New policy on granting red books; land auctions, land recovery

Condotel project is granted certificate of ownership

Illustration photo.

Effective from May 20, 2023, Decree No. 10/2023/ND-CP has supplemented Clause 5, Article 32 of Decree No. 43/2014/ND-CP dated May 15, 2014 regulating the certification of ownership of construction works used for tourist accommodation purposes according to the provisions of the law on tourism on commercial and service land as follows:

For construction works used for tourist accommodation purposes according to the provisions of the law on tourism on commercial and service land, if they meet the conditions prescribed by the law on land, the law on construction, and the law on real estate business, they will be certified for ownership of the construction works attached to the land according to the purpose of using commercial and service land; the land use term is according to the provisions of Clause 3, Article 126, Clause 1, Article 128 of the Land Law. The owner of the construction works is responsible before the law for meeting the conditions prescribed by the law on construction and the law on real estate business.

The certification of ownership of construction works is carried out in accordance with regulations. The information about the land plot on the Certificate must be correct in terms of purpose and land use duration in accordance with the provisions of law.

Conditions for participating in land use rights auction

Decree No. 10/2023/ND-CP supplements Article 17b of Decree No. 43/2014/ND-CP dated May 15, 2014 regulating the auction of land use rights when the State allocates land with land use fee collection and leases land.

According to regulations, organizations participating in land use rights auctions must meet the following conditions:

1- Belonging to the subjects that are allocated land or leased land by the State according to the provisions of Article 55 and Article 56 of the Land Law. In case of auctioning a land plot or a project consisting of one or more land plots where two or more companies have cross-ownership according to the provisions of the law on enterprises, only one company is allowed to participate in the auction of the above land use rights;

2- Satisfy the conditions specified in Clause 3, Article 58 of the Land Law, Clauses 2 and 3, Article 14 of this Decree;

3- Must pay a deposit of 20% of the total value of the land plot, land area calculated according to the starting price for auction of land use rights;

4- Not subject to prohibition from participating in auctions according to the provisions of law;

5- Satisfy the conditions prescribed by the law on housing and the law on real estate business in the case of auctioning land use rights to implement housing projects and other real estate business projects.

Households and individuals participating in land use rights auctions must ensure the following conditions:

1- Belonging to the subjects that are allocated land or leased land by the State according to the provisions of Article 55 and Article 56 of the Land Law and meeting the conditions specified in Point c and Point d, Clause 1 of this Article;

2- In case households and individuals participate in the auction of land use rights to implement investment projects, they must ensure the conditions specified in Point a of this Clause and Point b and Point d, Clause 1 of this Article.

Conditions for land put up for auction of land use rights include:

1- Satisfy the provisions of Clause 1, Article 119 of the Land Law;

2- The competent state agency has decided on the starting price for auctioning land use rights;

3- Land use rights auction is conducted for each land plot;

4- There is a detailed 1/500 planning approved by a competent authority for the land implementing the housing construction investment project.

The Decree stipulates that from the time of announcement of the auction results, the deposit and interest (if any) will be converted into a deposit to ensure the performance of the land user's financial obligations.

In case the auction winner fails to pay or fails to pay the full amount of the land use right auction winning amount as prescribed in Point d, Clause 5, Article 68 of this Decree, the auction winner shall not receive the deposit back. In case the auction winner has paid more than the deposit amount, the State shall refund the difference in amount greater than the deposit amount as prescribed.

Regulations on land recovery in case of termination of investment project activities

At the same time, Decree No. 10/2023/ND-CP also supplements Article 15b of Decree No. 43/2014/ND-CP dated May 15, 2014, regulating land recovery in cases of termination of investment projects in accordance with the provisions of law on investment.

Accordingly, land recovery in case of termination of investment project activities according to the provisions of the law on investment, except for cases where the State recovers land according to the provisions of Clause 1, Article 64 and Clause 1, Article 65 of the Land Law, shall be carried out according to the following provisions:

1- In case the State allocates land with land use fee collection, or leases land with one-time land rental fee collection for the entire lease term, land recovery shall be handled as follows:

a) The investor is allowed to continue using the land for 24 months from the date the investment project is terminated in accordance with the provisions of the law on investment;

b) Within 24 months from the date the investment project is terminated according to regulations, the investor is allowed to transfer land use rights and sell legal assets attached to the land to other investors according to the provisions of law.

When the 24-month extension period for land use progress expires and the investor fails to transfer the land use rights or sell its legal assets attached to the land to another investor, the State shall reclaim the land without compensation for the land or assets attached to the land, except in cases of force majeure specified in Clause 1, Article 15 of this Decree.

2- In case the State leases land and collects annual land rent, land recovery shall be handled according to the following provisions:

a) The investor is allowed to continue using the land for 24 months from the date the investment project is terminated in accordance with the provisions of the law on investment;

b) Within 24 months from the date the investment project is terminated according to regulations, the investor is allowed to sell legal assets attached to the land to another investor according to the provisions of law. The State shall reclaim the land from the seller of assets attached to the leased land to the buyer of assets using the land.

When the 24-month extension period for land use progress expires and the investor fails to sell his/her legal assets attached to the land to another investor, the State shall reclaim the land without compensation for the land or assets attached to the land, except in cases of force majeure specified in Clause 1, Article 15 of this Decree.