From August 1, the 2024 Land Law officially comes into effect. One of the new regulations attracting much attention is the removal of the “land price framework” previously stipulated in the 2013 Land Law.
The 2013 Land Law stipulated that the land price framework, issued by the Government every 5 years, served as the basis for provinces and cities to develop and publish local land price tables. However, two levels of land prices existed: the State framework price used for tax calculation and compensation, and the market price, which was usually much higher. The 2024 Land Law, following Resolution 18/NQ-TW 2022, has abolished the land price framework and instead establishes annual land price tables. Provincial People’s Committees will base these on principles, valuation methods, standards, and market land price fluctuations. This approach helps align land price tables with market prices but also increases the workload for local authorities.
The 2024 Land Law eliminates the “land price framework” stipulated in Article 113 of the 2013 Land Law. Under the previous regulation, the government issued the land price framework every 5 years for each type of land and region. If the market land price increased or decreased by more than 20% compared to the framework price, the framework price would be adjusted.
Specifically, under Article 113 of the 2013 Land Law, the Government issued the land price framework every 5 years for each type of land and region, serving as the basis for provinces and cities to develop and publish local land price tables. If the market land price increased or decreased by more than 20% compared to the framework price, the framework price would be adjusted.
This regulation is replaced by the 2024 Land Law with annual land price tables applicable to cases such as:
Calculating land use fees when the State recognizes land use rights or changes the land use purpose; Calculating annual land rent (except for cases of auction); Calculating land use tax and income tax from transferring land use rights; Calculating fees in land management, use, and administrative penalties; Calculating compensation to the State for damages; Calculating land use fees when recognizing land use rights or land rent for the entire lease period in a lump sum; Setting the starting price for auctioning land use rights that have been invested in infrastructure; Calculating land use fees when allocating land without auction; Calculating land use fees when selling State-owned houses to tenants.
The land price tables will be developed annually based on area and location and will be constructed by the provincial People’s Committee, submitted to the People’s Council for approval, and published from January 1, 2026. The provincial land management authority is responsible for adjusting the land price tables annually or as needed.
This law also stipulates four land valuation methods as follows:
Comparison: Based on the prices of similar plots of land that have been transferred on the market.
Income: Based on average net income divided by savings interest rate.
Surplus: Based on estimated total revenue minus estimated total development costs.
Land price adjustment coefficient: The land price in the price table multiplied by the land price adjustment coefficient.
Land valuation must adhere to market principles, correct methods, transparency, and ensure independence in the stages of determination, appraisal, and decision of land prices.
This bulletin is for informational purposes only regarding newly enacted legal regulations and is not intended for advising or applying to specific cases.
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Clause 5 of Article 236 of the 2024 Land Law adds the authority of commercial arbitration in resolving disputes arising from commercial activities related to land. According to the new regulation, disputes arising from commercial activities related to land can be resolved by the Court under civil procedural law or by Vietnamese commercial arbitration under the law on commercial arbitration.
People’s Committees at all levels are responsible for providing records and documents related to land management and use when requested by the Court or Vietnamese commercial arbitration as a basis for resolving land disputes.
Additionally, Clause 6 of Article 236 of the 2024 Land Law stipulates the authority of the arbitration council to collect evidence from relevant authorities, creating a crucial point for the arbitration dispute resolution method.
Compared to the old regulation, the 2024 Land Law has supplemented the authority of commercial arbitration in resolving land disputes. However, to be resolved at an arbitration center, these disputes must meet the condition of arising from commercial activities, based on the provisions of Clause 5 of Article 236 of the 2024 Land Law.
The 2024 Land Law takes effect from August 1, 2024.
This bulletin is for informational purposes only regarding newly enacted legal regulations and is not intended for advising or applying to specific cases.
