Land use rights, certification, plot division and consolidation: notable changes in the draft resolution

A very notable new point in the draft Resolution is the permission for economic organizations, individuals, as well as organizations with foreign investment capital to sell assets attached to land leased by the State with annual rental payments. This is an important change compared to the past, when land lessees paying annual rent were often restricted in their right to transfer, causing assets attached to land to lose their liquidity. However, this right can only be exercised when the land user meets all conditions, specifically, the assets must be legally constructed, not violate regulations on land use purpose conversion, and must be in accordance with approved planning.

This new regulation brings many positive impacts. For investors, this is an opportunity to increase the ability to transfer and exploit the value of assets, especially in the context of projects that may change business objectives or encounter financial difficulties. Being allowed to sell assets attached to land with annual rental payments will help them recover capital faster, restructure business operations, and reduce risks when making long-term investments. On the market side, this mechanism will promote the flexibility and liquidity of real estate, helping assets not be “frozen” just because of legal problems related to land use rights.

From a state management perspective, this regulation also contributes to increasing the legal supply of real estate, encouraging the participation of many new investors in unfinished projects, thereby limiting the situation of abandonment and waste of land. However, to ensure that implementation is not exploited, the State still requires assets attached to land to be built legally, according to planning, and establish a strict monitoring mechanism.

Thus, this is a desirable improvement, both ensuring the rights of investors and creating conditions for the real estate market to operate more transparently and effectively, while also being consistent with the orientation of harmonizing interests between the State – investors – society.

In addition, the draft Resolution also has an important new point related to the procedures for issuing Land Use Right Certificates (commonly known as “red books”). According to the new regulations, households and individuals who are using land stably, with a temporary Certificate issued by a state agency after October 15, 1993, will be considered for the issuance of an official Certificate without having to compare it with the suitability of the land use plan.

This regulation is considered a big step forward, removing obstacles that have existed for many years in practice. Previously, there were many cases where people, even though they had used the land stably for a long time and had no disputes, could not be granted an official Certificate because the land was “not in accordance with the planning”. This caused a series of consequences such as: people could not exercise the rights to transfer, mortgage, donate, and inherit the land; the land value was “suspended” and could not promote economic efficiency; at the same time, it created a mentality of frustration and prolonged complaints.

Loosening regulations towards recognizing official Certificates in these cases will bring practical benefits to millions of households and individuals. People will be fully guaranteed the rights of land users, can legalize assets, participate in civil transactions, borrow from banks or invest in business conveniently. This is also a measure to contribute to reducing complaints and disputes in the land sector – which always accounts for a high proportion of the total number of administrative cases in our country.

At the same time, from a management perspective, this regulation also helps the State increase the effectiveness of land management by bringing “temporary” land areas into the official management system, making land records more transparent. The issuance of official Certificates not only strengthens people’s rights but also creates a clear legal basis for future land use planning and planning.

It can be said that this new point not only removes difficulties for people, but also contributes to stabilizing the real estate market, and increases social trust in land policies.

Regarding land division and consolidation, the draft Resolution clearly stipulates that new land plots must have a path connecting to public transport routes. In cases where land users voluntarily reserve a part of the area for a common path, there is no need to change the land use purpose for that part of the area.

For land consolidation, the land plots must have the same purpose of use, except for some special cases related to residential land. This regulation not only helps to strictly manage land, avoid widespread subdivision, but also creates favorable conditions for people to conduct land transactions.

In addition, the draft also clearly stipulates that the settlement of land disputes is under the jurisdiction of the People’s Court, and at the same time simplifies procedures in some cases of sea encroachment, project transfer or change of land use purpose.

For people, this is an opportunity to legalize land use rights, separate plots to serve the needs of separation for children or investment and business.