Hello Lawyer X, I want to buy a piece of land in District 9 to invest in construction, production, business and export of coffee products. However, through the exchange process, the land seller said this is mixed residential land. But what is mixed land? Is mixed residential land allowed to build? Please advise.
Hello, mixed residential land has an attractive price in the real estate market, but not everyone knows or understands the regulations on mixed residential land. So what is mixed residential land? What is the current regulation on mixed residential land? Let’s find out with Lawyer X.
Legal grounds
Land Law 2013
Circular No. 01/2021/TT-BXD
What is mixed land?
According to the Land Law, there are 3 main types of land: agricultural land, non-agricultural land and unused land. Mixed land does not belong to one of the above-mentioned types of land. If the other 3 types of land are clear about the purpose of use, the mixed residential land serves many different purposes, combining residential needs with business, service; or production. In Circular No. 01/2021/TT-BXD, mixed land is defined as the type of land defined in the planning scheme, used for the construction of works, mixed houses, or for some other purposes.
Accordingly, mixed residential land will be oriented to develop the organization of urban space, residential areas, physical infrastructure, etc. in order to complete the functions of the planning – local area. Thereby improving the quality of people’s lives, and changing the socio-economic face of the region.
Also because it does not belong to one of the three types of land under the 2013 Land Law, there is no specific regulation on mixed land in the Code. This leads to problems for people in applying for construction permits and separating plots. Families living on mixed-use land are often granted a temporary construction permit, if the construction is completed, the as-built dossier will not be processed. However, buildings and houses built on mixed land are not recognized as separate property. If the locality has a change of planning, these lands are likely to be in the area of acquisition. This will cause disadvantages for investors if they, unfortunately, invest in a project on mixed land.
Regulations on licensing mixed residential land
Mixed residential land is licensed for construction on a case-by-case basis. In case the mixed land has no residential function, households will not be allowed to build, convert the purpose into residential land and separate the plot. People living on planned land often face difficulties when carrying out land procedures and building works.
In November 2018, the Department of Construction agreed to the proposal on the classification of criteria for granting construction permits to the following people:
Area occupies 50% of mixed residential land
Areas with land occupying more than 50% of the area will have the function of housing, apartments combined with services – commercial offices, without parks or public works. The residential land area that is inhabited by many residents and affects their lives will be officially licensed for construction.
Area occupies 30% of mixed residential land
Areas occupying 30% of the mixed land area, the main functional structure will be service – commercial – office buildings, no houses; factories, industrial factories causing pollution. In these areas, people have to relocate or get a construction permit for a limited time. In order to be licensed, people need to have a valid land use rights certificate.
Area of mixed residential land accounts for 20%
Any area with a ratio of mixed land accounting for 20% of the area, together with the current status of many houses and shacks, needs to attract reconstruction project investors. In this area, the Department of Planning and Architecture has proposed that no construction permit is granted and the localities will review and adjust it to existing residential land. After the adjustment is complete, people will be officially licensed to build.
Can mixed residential land be settled?
Mixed land can still be residential land, but it depends greatly on the planning situation of the locality and city. However, new construction will only be implemented if the conditions specified in Clause 2, Article 49 of the 2013 Land Law are approved as follows:
In case the land-use plan has been announced but there is no annual land use plan from the local government or the State, the land user is still allowed to use and exercise basic rights. in accordance with the provisions of the law.
In case there is an annual land-use plan at the district level, the land users in the area who need to carry out the procedures for land use purpose change and land recovery according to the plan may continue to exercise basic rights. mine. Except in cases of new construction of buildings, houses or planting perennial trees will not be allowed.
New policy in regulation of mixed residential land
Facing the problems of people in the area with mixed land planning, many projects have been suspended because they have not been licensed for construction. Recently, the People’s Committee of Ho Chi Minh City has just directed the Departments, branches and localities to review the planning in the area, implement the licensing of housing construction in the planning projects of new residential land and construction projects mixed land to ensure the legitimate rights of the people.
Specifically, on February 18, 2021, the Ho Chi Minh City Department of Construction issued an official dispatch (No. 2140) proposing the City People’s Committee to issue official construction permits to people in residential land planning projects for construction new and mixed soil.
The Department of Construction requested the City People’s Committee to assign the Department of Planning and Architecture to urgently study the regulations on management of planning and general urban architecture of Ho Chi Minh City in the direction of specific classification of functions in the subdivision planning. The Department requested localities to propose partial or overall adjustment of the planning project to suit the planning development orientation and socio-economic conditions. The objective is to settle people’s legitimate rights and interests, and serve as a basis for granting construction permits according to regulations. Then, submit it to the competent authority for approval and complete the adjustment of the planning by the end of 2021.
Mixed land is facing many difficulties because it is located in the annual land conversion planning area. Works and projects located in this area will have to wait for approval from the government. This is also one of the risks for investors to note when investing with mixed land.
Related article:
- Types of land use for commercial housing in Vietnam
- How to buy agricultural land in Vietnam without a red book?
Frequently asked questions
According to Article 49 of the 2013 Land Code. When the land is in the planning area, once the annual land-use plan has been issued, the land user will have full decision-making power over the assets of the land. Including the right to be transferred or sold.
Land users will be authorized by State agencies to transfer and inherit the land. However, they will not be allowed to build houses, or buildings or plant five-year trees. Not only that, mixed residential land, when having enough red book papers, will be compensated by the State when it is recovered.
In addition, the State does not adjust or cancel the adjustment of mixed residential land without announcing it to users. Property owners will have their rights restricted according to Clause 2, Article 49. Therefore, you must carefully consider this law before buying or transferring mixed residential land.
To answer this question, you must rely on article 75 of the 2013 land law, which provides for compensation for land before expropriation. Individuals and households that are using land but not leased land have annual land payments and have a certificate of land use right. Or if they are eligible to issue a certificate under the provisions of the Law, unless the certificate has not been issued, compensation will not be received.
Thus, mixed land owners need to have sufficient documents certifying valid residential land use rights will be compensated according to regulations when the land is recovered.
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