Regulations on service land in Vietnam

by Anh Việt

Service land is a type of land that is certainly no stranger to people today. However, not everyone knows the legal provisions related to this type of land. So about the matter “Regulations on service land in Vietnam” Let’s find out with LSX in the article below.

Legal grounds

  • Land Law 2013

What is service land?

Service land (also known as commercial land) is an area of ​​land with favorable locations for business and trade granted from the acquisition of agricultural land for the construction of projects.

In order to use agricultural land for different purposes such as serving projects, the State has policies to recover agricultural land. Accordingly, people will lose this part of arable land and this will directly affect the occupation as well as the people’s income. Therefore, the law has its own provisions to compensate and support people in cases of land expropriation.

Specifically, service land is the part of land that the State compensates for households whose more than one-third of agricultural land has been acquired to support career change. 50 square meters and when the local government completes the construction of the infrastructure will conduct a draw for a specific number of plots.

How long is the term of service land?

Unlike many other types of land, the service land use term can be used stably or for a limited time, specifically:

For service land for stable and long-term use

Clause 4, Article 35 of the Land Law 2013 stipulates that commercial, service, and non-agricultural production facilities of households and individuals are being used stably, but are not land allocated by the State for a definite term. The lease has a stable and long-term use period.

If this is the case, the land use term recorded in the land use right certificate (Red Book, Pink Book) is recorded as “Long-term”.

For service land with definite term

For land allocated by the State to organizations, households, individuals or leased for use for service purposes, the use term shall be considered and decided on the basis of investment projects or applications for land allocation. land, lease land but not more than 50 years.

For projects with large investment capital but slow capital recovery, investment projects in areas with difficult socio-economic conditions, and areas with extremely difficult socio-economic conditions that require a long period of time. For a longer term, the term of land allocation or land lease shall not exceed 70 years.

Upon the expiration of the time limit, if the land user wishes to continue using it, the State shall consider extending the land use term but not exceeding the time limit for land allocation or land lease for the first time.

Characteristics of service land

Each type of land will have its own characteristics to distinguish it, and so is the service land. Here are the most noticeable features:

• Convenient location: Usually located inside or adjacent to urban areas, surrounded by a perfect transportation system and infrastructure.

• The land has a nice location, good infrastructure conditions, but the price is cheaper than the project land

• Be adequately compensated when the State implements land acquisition.

• When receiving service land, families will not have to pay any additional fees if they want to convert it into residential land.

• The infrastructure of the service land is built before or at the same time as the urban construction. Create many advantages for people to develop the economy.

• Construction of solid and high-rise buildings can be carried out, but a construction permit is required.

Regulations on service land in Vietnam

The provisions on service land are fully promulgated in the 2013 revised Land Law. In which, some of the issues that are of most concern are as follows:

Regulations on transfer, sale and purchase

This issue has been regulated in Article 188 of the revised Land Law 2013. Accordingly, the owner has the right to buy, sell, transfer, inherit, donate or mortgage the compensated service land. However, the following conditions must be met:

• Owner has a Certificate issued by the State.

• The land is determined by the competent authority to be undisputed.

• Land is not distrained by the Court.

• Land is in use period that the State grants the right to the owner.

In case the owner has not been granted the Certificate, he/she is temporarily unable to carry out the purchase, sale or transfer. If you still intentionally hand-write the sale and transfer paper, this document has no legal value and will not be resolved when there is a problem.

Regulations on issue of red book

After finding out what service land is, the issue of issuing red books for this type of land is also of great interest. According to regulations, service land is compensated by the State for people for long-term use. Because service land owners themselves do not have a red book, they do not have the right to transfer them to others.

If it is necessary to make a red book, people first need to carry out procedures to change the purpose of land use from service land to residential land. The process of granting a red book for residential land has been clearly regulated, helping owners not to face difficulties with their serviced land.

Regulations on housing construction

Building a house on service land is also equivalent to the purpose of housing in combination with business. Therefore, owners can still build permanent houses and high-rise buildings as long as they comply with the planned local planning route. Before building a house, the owner needs to apply for a building permit.

Experience of buying service land

If you are really interested in the service land model at that time, you can learn a few more skills below:

Learn carefully the legal provisions on service land

The purchase of serviced land will come with some unfortunate risks as studied and analyzed above, therefore, buyers need to learn and explore the legal procedures when implementing service land purchase to avoid these problems. It is entirely possible for damage to occur in the transaction payment process.

Consider the risks when buying serviced land

Offering the service can completely bring buyers a super profit, but it also comes with a lot of unfortunate risks, because most of the service land at the time of signing does not have the owner’s red book or land use right recognition ) , the waiting period for land allocation will be relatively long and the area of ​​land prescribed in books and in practice may not be completely correct .

Be careful in the stages of depositing money to buy service land

As mentioned above, most service land is land without the owner’s red book. However, if the owner of the land you want to buy is waiting for the issuance of a red book or a similar certificate, you should not buy it outright. You should protect yourself when you are paying the transaction with the owner of the land and clearly identify the relevant real estate books to hand over the full amount.

However, if you are really satisfied with the land you are aiming for, you can completely deploy a deposit. Both you and the owner will write a receipt and set a release date for the main purchase and sale. This is a way to help you keep the land you are satisfied with without worrying about being bought a non-transparent land.

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Frequently asked questions

Can service land be issued with a red book?

From a legal perspective, service land is land allocated by the State to compensate those whose agricultural land is recovered over 30% of the total agricultural land area of ​​the household. This type of land has been allocated for long-term use but has not yet had a red book. Therefore, the land user cannot transfer. In fact, service land will be issued with a land use right certificate (red book) when carrying out the procedures for converting service land to residential land.

How long does it take to make a service land red book?

The time for issuance of certificates of service land use rights specified in Clause 40, Article 2 of Decree No. 01/2017/ND-CP amending the decree guiding the Land Law is no more than 30 working days.
However, in some cases, such as when your service land plot is re-measured, you have not fulfilled your financial obligations on the land, etc., the time for issuing a service land use right certificate may be longer.

Can service land be converted to residential land?

Pursuant to Point e, Clause 1, Article 57 of the 2013 Land Law, which regulates the change of land use purpose, cases of land use purpose change that must be approved by a competent state agency include:
“e) Conversion of non-agricultural land which is not residential land to residential land;”
Thus, service land is non-agricultural land, so it should be converted to residential land.

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