Hello LawNet. Is my company allowed to sell assets attached to land which is leased by the State with annual rental payment? If allowed, what are the procedures therefor? This is the question of Ms. Thu Huyen in Dong Nai sent to LawNet.
Article table of contents
LawNet would like to answer Ms. Thu Huyen’s question as follows:
1. Conditions for selling and buying assets attached to land with annual rental payment
According to Article 189 of the Land Law 2013 of Vietnam, economic organizations, households, individuals, overseas Vietnamese and foreign- invested enterprises may sell assets attached to leased land when fully meeting die following conditions:
- The assets attached to leased land are legally established in accordance with law;
- The construction has been completed in accordance with the detailed construction master plan and approved investment project.
Besides, the buyer of assets attached to leased land must ensure the following conditions:
- Having financial capacity to implement investment projects;
- Having business lines relevant to investment projects;
- Not violating the land law when being allocated or leased land from the State to implement the previous projects.
If your company meets all the aforementioned conditions, it can proceed with the process of selling and buying assets attached to land which is leased by the State with annual rental payment according to Article 79 of Decree No. 43/2014/ND-CP of Vietnam’s Government.
2. Procedures for selling and buying assets attached to land with annual rental payment
Step 1: Prepare dossiers for selling and buying assets attached to land with annual rental payment
According to Article 8 of Circular No. 24/2014/TT-BTNMT of the Ministry of Natural Resources and Environment of Vietnam, the applicant shall prepare 01 set of dossiers, including:
- A contract or document for the purchase and sale of assets attached to land with annual rental payment according to regulations;
- An original of the granted Certificate of land use right;
- A land lease contract signed with the State.
Quantity: 01 set.
Step 2: Submit dossiers for selling and buying assets attached to land with annual rental payment
According to Point b Clause 1 Article 60 of the Land Law 2013, the land user shall submit dossiers at the Branch of the District-level Land Registration Office or the designated agency, as stipulated by the Provincial-level People's Committee of province and central-affiliated city.
Step 3: The agency implementing administrative procedures shall receive and check documents for buying and selling assets attached to land with annual rental payment.
In case the documents are complete, the agency will issue a receipt to the applicant.
In case of receiving an incomplete or invalid application, within a maximum of 03 days, the agency receiving and processing the application must notify and instruct the applicant to supplement and complete the application according to regulations.
The Branch of the Land Registration Office shall prepare dossiers for the buyer and the party contributing capital with assets attached to the land to continue leasing the land. The dossiers are then transferred to the competent natural resources and environment agency for further processing of the land lease documents.
The Natural Resources and Environment Agency is responsible for examining the submitted documents and submitting them to the competent People's Committee for a decision on the land recovery from the seller of the assets attached to the leased land, in order for the buyer of the assets attached to the land to continue leasing the land; signing the lease agreement with the buyer of the assets attached to the land; notifying the tax authority in writing about the termination of the land lease contract for the seller and the commencement of the contract for the buyer of the assets.
Step 4: Receive the results of the procedures for selling and buying assets attached to land with annual rental payment
The Branch of the Land Registration Office shall send the lease agreement to the buyer and the party contributing capital with assets attached to the leased land; make adjustments and update the changes in the land records and land database; issue the land use right certificate to the recipient or send it to the commune-level People's Committee for distribution to the recipient in the case of households, individuals, or community residents who submitted their documents at the commune level.
3. Duration of administrative procedures for selling and buying assets attached to land with annual rental payment
According to Clause 40 Article 2 of Decree No. 01/2017/ND-CP of Vietnam’s Government, the duration of administrative procedures for selling and buying assets attached to land with annual rental payment shall not exceed 30 days from the date of receiving the valid documents. This includes 10 days for the registration of the asset purchase transaction and 20 days for the land lease procedure.
The duration of each procedure defined in this Article shall be elongated by 10 days, except the reconciliation of land dispute, in mountainous communes, islands, remote regions and areas that are (severely) troubled socially and economically.
The results of the administrative procedure must be returned to the land user or the owner of the assets attached to the land within a maximum of 03 working days from the date of the resolution result.
Le Hau
