Penalties for failure to register changes of land use rights when transferring land use rights certificates in Vietnam

Penalties for failure to register changes of land use rights when transferring land use rights certificates in Vietnam​ (Image from Internet)

Is it necessary to register changes of land use rights when transferring land use rights certificates in Vietnam?

Currently, there is no document that defines the concept of a red book. The term "red book" is used by the public to refer to the Land Use Rights Certificate based on the color of the certificate.

Transferring the land use rights certificate is essentially a procedure for registering land-use changes when transferring, donating, or inheriting land-use rights, or land-use rights and other assets attached to the land.

According to Point a, Clause 1, Article 133 of the Land Law 2024, when the land user or owner of assets attached to the land exercises rights such as exchanging, transferring, donating, or inheriting the land that has been issued a land use rights certificate, the registration of land-use changes is mandatory.

Also, according to Clause 2, Article 133 of the Land Law 2024, when land-use change registration procedures are carried out, the competent authority will confirm on the already issued land use rights certificate or issue a new land use rights certificate (as per current regulations, it will be granted a Certificate of Land Use Rights and Ownership of Assets attached to the land) when the land user, owner of assets attached to the land, has a need.

Note: Within 30 days from the date of the change, the land user must register the change with the competent authority.

Thus, when transferring the land use rights certificate, registering for land-use changes is a mandatory procedure to ensure the legal rights of the land user and compliance with the law.

Penalties for failure to register changes of land use rights when transferring land use rights certificates in Vietnam

Registering land-use changes is mandatory when transferring the land use rights certificate. If the certificate is transferred without performing land-use change registration, administrative penalties will be applied according to the law.

The penalty for transferring the land use rights certificate without registering land-use changes within 30 days from the date of the change is from 2 million VND to 3 million VND according to Clause 2, Article 16 of Decree 123/2024/ND-CP.

Besides the monetary fine, individuals or organizations in violation must rectify the situation by completing the legal procedures for registering land-use changes.

Note: The above-mentioned fine is for individuals, whereas the penalty for organizations is double the amount for individuals. (Clause 2, Article 5 of Decree 123/2024/ND-CP)

Thus, when transferring the land use rights certificate without registering land-use changes, individuals may be fined from 2,000,000 VND to 3,000,000 VND, while organizations may be fined from 4,000,000 VND to 6,000,000 VND.

Who will be penalized for not registering land-use changes when transferring the land use rights certificate?

When engaging in transactions related to land-use rights, such as transferring, inheriting, donating, or contributing capital, the law mandates that land-use changes must be registered with the competent state authority within 30 days from the date of the change. Failure to register land use when transferring the land use rights certificate will lead to administrative penalties as per the legal regulations.

According to Point c, Clause 5, Article 5 of Decree 123/2024/ND-CP, in cases of transferring, inheriting, donating, or contributing capital with land-use rights without registering land-use changes, administrative penalties apply to the party receiving the land-use right.

Thus, if the registration of land-use changes is not performed within the stipulated time when transferring the land use rights certificate, the party receiving the land-use rights will be subject to administrative penalties.

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