent authority before 01 July, 2004 in line with the plan, whether a house exists on such land parcel upon issuance of the certificate, such person shall qualify for certification and incur financial obligation(s).
An area of land in excess of that specified in the land use right document

Land registration office shall be responsible for providing confirmation on the form of application for reissuance or replacement of the certificate of land use right and ownership of house and properties attached to land over the additional land area and for sending cadastral information to the relevant tax authority, presenting documents for issuance of the certificate, updating and revising cadastral documents and land database in regard to the entire land area in use, issuing the certificate or sending documents to the communal People's Committee to which the application was filed for further discussion.

Land in urban areas, rural residential areas, and production and business areas that serve multiple purposes

The main investor of a condominium mixed with office and commercial space, if qualifying and applying, shall be bestowed the certificate of land use right with or without ownership of house and properties attached to land over one or multiple apartments, offices and commercial space under its ownership.

In cases where the land use right has been transferred but not yet transferred to the new owner

In cases where the land is currently being used and falls under the category of receiving transfers or gifts before January 01, 2008, or transfers or gifts from January 01, 2008, to before July 01, 2014, with land use right certificates, or inherited land with use rights before July 01, 2014, the receiving agency is not allowed to request the recipient to submit contracts or documents regarding the transfer of land use rights.

Shortening the time limit for issuing red books

Decree No. 01/2017/ND-CP stipulates the time limit for the implementation of certain administrative procedures related to land as well as the expanded cases in which land use rights can be granted, as follows:

- The registration and certification of land use right with or without ownership of house and properties attached to land upon a change to the properties attached to land; the division or consolidation of land lots or the registration of land allocated by the government for management shall not take more than 15 days;

- The registration of change to the land user(s), to the owner(s) of properties attached to land, to the shape, size, number or address of a land lot or to limitation(s) on land use right or to financial obligations; registration of change to land or properties attached to land for a winner of an auction of land use right; the division or consolidation of land use right(s) and ownership(s) of properties attached to land under an agreement of a household, married couple or group of land users, etc. shall not take more than 10 days;

- The registration of land and properties attached to land or the certification of land use right with or without ownership of house and properties attached to land shall not take more than 30 days;

- The division or consolidation of land lots or the registration of land allocated by the government for management shall not take more than 15 days;

- The procedure for land use extension shall not take more than 07 days;

- The procedure for confirmation of a household’s or individual’s continued use of land upon expiration of land use duration shall not take more than 05 days;

- The registration, revision or termination of a limited right of use of a contiguous land lot shall not take more than 10 days;

- The registration of change to the land user(s), to the owner(s) of properties attached to land, to the shape, size, number or address of a land lot or to limitation(s) on land use right or to financial obligations or to properties attached to land against the previous registration shall not take more than 10 days;

- The procedure for changing from renting of land on annual rental basis to renting of land on one-off rent payment; or from the government’s allocation of land without land use fee to renting of land; or from renting of land to land allocation with the charge of land use fee shall not take more than 30 days;

- The procedure for exchange, transfer, inheritance, donation of land use right with or without ownership of properties attached to land or for registration of capital contribution in the form of land use right or ownership of properties attached to land shall not take more than 10 days;

- The procedure for termination of registration of capital contribution in the form of land use right with or without ownership of properties attached to land shall not take more than 03 days;

- The procedure for registration or termination of registration of mortgage, lease or sublease of land use right shall not take more than 03 days;

- The procedure for changing a spouse's land use right with or without ownership of properties attached to land to the spouses' concurrent right and ownership shall not take more than 05 days;

- The procedure for replacement of a certificate of land use right, certificate of house ownership or certificate of ownership of a building shall not take more than 07 days; however, the procedure for replacement of multiple land users’ certificates due to map redrawing shall not take more than 50 days;

- The procedure for reissuance of a lost certificate of land use right, lost certificate of house ownership or lost certificate of ownership of a building shall not take more than 10 days;

- The procedure for correction of information on an issued certificate of land use right with or without ownership of house and properties attached to land, an issued certificate of land use right, an issued certificate of house ownership and land use right, an issued certificate of house ownership or an issued certificate of ownership of a building shall not take more than 10 days.

The Ministry of Natural Resources and Environment believes that this Decree has been carefully and meticulously prepared based on the review and synthesis of the shortcomings and difficulties encountered during the implementation of the Land Law in various ministries, sectors, and localities over the past two years. The content of this Decree contains several new provisions that are expected to bring many benefits to individuals and businesses when applying for land use right certificates, ownership of residential houses, and other assets attached to the land.

According to Kien Sat Online

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