Conditions for transfer of land use rights under investment projects on construction of residential houses for sale in Vietnam

Conditions for transfer of land use rights under investment projects on construction of residential houses for sale in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Conditions for transfer of land use rights under investment projects on construction of residential houses for sale in Vietnam

Conditions for transfer of land use rights in investment projects, construction and business of houses for sale or for sale in combination with lease in Vietnam according to Article 41 of Decree 43/2014/ND-CP (amended in Decree 148/2020/ ND-CP) as follows:

- In order to obtain permission for transfer or disposition of land use rights in the form of division of land into lots, sale of these divided lots, investment projects on construction of residential houses for sale or for combined sale and lease must satisfy the following conditions:

+ Project investors must complete the construction of infrastructure facilities, including service, technical and social infrastructure facilities under the approved 1:500-ratio detailed master plans, ensuring the interconnection to the common infrastructure systems of the areas before transferring land use rights to people to build residential houses at their discretion;

And ensuring essential utilities and amenities, such as electricity, water supply, water drainage and waste collection, must be provided;

+ Project investors shall fulfill all of their financial obligations related to the projects’ land, such as land use levies, fees or land rents; land-related taxes, charges and fees (if any);

+ The projects completed for such transactions must be located in areas or cities where land use rights may be transferred or disposed of in the form of division of land into lots and sale of these divided lots as provided in clause 2 of this Article;

+ They must meet other conditions prescribed in laws on urban zoning, construction and development, real estate and residential house business activities.

- Investors of projects on construction of residential houses for sale or for combined sale and lease may transfer land use rights in the form of division of land into lots and sale of these divided lots in the areas outside the special or grade-I centrally-affiliated cities;

Areas with strict requirements concerning landscape architecture, downtown areas, and proximities of facilities that serve as prominent architectural points of cities; frontages of regional- or higher-level roads and main landscape roads in cities.

- Provincial People's Committees shall be responsible for publicly announcing the areas where the housing construction and trading projects implemented for sale or for combined sale and lease are permitted for transfer in the form of division of land into lots and sale of these divided lots before allowing investment projects to be executed.

- Family households and individuals that receive transferred land use rights to build residential houses of their own accord must build residential houses in accordance with the construction permits, and comply with the approved detailed master plans and urban designs.

2. Conditions for transfer of land use rights associated with the transfer of part or the whole of investment projects on construction and trading of houses in Vietnam

According to Article 42 of Decree 43/2014/ND-CP, the transfer of land use rights associated with the transfer of part or the whole of investment projects on construction and trading of houses must satisfy the following conditions:

- All the conditions prescribed in Clause 1, Article 188 of the Land Law;

- The investors fulfill all financial obligations related to the projects’ land, such as land use levy and land rental; and land-related taxes, charges and fees (if any).

- Transferees of land use rights associated with part or the whole of investment projects on construction and trading of houses conduct relevant business lines and satisfy the conditions prescribed in Article 58 of the Land Law and Articles 13 and 14 of Decree 43/2014/ND-CP.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE