What Is Land Without a Red Book? What Are Needed To Buy That Land?

What is land without a Certificate of Land Use Rights (Red Book)? What kinds of documents are needed to buy the land that does not have a Certificate of Land Use Rights? Let’s learn the answers to those questions together through this article from NT INTERNATIONAL LAW FIRM.

What is land without a Red Book?

In Vietnam, a red book, also known as a Certificate of Land Use Rights, serves as a crucial document establishing ownership and rights to land usage. However, not all land parcels possess red books. Land without a red book refers to real estate that has a land use certificate but lacks a red book due to various reasons.

Three Primary Situations of Land Without a Red Book:

1. Ineligibility for Red Book Issuance: Certain land parcels may not meet the necessary criteria for red book issuance. These criteria typically involve land use restrictions, zoning regulations, or pending legal disputes that prevent the issuance of a red book.

2. Pending Red Book Issuance: In some cases, land parcels are eligible for a red book but have not yet been issued one due to administrative or technical delays. This may occur during the process of land registration, documentation verification, or red book preparation.

3. Inheritance by Foreigners: When land is inherited by foreign individuals, they are not automatically entitled to a red book. Instead, they receive a Certificate of Land Use Rights for Foreigners, which grants them similar rights to a red book but with certain limitations.

Can land without a Red Book be transferred?

Legal Basis for Land Transfer Without a Red Book

According to the provisions in Clause 1, Article 168 and Clause 3, Article 186 of the 2013 Land Law, there are two instances where land transfer without a red book is legally permissible:

1. Inheritance of Land Use Rights: In cases of inheritance, the inheritor can exercise land transfer rights even if they do not possess a red book, provided they have a Certificate or are eligible to receive one. This means that the inheritor can transfer the inherited land without the need for a red book.

2. Inheritance by Foreigners or Vietnamese Expatriates: When land is inherited by a foreigner or a Vietnamese residing abroad who is not eligible to own a house attached to the land in Vietnam, the inheritor will not be granted a red book. However, they are still permitted to transfer the inherited land.

Mandatory Conditions for Land Transfer

Regardless of whether a red book is present or not, the following conditions must be met for any land transfer to be legally valid:

1. Possession of a Certificate: Except for the two exceptions mentioned in Clause 3, Article 186 and Clause 1, Article 168 of the 2013 Land Law, land transfer requires a valid Certificate.

2. Undisputed Land: The land involved in the transfer must not be subject to any ongoing disputes or ownership conflicts.

3. Unencumbered Land Use Rights: The land use rights associated with the property must not be subject to any encumbrances or restrictions that could hinder the transfer process.

4. Valid Land Use Term: The land transfer must take place within the valid land use term specified for the property.

Conclusion

While land without a red book may pose certain challenges, such as limited transferability and potential legal complications, it is essential to recognize the specific circumstances under which land transfer without a red book is legally permissible in Vietnam. Understanding these legal provisions can help individuals navigate land transactions effectively and protect their property rights.

Can land without a Red Book be transferred?

What documents are need to buy land without a Red Book?

Buying Land Without a Red Book (Registering for a Red Book)

To register for a Red Book, you will need to prepare the following documents:

1. Application for registration and issuance of Certificate of land use rights, ownership of housing and other assets attached to land: This is a standard form that can be obtained from the land registration office.

2. Proof of ownership or right to use the land: This could be a land use right certificate, a purchase agreement, or any other document that proves your legal claim to the land.

3. Documents of fulfillment of financial obligations: If you have any outstanding financial obligations related to the land, you will need to provide documentation of payment.

4. Documents related to the exemption or reduction of financial obligations: If you are eligible for any exemptions or reductions in financial obligations related to the land, you will need to provide supporting documentation.

Real Estate Transfer

To transfer real estate in Vietnam, you and the seller will need to prepare the following documents:

Stage 1: Notarization of land use rights transfer contract

1. Draft contract: This is a legal document that outlines the terms of the sale, including the price, payment terms, and ownership transfer.

2. Certificates of land use rights: Both the buyer and seller will need to provide their Certificates of Land Use Rights.

3. Request form for notarization of Contract: This is a standard form that can be obtained from the notary office.

4. Copies of ID card and household registration book of the parties: Both the buyer and seller will need to provide copies of their ID cards and household registration books.

5. Documents proving common/private assets: If the land is being sold as a marital asset, you will need to provide a Marriage Certificate. If the land is being sold as a private asset, you will need to provide a certification of singleness.

6. Copies of relevant documents according to legal regulations: This may include any additional documents required by law, such as environmental impact assessments or building permits.

Stage 2: Submit application

1. Complete profile: Once you have completed all of the required documents, you can submit them to the land registration office.

2. Application for registration of changes in land and assets attached to land: This is a standard form that can be obtained from the land registration office.

