What Is Land Exchange? The Conditions For It In 2023

Land exchange is a unique civil agreement that involves the transfer of land and land use rights between parties, as per the terms agreed upon. It is governed by the legal provisions and regulations. Now, let’s delve into the concept of land use rights transaction with the assistance of NT INTERNATIONAL LAW FIRM, as discussed in the following article.

What is land exchange?

Land use rights exchange, also known as “Chuyển đổi quyền sử dụng đất” in Vietnamese, is a specific type of land transaction within Vietnam for agricultural land. It involves the mutual transfer of land use rights between individuals or households residing in the same commune, ward, or town. This means both parties act as both givers and receivers of the land use rights.

Key Features:

• Limited to agricultural land: Only agricultural land can be exchanged in this way.
• Local participants: Individuals or households must reside within the same locality.
• Dual role: Both parties are simultaneously converters (givers) and recipients (receivers) of land use rights.
• Value adjustments: If the land values differ, one party compensates the other for the difference based on their agreement.
• Horizontal exchange: If the values are equal, a direct swap without any additional payment can occur.

Example:

• Mr. A and Mr. B, both residing in the same commune, own agricultural land plots.
• Mr. A’s plot is 1,000 square meters, while Mr. B’s is 1,200 square meters.
• They agree to exchange their land use rights.
• If Mr. B considers his land worth more, Mr. A may compensate him for the difference in value as per their agreement.

Benefits:

• Land use rights exchange can allow individuals or households to consolidate their land holdings or acquire land in more desired locations.
• It can also provide a way for families to transfer land ownership within the family.

Considerations:

• It’s crucial for both parties to reach a clear agreement on the terms of the exchange, including the land value, any compensation, and the exchange process.
• Legal professionals can provide valuable guidance to ensure the transaction is conducted correctly and protects the rights of all parties involved.

What is land exchange?

The conditions for land exchange

Legal Basis:

• 2013 Land Law, Article 188
• 2013 Land Law, Articles 189, 190, 191, 192, 193, 194
• 2013 Land Law, Clause 3, Article 167

General Conditions:

According to Article 188 of the 2013 Land Law, land users can exchange, transfer, sublease, donate, inherit, mortgage land use rights, and contribute capital with land use rights when the following conditions are met:

1. Possession of a Land Use Rights Certificate: Except for specific cases outlined in Clause 3, Article 186 and inheritance cases in Clause 1, Article 168 of the 2013 Land Law, all land users must possess a valid Land Use Rights Certificate.
2. No Land Disputes: The land in question must not be involved in any ongoing disputes.
3. No Distraint: The land use rights must not be under distraint to ensure judgment enforcement.
4. Valid Land Use Term: The exchange must occur within the valid period of the land use term.

Additional Conditions:

In addition to the above, land users must also meet specific conditions based on the type of transaction they are undertaking, as outlined in Articles 189, 190, 191, 192, 193, and 194 of the 2013 Land Law.

Registration Requirement:

All land use rights exchange agreements must be registered at the land registration agency. The exchange takes effect from the date of registration in the cadastral book.

Contractual Requirements:

Both parties involved in a land use rights exchange must enter into a notarized and authenticated transfer contract. This contract must be established according to the provisions of Clause 3, Article 167 of the 2013 Land Law, which specifies the form and notarization/authentication requirements for various land use rights transfer agreements.

Key Takeaways:

• Land use rights exchange can only be conducted if certain conditions are met, as defined by the 2013 Land Law.
• These conditions include holding a valid Land Use Rights Certificate, having no land disputes or distraint, and being within the valid land use term.
• Additional conditions may apply depending on the specific type of transaction.
• All land use rights exchange agreements must be registered and require a notarized/authenticated transfer contract.

Seeking professional guidance:

Understanding and complying with these legal requirements is crucial for a successful and legal land use rights exchange. It’s highly recommended to seek assistance from legal professionals to ensure proper documentation, adherence to regulations, and protection of your rights.

The conditions for land exchange

The procedure of land exchange

Legal Basis:

• 2013 Land Law, Articles 188, 189, 190, 191, 192, 193, and 194
• 2013 Land Law, Clause 3, Article 167
• Decree 45/2014/ND-CP, Article 29

Step 1: Notarized Contract:

1. Contact Notary Office: Both parties involved must contact a notary office to establish a land use rights transfer contract (purchase, sale, gift, inheritance, etc.) and have it notarized.
2. Required Documents:
   • Land Use Rights Certificate
   • Household registration books of both parties
   • Marriage registration certificate (if applicable)
   • Certificate of marital status (if not married)

Step 2: Land Registration Office:

1. Application for Land Use Rights Conversion: Submit the application at the Land Registration Office of the district where the land is located.
2. Required Documents:
   • Application for registration of changes
   • Notarized land use rights transfer contract
   • Certificate of land use rights, house ownership, and assets attached to land (original)
   • Copies of ID card/CCCD and household registration books of both parties
   • Additional documents as required by the Land Registration Office
3. Processing Time: 15-30 working days

Step 3: Tax Declaration and Payment:

1. Declare Financial Obligations: After receiving notification from the authorities about tax obligations, declare financial obligations at the tax department.
2. Required Documents: Copies of the documents submitted to the Land Registration Office
3. Processing Time: 7-10 working days

Step 4: Receive Results:

1. Submit Tax Payment Receipt: Contact the Land Registration Office to submit the tax payment receipt.
2. Receive Land Use Rights Transfer: Receive the results after the land use rights have been transferred.

Additional Notes:

• It is recommended to seek professional guidance from legal professionals or land registration experts to ensure the process is completed correctly and smoothly.
• The specific requirements and processing times may vary depending on local regulations.
• Fees may apply for notarization, contract registration, and tax declaration.

Compliance and Legality:

Following these steps and adhering to legal requirements outlined in the 2013 Land Law and Decree 45/2014/ND-CP ensures the land use rights exchange process is conducted legally and protects the rights of both parties involved.

The procedure of land exchange

How to differentiate between land exchange and land conversion

Here’s a summary of the key differences between land exchange and land conversion:

Conclusion:

Land exchange and land conversion are distinct processes with separate requirements. Clearly understanding the differences is crucial for ensuring legal compliance and successful completion of your desired land use action. If you have any doubts, consult with legal professionals or land registration experts for accurate guidance.

NT International Law Firm has addressed the matter of land exchanges and the conditions that must be met in order to conduct such exchanges. If you have any further questions or concerns regarding land or real estate, please contact our law firm immediately for expert legal advice.

If you require any legal assistance, please feel free to reach out to us via phone at 090 252 4567 or through email: info@ntpartnerlawfirm.com. At NT INTERNATIONAL LAW FIRM, our team is committed to offering you prompt and personalized advice.

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