How To Transfer Your Red Book To Your Children

The transfer of real estate titles is a significant procedure that individuals will inevitably encounter at some point in their lives. It involves the alteration of property ownership and the recording of the Land Use Rights Certificate. In this regard, the following article by NT International Law Firm aims to provide valuable insights into the process of changing the name on your child’s red book.

What is a red book?

Legal Basis:

• 2013 Land Law, Clause 16, Article 3
• 2013 Land Law, Clause 1, Article 188

Definition:

A “Red Book” is a slang term commonly used to refer to the “Certificate of Land Use Rights, Ownership of Houses, and Other Assets Attached to Land.” This official document, issued by the State, confirms the land use rights, housing ownership, and ownership of other assets attached to land for individuals or entities as defined in the 2013 Land Law (Clause 16, Article 3). The nickname “Red Book” originates from the color of the certificate’s cover.

The conditions of transferring Red Books

According to the 2013 Land Law (Clause 1, Article 188), to transfer a Red Book to a child, the land user must meet the following conditions:

• Possession of the Red Book: The land user must hold a valid Red Book, except in cases specified in Clause 3, Article 186 and inheritance cases as per Clause 1, Article 168 of the 2013 Land Law.
• Absence of Disputes: The land in question must not be involved in any legal disputes.
• No Distraint: Land use rights should not be distrained to ensure judgment enforcement.
• Valid Land Use Term: The transfer must occur within the valid term of the land use rights.
• Exclusion from Non-Transferable Cases: The transferred real estate must not be subject to restrictions on transfer or donation as per Article 191 of the 2013 Land Law.

Additional Notes:

• The specific process and requirements for transferring a Red Book may vary depending on local regulations and the specific circumstances of the transfer.
• Individuals seeking to transfer a Red Book should consult with legal professionals for guidance and ensure compliance with all applicable laws and regulations.

Conclusion:

The Red Book plays a crucial role in Vietnamese land ownership and serves as a vital legal document confirming land use rights and property ownership. Understanding the definition, legal basis, and transfer conditions of the Red Book is essential for individuals involved in land transactions and property management.

The conditions of transferring Red Books

How to transfer your Red Book to your children

Legal Basis:

• 2013 Land Law, Point a, Clause 3, Article 167
• Real Estate Law

Step 1: Notarization of Donation Contract:

1. Donation Contract Creation: Prepare a donation contract specifying the details of the transfer and the relationship between the donor (parent) and recipient (child).
2. Notarization: Submit the following documents to a notary practice organization for notarization:
   • Red Book copy.
   • Documents verifying relationship (birth certificate, marriage certificate).
   • ID/passport copies of donor and recipient.
   • Household registration books of both parties.
   • Notarization request form.
   • Tax and registration fee certificates.
   • Donation contract (optional).

Step 2: Red Book Name Transfer:

1. Application Submission: Submit the following documents to the district People’s Committee where the land is located:
   • Application for transfer of housing ownership and land use rights.
   • Donor’s Red Book.
   • Estate division agreement (if applicable).
   • Relationship proof documents (birth certificates, marriage certificates).
2. Dossier Verification: The Land Registration Office verifies the submitted documents.
3. Tax Fulfillment: The Land Registration Office transfers the dossier to the tax authority for tax payment.
4. Registration Fee Payment: Pay the personal income tax registration fee.
5. Red Book Delivery: After completing tax payments, return to the Land Registration Office to receive the transferred Red Book.

Note:

• This information provides a general overview of the process and legal basis for transferring a Red Book to children.
• Specific procedures and requirements may vary depending on local regulations and individual circumstances.
• It is recommended to consult with legal professionals for detailed guidance and assistance in ensuring compliance with all legal requirements.

How to transfer your Red Book to your children

Costs, fees for the procedure of transferring your Red Book to your children

Legal Basis:

• 2007 Personal Income Tax Law (amended and supplemented in 2012), Article 4.
• Decree No. 140/2016/ND-CP on cases where registration fees are not required, Clause 10, Article 9.

Exemptions:

• Personal Income Tax: According to the 2007 Personal Income Tax Law, income from inheritance or gifts of real estate between family members, including parents and children, is exempt from personal income tax. This exemption also applies to adoptive parents and children, in-laws, and grandparents and grandchildren.
• Registration Fees: Decree No. 140/2016/ND-CP stipulates that cases of receiving houses and land as gifts between the aforementioned family members are exempt from registration fees when transferring Red Books.

Declaration Requirements:

• Even if exempt from tax and fees, both the parent transferring the Red Book and the child receiving it must submit tax declarations and fee declarations.
• These declarations must be submitted simultaneously with the application for Red Book name change.
• Both parties must present complete documentation according to regulations to the relevant authorities.

Conclusion:

While transferring a Red Book to children is exempt from personal income tax and registration fees under specific family relationships, both parties still need to submit declarations at the time of the transfer. Consulting legal professionals for guidance and ensuring compliance with all requirements is crucial for a smooth and successful transfer process.

Costs, fees for the procedure of transferring your Red Book to your children

Time-frame for the procedure

Legal Basis:

• Decree 43/2014/ND-CP, Clause 2, Article 61 (amended by Decree 01/2017/ND-CP, Clause 40, Article 2): Time limit for issuing Red Books – 30 days.
• Decree 01/2017/ND-CP, Clause 40, Article 2: Time limit for Red Book name transfer – 10 days from receiving valid documents (excluding holidays, commune document processing time, financial obligations fulfillment time, illegal land use investigation time, and appraisal time).

Practical Considerations:

• High document volume at Land Registration Offices often leads to longer processing times than the legal limit.
• Name transfer registration must occur within 30 days of the transfer/donation contract to avoid fines.

Notes:

• Ensure all documents are valid and complete before submission to minimize processing time.
• Consider consulting legal professionals for guidance and assistance throughout the process.

Conclusion:

The legal timeframe for issuing Red Books and transferring ownership is 30 days and 10 days, respectively. However, practical factors can lead to delays. Timely submission of valid documents and proper legal guidance are crucial for a smooth and efficient transfer process.

Time-frame for the procedure

Lawyer’s advice

NT International Law Firm has addressed the question of how to transfer your Red Book to your children. 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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