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Clause 4 of Article 256 of the 2024 Land Law stipulates land use rights certificates, house ownership certificates, and residential land use rights certificates issued to household representatives before the 2024 Land Law takes effect can be reissued if members sharing land use rights in the household so desire. The new certificate will include the names of all members sharing land use rights. The determination of household members sharing land use rights to be listed on the certificate will be agreed upon by the members and will be legally binding.
The 2013 Land Law stipulated that households were among the entities eligible for land use rights certificates (LURC). However, according to the new regulations noted in Articles 3 and 4 of the 2024 Land Law, households are no longer among the entities eligible for land use rights certificates.
For LURCs previously issued to households, Clause 4 of Article 256 of the 2024 Land Law provides that certificates issued before the 2024 Land Law took effect can be reissued if members sharing land use rights in the household so desire. The new certificate will include the names of all members sharing land use rights. The determination of household members sharing land use rights to be listed on the certificate will be agreed upon by the members themselves and will be legally binding.
The “red book” and “pink book” are common terms used by the public based on the color of documents certifying land use rights or house ownership. Clause 21 of Article 3 of the 2024 Land Law stipulates that the land use rights certificate and the certificate of ownership of assets attached to land are legal documents by which the State confirms lawful land use rights and ownership of assets attached to land. Assets attached to land that are granted land use rights certificates and ownership certificates include houses and structures attached to the land according to the law.
Additionally, the 2024 Land Law adjusts the concepts related to LURCs commonly referred to as “red book” and “pink book.” According to the 2013 Land Law, Decree No. 88/2009/ND-CP, and Circular No. 17/2009/TT-BTNMT, these documents were officially named the Land Use Rights Certificate, House Ownership Certificate, and Certificate of Ownership of Other Assets Attached to Land.
From August 1, 2024, these documents will be officially named the Certificate of Land Use Rights, Ownership of Assets Attached to Land under the 2024 Land Law.
The 2024 Land Law takes effect from August 1, 2024.
This bulletin is for informational purposes only regarding newly enacted legal regulations and is not intended for advising or applying to specific cases.
Bizlawyer is honored to accompany our esteemed readers!
From August 1, the 2024 Land Law officially comes into effect. One of the new regulations attracting much attention is the removal of the “land price framework” previously stipulated in the 2013 Land Law.
The 2013 Land Law stipulated that the land price framework, issued by the Government every 5 years, served as the basis for provinces and cities to develop and publish local land price tables. However, two levels of land prices existed: the State framework price used for tax calculation and compensation, and the market price, which was usually much higher. The 2024 Land Law, following Resolution 18/NQ-TW 2022, has abolished the land price framework and instead establishes annual land price tables. Provincial People’s Committees will base these on principles, valuation methods, standards, and market land price fluctuations. This approach helps align land price tables with market prices but also increases the workload for local authorities.
The 2024 Land Law eliminates the “land price framework” stipulated in Article 113 of the 2013 Land Law. Under the previous regulation, the government issued the land price framework every 5 years for each type of land and region. If the market land price increased or decreased by more than 20% compared to the framework price, the framework price would be adjusted.
Specifically, under Article 113 of the 2013 Land Law, the Government issued the land price framework every 5 years for each type of land and region, serving as the basis for provinces and cities to develop and publish local land price tables. If the market land price increased or decreased by more than 20% compared to the framework price, the framework price would be adjusted.
This regulation is replaced by the 2024 Land Law with annual land price tables applicable to cases such as:
Calculating land use fees when the State recognizes land use rights or changes the land use purpose; Calculating annual land rent (except for cases of auction); Calculating land use tax and income tax from transferring land use rights; Calculating fees in land management, use, and administrative penalties; Calculating compensation to the State for damages; Calculating land use fees when recognizing land use rights or land rent for the entire lease period in a lump sum; Setting the starting price for auctioning land use rights that have been invested in infrastructure; Calculating land use fees when allocating land without auction; Calculating land use fees when selling State-owned houses to tenants.
The land price tables will be developed annually based on area and location and will be constructed by the provincial People’s Committee, submitted to the People’s Council for approval, and published from January 1, 2026. The provincial land management authority is responsible for adjusting the land price tables annually or as needed.
