Conditions for transferring ownership rights and contributing capital using land use rights under new Law

The effective date of Land Law No. 31/2024/QH15 is January 1, 2025, which sets out the conditions for the implementation of rights such as conversion, transfer, lease, re-lease, inheritance, and gifting of land use rights; mortgage and capital contribution using land use rights; and receiving transfer or gift of land use rights.

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Illustrative image for the 31/2024/QH15 Land Law that regulates the conditions for exercising the rights of conversion, transfer, lease, re-lease, inheritance, and gifting of land use rights or commonly known as “land title”.

According to the law, land users are entitled to exercise the rights of conversion, transfer, lease, re-lease, inheritance, and gifting of land use rights; mortgage, contribute capital with land use rights when meeting the following conditions:

1.
Possess a Certificate of land use right or a Certificate of ownership of residential houses and land use rights, or a Certificate of land use right, ownership of residential houses and other assets attached to land, or a Certificate of land use right, ownership of assets attached to land, except for cases of inheritance of land use rights, conversion of agricultural land when consolidating fields, land division, gifting of land use rights to the State, the community and cases specified in Clause 7 of Article 124 and Point a, Clause 4 of Article 127 of this law.

2.
Non-disputed or disputed land already resolved by competent state agencies, judgments, decisions of the court, decisions or rulings of Arbitration that have legal effect.

3.
No lien on the land use rights or application of other measures to ensure the enforcement of judgments as stipulated by the law on civil judgment enforcement.

4.
Within the land use term; Land use rights are not subject to temporary urgent measures according to the provisions of the law on urgent civil judgment enforcement.

5.
In the case of investors transferring land use rights with technical infrastructure in real estate projects, they must also meet other conditions as prescribed by the Law on Real Estate Business, the Law on Housing.

Furthermore, when exercising the rights of conversion, transfer, lease, re-lease, inheritance, and gifting of land use rights; mortgage, contribute capital with land use rights, land users must also meet the following conditions:

1.
In the case of buying, selling assets attached to land, lease rights in lease contracts where the State leases land and collects annual land rental, the conditions prescribed in Article 46 of this Law must be met (Conditions for selling assets attached to land, lease rights in lease contracts where the State leases land and collects annual land rental).

2.
In the case of converting agricultural land use rights, the conditions prescribed in Article 47 of this Law must be met.

3.
In the case of exercising land use rights of individuals belonging to ethnic minorities being allocated land, leased land according to the provisions in Clause 3, Article 16 of this Law, the conditions specified in Article 48 of this Law must be met.

4.
In the case of inheriting land use rights, the heir can exercise the rights when possessing a Certificate of land use right or a Certificate of ownership of residential houses and land use rights or a Certificate of land use right, ownership of residential houses and other assets attached to land or a Certificate of land use right, ownership of assets attached to land or meeting the conditions for granting a Certificate of land use right, ownership of assets attached to land as prescribed by this law.

5.
In the case where land users are late in fulfilling financial obligations or have financial obligations recorded as debt, they must fulfill the financial obligations before exercising the rights of conversion, transfer, lease, re-lease, inheritance, and gifting of land use rights; mortgage, contribute capital with land use rights.

According to the new law, economic organizations receiving the transfer of agricultural land use rights must have an approved land use plan by the People’s Committee at the district level. The land use plan must contain the following main contents: Location, area, land use purpose; Agriculture production and business plan; Investment capital; Land use term; Land use progress.

Individuals who do not directly engage in agricultural production receiving the transfer, gifting of land use rights for rice cultivation beyond the prescribed limit in Article 176 of this Law must establish economic organizations and have a rice cultivation land use plan including the contents specified above, which are approved by the People’s Committee at the district level, except for cases where the recipient is a person entitled to inheritance.

Cases not eligible for a “land title” transfer

The 31/2024/QH15 Land Law also details cases not eligible for receiving the transfer, gifting of land use rights.

According to the law, economic organizations are not allowed to receive the transfer of forest protection land, special-use forest land from individuals, except in cases where the land use purpose is changed according to the approved land use plan, plan.

Individuals who do not reside in forest protection areas, special-use forests are not allowed to receive the transfer, gifting of residential and other land use rights in forest protection areas, in strictly protected, eco-restoration subdivisions of special-use forests.

Organizations, individuals, communities, religious organizations, dependent religious organizations, Vietnamese origin settled abroad, foreign-invested enterprises not allowed by law to receive the transfer, gifting of land use rights.