In fact, many people living near resettlement areas intend to buy for investment because the price is quite cheap compared to long-term residential land. However, there are many cases where land in resettlement areas does not have a red book but is promised to be quickly granted.
What are the risks of buying resettlement land without a red book? ? If people still want to buy, is there any way to reduce the risk?
According to lawyer Doan Trung Hieu – Community Development Support Law Office – of the Hanoi Bar Association, the apartment Based on the 2013 Land Law and Decree 47/2014 of the Government on compensation and resettlement support when land is recovered, people need to pay attention to 3 issues:
What is resettlement land?
Currently, there are no specific regulations for the concept of resettlement land. According to the understanding based on the Land Law and related documents, resettlement land is land granted by the State to compensate people when land is recovered.
The purpose of this type of land is to help people have a new place to settle down and stabilize their lives.
The cases where people are supported with resettlement land are specified in Article 6 of Decree 47 on compensation, support, resettlement when land is recovered.
Risks when buying resettlement land
Resettlement land is land granted by the State for compensation. often recover land and support people whose land is recovered to stabilize their lives. Therefore, legally, resettlement land is land granted to people by the State, and the compensated person has the right to use that land. Although the person receiving compensation for the land has the right to use it, not all resettlement land is issued a red book.
When buying resettlement land without a red book, the buyer will have to carry out There are currently some quite cumbersome procedures regarding land use rights transfer contracts and authorization contracts. Because when the land does not have a red book, it will not be possible to carry out transfer procedures, so signing a transfer contract is only a contract between two people, and a trust contract must be made to entrust the rights to the transferee of the land. has the right to decide on all related issues such as paying taxes and fees (if any). However, buying resettlement land without a red book has many risks.
Signing an authorization contract is intended to cover up the transfer of land use rights without a red book, so If in case the transferor (seller) for some reason does not want to sell anymore, they can request the court to invalidate the contract, the authorization contract will be invalid. At this time, the parties will restore the original situation.
The transferee will suffer a loss because it can only receive the deposit back without interest or compensation. There is a risk that if the transferor is unable to return or does not want to return the deposit to the transferee, the transferee will lose everything or it may take a lot of time and effort and it will be very difficult to get the money back. spent.
Even when the purchase and sale transaction through an authorization contract goes smoothly, resettlement land buyers still face many difficulties in applying for a red book. The reason is because the law does not recognize the transfer of land use rights without a certificate (except for 2 exceptions but does not mention resettlement land). Therefore, when issuing resettlement red books, the competent authority only issues them to the person being resettled, that is, the seller (authorizing party) and not the buyer (authorized party).< /p>
In addition, another risk when buying resettlement land without a red book is that it is difficult to transfer to a third person. The reason is that the land plot has unclear legality, transfer transactions often revolve around authorization contracts, so it will make buyers afraid.
These How to reduce risks when buying resettlement land
First of all, you need to consider whether the land area has been issued a red book or consult and explore many sources to see if that land area has a red book. Are you eligible to be granted a red book?
Conditions to be granted a red book for resettlement land include: Achieving the minimum land area, length and width of the land; land allocated by the State for long-term use no disputes or lawsuits; fully fulfilled obligations finance at the State agency; have all kinds of documents proving legal use rights.
In case of reclaimed land Once settled, the buyer can feel secure and receive the land transfer as normal procedures.
In case the land is eligible for a red book but has not yet been issued, the buyer can negotiate the request. The seller carries out procedures to apply for a red book before the two parties carry out the transfer. However, this can easily lead to the above resettlement land’s price increasing after having a red book.
In addition, if the land is eligible for a red book, the buyer should buy and transfer the right to use the land. That is from the seller who is a relative who has high trust to avoid the seller or transferor for some reason “turning around” and canceling the authorization contract and the parties returning the money as well as the land use rights.< /p>”