This law also stipulates four land valuation methods as follows:
Comparison: Based on the prices of similar plots of land that have been transferred on the market.
Income: Based on average net income divided by savings interest rate.
Surplus: Based on estimated total revenue minus estimated total development costs.
Land price adjustment coefficient: The land price in the price table multiplied by the land price adjustment coefficient.
Land valuation must adhere to market principles, correct methods, transparency, and ensure independence in the stages of determination, appraisal, and decision of land prices.
This bulletin is for informational purposes only regarding newly enacted legal regulations and is not intended for advising or applying to specific cases.
Bizlawyer is honored to accompany our esteemed readers!
12 Groups Eligible for Social Housing Policies
Compared to the Housing Law 2014, the Housing Law 2023 adds two new groups eligible for social support policies, increasing the total to 12 groups:
Additionally, to benefit from social housing policies, individuals and organizations in the above groups must meet certain conditions such as not owning housing in the area of the social housing project, not having previously purchased or rented social housing, not having received housing support policies in any form, or meeting income conditions as prescribed by law.
Removal of Management Units from the List of Eligible Buyers of Social Housing within the First 5 Years
Regarding the principle of selling, leasing, and renting social housing, the Housing Law 2023 stipulates that buyers and renters of social housing cannot resell the house within a minimum period of 5 years from the time of full payment. If they need to sell the house during this period, they can only sell it back to the social housing project investor or sell it to individuals eligible to buy social housing at a maximum price equal to the selling price in the contract with the social housing project investor. Personal income tax is paid according to tax laws.
Compared to the Housing Law 2014, the Housing Law 2023 has removed the management unit as an eligible buyer of social housing within the first 5 years after the buyer completes payment obligations. This new regulation simplifies the procedure for reselling social housing when needed and increases the seller’s autonomy in choosing the buyer.
The Housing Law 2023 takes effect from August 1, 2024.
This newsletter is intended to inform about newly enacted legal regulations and is not meant to be used as advice or applied to specific cases.
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The issue of the duration of apartment use is specifically regulated in Article 58 of the Housing Law 2023 as follows:
The duration of apartment use is determined based on the design documents, the actual usage time of the apartment as concluded by a competent authority’s inspection, and is clearly stated in the competent authority’s appraisal document according to the construction law. This duration is calculated from the acceptance date of the apartment for use.
When an apartment building has reached the end of its usable life according to design documents or has not yet reached the end of its usable life but is damaged, at risk of collapse, and unsafe for owners and users, the provincial People’s Committee must direct the inspection and quality assessment of the apartment building in accordance with Article 61 of the Housing Law 2023.
The announcement of an apartment building’s end of usable life is carried out in accordance with the Housing Law 2023 and construction law.
Compared to the Housing Law 2014, the Housing Law 2023 has removed the regulation on ownership duration and only regulates the duration of apartment use. When an apartment building has reached the end of its usable life and is at risk of collapse requiring demolition, the value of the apartment will no longer exist. However, the value of long-term land use rights and the residents remain intact, serving as the basis for compensation.
The Housing Law 2023 takes effect from August 1, 2024.
This newsletter is intended to inform about newly enacted legal regulations and is not meant to be used as advice or applied to specific cases.
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From August 1, 2024, the Housing Law 2023 will officially take effect. Compared to the Housing Law 2014, one of the new regulations garnering much attention is the provision for issuing Certificates of Ownership (Pink Books) for apartments in multi-story, multi-apartment buildings owned by individuals (mini apartments). This regulation provides a legal resolution, enabling many people, especially young couples and low-income individuals, to own their homes at a cost of about half that of standard commercial apartments.
To be considered for a Pink Book, a mini apartment must meet the following conditions:
Construction Conditions: The mini apartment must be constructed in accordance with the requirements for individual multi-story, multi-apartment buildings as guided by Official Letter No. 4157/BXD-QLN dated September 15, 2023, from the Minister of Construction.
