Housing transactions that do not require a land use right certificate in Vietnam

BichNgoc March 21, 2022

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Posts : Housing transactions that do not require a land use right certificate in Vietnam In the section LSX Lawfirm

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In Vietnam, land is owned by the entire people, the State is the sole representative of the owner. However, the State does not directly own and use land; but allocates or leases land to individuals and organizations and recognizes land use rights through the issuance of land use right certificates. Since then, individuals and organizations have the complete right to use and dispose of the entire allocated land area; including the exercise of housing transaction rights. On the other hand, not all housing transactions require a land use right certificate to be carried out. So when do housing transactions do not require a land use right certificate? LSX Lawfirm will give you an article about: “Housing transactions that do not require a land use right certificate”, as follows:

Legal grounds

– Civil Code 2015;

– Land Law 2013;

– Law on Housing 2014;

– Decree 99/2015/ND-CP of the Government detailing and guiding the implementation of a number of articles of the Law on Housing.

Housing transactions that do not require a land use right certificate

Certificates of land use rights

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. Laws of people with land use rights; house ownership rights and ownership of other land-attached assets (According to Clause 16, Article 3 of the 2013 Land Law).

Also in Article 158 of the 2015 Civil Code clearly stipulates: “Ownership includes the right to posses; use and dispose of the property of the owner in accordance with the law.”

Accordingly, a land use right certificate is an important legal document that helps to establish the owner’s right to use; and dispose of the area stated in the paper and ownership of houses and other assets. associated with that land.

This includes housing transactions through the following forms: purchase, sale, lease, lease-purchase of housing, transfer of commercial housing purchase and sale contract, donation; exchange, inheritance, mortgage, capital contribution, loan, stay and authorization to manage housing.

Moreover, it is also a legal basis to settle disputes over land and housing arising in the process of use; because it recognized and protected by the State as mentioned above.

You can also refer to the article related to Regulations on apartment ownership or In case the company’s head office address is located in an apartment building in Vietnam or Transfer of investment projects associated with the transfer of land use rights in Vietnam

Foreigners buy apartments of Vietnamese individuals

Housing transactions that do not require a land use right certificate in Vietnam

According to the provisions of Article 117 of the Law on Housing 2014, there detailed regulations on forms of housing transactions: “Housing transactions include forms of sale, purchase, lease, lease purchase, and transfer. contracts for commercial housing purchase; donation, exchange, inheritance, mortgage, capital contribution, loan, stay and authorization for housing management.”

In order for a house to participate in the above transactions; the house must fully satisfy the conditions specified in Clause 1, Article 118 of the Law on Housing 2014. In particular, the most important condition is the need to have a use right certificate. land use. However, there are also housing transactions that do not require a land use right certificate, which are specified in Clause 2, Article 118 of the Law on Housing 2014

As follows:

“2. For the following housing transactions, the house is not required to have a certificate:
a) Buy, sell, mortgage future houses;
b) Organize the donation to houses of gratitude or charity;
c) Purchase, sale, lease purchase of state-owned houses; purchase, sale, lease-purchase of social housing, housing for resettlement not under state ownership; …
d) Renting, lending, giving permission to stay, or authorizing housing management;
d) Receive inheritance of housing;
e) Transfer of the contract of purchase and sale of a commercial house built in a housing construction investment project; including the case where the investor has received the house but has not yet submitted a request to the state agency. has the authority to issue the certificate for that house.
The papers proving the housing conditions for participating in the transaction specified in this Clause must comply with the Government’s regulations.”

According to the above regulations, there 06 cases mentioned above that do not need a land use right certificate but are still able to participate in housing transactions. However; in these cases, there must be papers proving the housing conditions involved in the transaction; according to the Government’s regulations (stipulated in Article 72 of Decree 99/2015/ND-CP guiding the Law on Housing).

Thus, in order for housing transactions to not require the above-mentioned land use right certificates; the transaction must have alternative papers to prove the ownership and also serve as a legal basis to perform the transaction; translation as well as limiting unnecessary disputes and risks later on.

Contact LSX Lawfirm

Finally, hope this article is useful for you to answer the question about: “Housing transactions that do not require a land use right certificateable objects in Vietnam”. If you need any further information, please contact LSX Law firm : +84846175333 or Email: [email protected]