A red book, also known as the Land Use Right Certificate, is a document that certifies the land use rights. On the other hand, a pink book is a certificate of ownership of a house and the land use rights, ownership of buildings, or ownership of houses and attached property rights.
Starting from January 1, 2025, when the Land Law No. 31/2024/QH15 takes effect, the official names of the red book and the pink book will be the Certificate of Land Use Rights and the Certificate of Property Ownership Attached to Land.
It is entirely reasonable that not having a red book before 2026 would cost a lot of money. This is because, according to Clause 1, Article 257 of the Land Law 2024, the current land price list is applied for the period from 2020 to 2024 and will continue to be applied until December 31, 2025. From January 1, 2026, the provinces and centrally-affiliated cities will issue and apply a new land price list.
After that, the land price list will be adjusted, amended, and supplemented annually (updating prices to be suitable for the market for areas and types of land that have fluctuations) instead of every 5 years as is currently done to comply with market principles.
Moreover, the new land price list will be built based on the area and location according to the land valuation must follow market principles. On the other hand, it also builds a land price list to each land plot based on the value area, standard land plot for areas with cadastral maps and land price databases (Clause 2, Article 257 of the Land Law 2024).
Currently, the land price list is issued every 5 years, based on the Land Law 2013, which includes: Principles, methods of land valuation, and land price framework (Clause 1, Article 114 of the Land Law 2013). The land price list is only adjusted when the Government adjusts the land price framework or the common market price fluctuates.
However, the new law has removed the land price framework. Accordingly, the new land price list is built based on principles, methods of land valuation without relying on the minimum and maximum land prices of each type of land in the current land price framework.
In summary, the new land price list will approach the market land price, which means it has the potential to increase significantly compared to the current land price list.
This implies that the cost of obtaining a red book may increase significantly from 2026 onwards. Because in the amounts of money required to apply for the initial issuance of a red book, there are amounts of money calculated based on the land price on the land price list:
– Land Use Fee;
– Land Rent Fee (if any);
– Prepaid Fees.
Among them, the land use fee is the highest (however, there are some exceptional cases exempted from payment). Accordingly, when applying the new land price list, the land use fee, land rent fee (if any), and prepaid fees will all increase accordingly.
Therefore, people should complete the issuance of a red book before 2026 because when the new land price list is in effect, the cost of obtaining a red book may increase significantly compared to the present situation.
Based on land valuation according to the Land Law 2024
The land price is determined based on the following factors:
– Land use purposes;
– Land use period. For agricultural land that has been allocated by the state to households or individuals according to the limit of agricultural land allocation, agricultural land within the limit of receiving land use right transfer, the land use period is not based on the land use period;
– Input information to determine land prices according to land valuation methods including:
Land prices recorded in the national land and real estate price database;
Land prices recorded in the land use rights transfer contract; land auction prices after completing the financial obligations;
Land prices collected through surveys and investigations for cases where there is no price information stipulated in point a and point b of this clause;
Information on revenue, costs, income from land use.
– Other factors affecting land prices;
– Provisions of the law related to the valuation at the valuation time.