Fire Safety Conditions: The mini apartment must meet the fire prevention and firefighting requirements as stipulated by the law for individual multi-story, multi-apartment buildings and ensure that access roads are available for firefighting vehicles to perform their tasks at locations with individual multi-story, multi-apartment buildings.
Responsibilities of Individuals in Housing Development: The owner of the mini apartment must comply with the following obligations: Adhere to the construction law regulations in the construction and renovation of housing; Comply with environmental protection laws during the construction and renovation of housing; Ensure the safety of people and property of the owner and users of adjacent structures during construction and renovation. In case of causing damage, compensation must be made according to the law, along with other responsibilities in housing development as prescribed by law.
The Housing Law 2023 takes effect from August 1, 2024.
This newsletter is intended to inform about newly enacted legal regulations and is not meant to be used as advice or applied to specific cases.
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The Real Estate Business Law 2023 imposes stringent conditions on real estate brokerage activities, including the termination of independent real estate brokerage and requiring individuals in this field to work for a company and receive remuneration and commissions from the company.
Requirement to Establish a Real Estate Brokerage Company
Article 61 of The Real Estate Business Law 2023 stipulates that organizations and individuals providing real estate brokerage services must establish a real estate service business and meet the following conditions: Have an operational service regulation; Have facilities and technical equipment that meet operational requirements; Employ at least one individual with a real estate brokerage certification and Submit company information to the provincial real estate business management authority where the company is established for management purposes before beginning operations.
For individuals practicing real estate brokerage, they must meet two criteria: Hold a real estate brokerage certification and Work within a real estate exchange service company or a real estate brokerage service company.
Compared to the provisions in Section 2, Chapter VII of the Real Estate Business Law 2014, the 2023 law introduces numerous additional regulations regarding the operational conditions of real estate businesses and eliminates the provision allowing individuals to practice independent real estate brokerage.
This regulation is expected to tighten control over “land brokers,” ensure order at projects, and maximize the rights and legal interests of individuals seeking to buy or lease real estate in these projects.
Prohibition on Receiving Brokerage Commissions in Cash
Clause 2, Article 48 of The Real Estate Business Law 2023 stipulates that project investors, real estate businesses, and real estate service companies must receive payment under real estate business contracts from clients through bank accounts opened at legally operating banks in Vietnam.
Clause 1, Article 63 of The Real Estate Business Law 2023 specifies that individuals practicing real estate brokerage may receive remuneration and commissions only from real estate service companies or real estate brokerage companies.
Thus, all brokerage fees and commissions under the new law must be received through the company and via bank transfer, not in cash.
The Real Estate Business Law 2023 will be effective from August 1, 2024.
This newsletter aims to provide information on newly issued legal regulations and is not intended as specific advice or application to individual cases.
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The Real Estate Business Law 2023 introduces stricter regulations for managing real estate transactions, including a requirement that these transactions must be conducted through accounts at credit institutions.
Termination of Cash Transactions for Real Estate
Following Article 48 of The Real Estate Business Law 2023, payments for real estate transactions and projects must be agreed upon by the parties in the contract and comply with legal regulations. Investors, real estate businesses, and real estate service companies must receive payments for real estate business contracts or real estate service contracts from clients through accounts opened at domestic credit institutions or branches of foreign banks legally operating in Vietnam.
Previously, The Real Estate Business Law 2014 required that payments in real estate transactions be agreed upon by the parties in the contract and comply with legal payment regulations.
The new regulation mandates that project investors, real estate businesses, and real estate service companies must receive payments through bank accounts. For small-scale individual real estate businesses, establishing a company and receiving payments through a bank account are not mandatory.
The Real Estate Business Law 2023 will be effective from August 1, 2024.
This newsletter is intended to provide information about newly issued legal regulations and is not meant for specific advice or application to individual cases.
Bizlawyer is pleased to accompany you!