3. Registration fee declaration: This is a standard form that can be obtained from the land registration office.

4. Personal income tax declaration: If you are subject to personal income tax on the sale of the land, you will need to provide a tax declaration form.

5. Non-agricultural land use tax declaration: If you are subject to non-agricultural land use tax, you will need to provide a tax declaration form.

6. Tax registration declaration: If you are registered for tax, you will need to provide a copy of your tax registration certificate.

7. Real estate location map: This is a map that shows the location of the property.

After receiving all of the required documents, the land registration office will review the application and approve or deny the transfer. The transfer process typically takes about 10 working days.

What documents are need to buy land without a Red Book?

Purchasing Land Without a Red Book: Exceptional Scenarios

While the absence of a red book, also known as the Certificate of Land Use Rights, typically hinders land transactions, there are specific circumstances where land purchases can proceed despite the lack of a red book.

Inheritance of Land Use Rights

In cases of land inheritance, the inheritor can exercise land use rights even if they do not possess a red book, provided they have a Certificate or meet all the requirements to be granted one. This stipulation is based on Article 168, Clause 1 of the 2013 Land Law. This means that the inheritor can proceed with land transactions without the need for a red book.

Inheritance by Foreigners or Vietnamese Expatriates

When land is inherited by foreigners or Vietnamese residing abroad who are not eligible to own houses associated with land use rights in Vietnam, they will not be granted a red book. However, despite the absence of a red book, they can still transfer or donate the inherited land use rights. This provision is outlined in Clause 3 of Article 186 of the 2013 Land Law.

Conclusion

While these two scenarios provide exceptions to the general rule of requiring a red book for land transactions, it is crucial to note that they are specific circumstances. Consulting with an attorney specializing in land law is essential to understand the applicable regulations and navigate the complexities of land transactions without a red book.

In situations where the red book is unavailable, it is still possible to proceed with purchases

Risks when buying land without a red book

Purchasing land without a red book poses various risks and unnecessary legal consequences. Many individuals, driven by the desire to save money, tend to overlook these risks and proceed with the purchase, hoping to legalize the property later on. However, it is important to note that if buyers have acquired land without a red book between July 1, 2014, and the present, they will encounter numerous risks and endure unfavorable legal outcomes.

1. Inability to Verify the Origin of the Land

• Legal Basis: Article 100 of the 2013 Land Law stipulates that land use rights must be registered with the local land registration office. Without proper registration, it becomes difficult to verify the origin of the land and identify potential encumbrances or ownership disputes.

Risks when buying land without a red book

2. Difficulties in Transferring Ownership

• Legal Basis: Clause 3, Article 188 of the 2013 Land Law states that activities such as transfer, lease, sublease, inheritance, donation, and mortgage of land use rights must be registered at the local land registration office. Without a red book, proving ownership and transferring the land become challenging, as the transfer is only considered valid after it has been registered in the cadastral book.

3. Inability to Mortgage the Land

• Legal Basis: Article 188 of the 2013 Land Law stipulates that mortgage of land use rights can only be carried out when there is a red book. Without a red book, banks or financial institutions will not accept mortgages to borrow money due to the associated risks.

Inability to Mortgage the Land

4. Limited Resale Potential

• Legal Basis: Clause 3, Article 188 of the 2013 Land Law states that activities such as transfer, lease, sublease, inheritance, donation, and mortgage of land use rights must be registered at the local land registration office. Without a red book, these activities become difficult, making the land less attractive to potential buyers.

5. Restrictions on Land Use Rights

• Legal Basis: Article 188 of the 2013 Land Law stipulates that land use rights can only be exercised in accordance with the purpose specified in the Certificate of Land Use Rights. Without a red book, land use rights may be limited or restricted due to the lack of proper documentation proving the intended use of the land.

6. No Compensation for Land Acquisition

• Legal Basis: Article 96 of the 2013 Land Law states that land acquisition for public purposes must be carried out in accordance with the law and that compensation must be provided to the land users. However, without a red book, proving land ownership and establishing compensation rights become difficult.

7. Difficulties Obtaining Building Permits

• Legal Basis: Decree 53/2017/ND-CP stipulates that building permits are granted based on various factors, including land use rights. Without a red book, proving land use rights becomes challenging, making it difficult to obtain building permits.

Conclusion

Buying land without a red book poses significant risks and limitations, as it can lead to difficulties in verifying ownership, transferring the land, obtaining financing, and exercising land use rights. It is advisable to carefully consider these risks and consult with an attorney specializing in land law before proceeding with such a purchase.

It is difficult to get a construction permit

NT International Law Firm has addressed the question of what land without a Certificate of Land Use Rights is and what kinds of documents are needed to buy land of that kind. 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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