When a land user does not need to use all or part of the land for a certain period of time, he or she can lend it to others to avoid wasting land or leaving the land abandoned. Lending land belongs to the rights that land owners have under the land law. So, in this article, LSX legal firm will inform you: “Regulations on land lending in Vietnam”
Legal ground
- Land Law 2013
Regulations on land lending in Vietnam
- The current law does not set out detailed and specific regulations on land lending. But in fact, lending land or lending land use rights means a temporary land user for individuals, organizations, agencies, etc., to benefit from the use of land for a certain period of time. On the other hand, the person who borrows the land can lend it back to another person but must get the right of the land lender.
- Besides, lending land is similar to the conversion, transfer, lease, donation of land, etc. However, lending land for use does not mean transferring of land use rights of the land user to another person. So, the owner of the land has the right to reclaim the lent land. When the land owner reclaims the lent land but the borrower does not pay it, then the borrower will violate the law.
Article 167. The right to exchange, transfer, lease, sublease, inherit, donate, mortgage land use rights and contribute land use rights as capital
- Land users may exercise the rights to exchange, transfer, lease, sublease, inherit, donate, mortgage land use rights, and contribute land use rights as capital in accordance with this Law.
- A group of land users sharing land use rights have the following rights and obligations:
a) A group of land users including households and individuals has the same rights and obligations as households and individuals in accordance with this Law.
In case one member of the group of land users is an economic organization, that group of land users has the same rights and obligations as economic organizations in accordance with this Law;
b) For a group of land users sharing land use rights which can be split into portions for each member in the group, if every member wants to exercise his/her land use rights over such portion, they shall carry out the prescribed procedures to have the common land parcel split into different parcels of their own and apply for the certificates of land use rights and ownership of houses and other land-attached assets. Those members will then have the rights and obligations of land users in accordance with this Law.
In case land use rights of the group of land users can not be split into portions, the group shall authorize its representative to exercise the rights and perform the obligations of the group. - The notarization and certification of contracts and documents on the exercise of the rights of land users shall be conducted as follows:
a) Contracts on transfer, donation, mortgage, or contribution of land use rights as capital or the rights to use land and land-attached assets must be notarized or certified, except in the case of real estate business prescribed at Point b of this Clause;
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Time to exercise the rights of land users
Land users may exercise the rights to transfer, lease, sublease, donate and mortgage land use rights and contribute land use rights as capital upon possessing a certificate. In the case of exchanging agricultural land use rights, land users may exercise their rights after a decision on land allocation or land lease is issued. In the case of inheritance of land use rights, land users may exercise their rights upon possessing a certificate or when they are eligible to be granted a certificate.
A land user who is allowed to delay the performance of, or owe, his/her financial obligations, may exercise his/her rights only after fulfilling all financial obligations.
The transfer of land use rights within an investment project on construction of houses for sale or lease or the transfer of land use rights together with the whole project within an investment project on construction of infrastructure for transfer or lease may only conducted after possessing a certificate and satisfaction of all conditions prescribed in Article 194 of the Land Law 2013.
Conditions for lending land
Land users may exercise the rights to exchange, transfer, lease, sublease, inherit, donate or mortgage land use rights and contribute land use rights as the capital when meeting the following conditions:
- Having the certificate, except for the case prescribed in Clause 3; Article 186 and the case of receiving inheritance prescribed in Clause 1, Article 168 of Land Law 2013;
- The land is dispute-free;
- The land-use rights not distrained to secure judgment enforcement;
- Within the land use term.
In addition to the conditions specified above, when exercising the rights to exchange, transfer, lease, sublease, inherit; donate or mortgage land use rights and contribute land use rights as capital; land users must also be eligible under Articles 189, 190, 191, 192, 193 and 194 of the Land Law.
The exchange, transfer, lease, sublease, inheritance, donation; or mortgage of land use rights or contribution of land use rights as capital must be registered with the land registration agency and will take effect from the time of registration in the cadastral book.
On the other hand, according to the provisions of Clause 3, Article 16 of the Land Law 2013; A certificate of land use rights and ownership of houses and other land-attached assets is a legal document for the State to certify land use rights and ownership of houses and other land-attached assets, house ownership and other property rights on the land.
Thus, based on the above regulations, the lending of land will not require a land use right certificate. However, the certificate of land use right presents a legal basis for the law to recognize ownership of the land. So, if you lend land without a land use right certificate; it will make it difficult to reclaim the land if the borrower wants to take possession of the land.
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Related articles
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- Buy land and make a certificate of notarization in Vietnam
- Regulations of Vietnamese law on market land
Related questions
Economic organizations may receive the transfer or contribution as capital of, or lease, agricultural land use rights to carry out investment projects upon receiving written approval from a competent state agency.
The use purpose for the land area of which land use rights acquired, contributed as capital or leased must consist with the master plans, plans on land use approved by competent state agencies.
Firstly, Procedures for land recovery, land allocation, land lease, and change of land use purpose;
Secondly, Procedures for registration of land and land-attached assets and grant of the certificate of land use rights and ownership of houses and other land-attached assets;
Thirdly, Procedures for renewal, re-grant, correction or withdrawal of the certificate, the certificate of house ownership or the certificate of construction work ownership;
Fourthly, Procedures for exercising the rights of land users;
Procedures for enforcing decisions on compulsory inventory and enforcing the implementation of land recovery decisions;
Also, procedures for conciliation and settlement of land-related disputes at administrative agencies;
Procedures for sanction of administrative violations in the field of land.
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The period of master plan on land use: 10 years.
The period of land use plans at the national and provincial levels and for national defense and security: 5 years.
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