The amended Land Law of 2024, recently passed by the National Assembly , will take effect from August 1st. One of the points of great interest is the regulation on granting land use right certificates (commonly known as land titles) for land without existing land use right documents.
Hunt for early purchases
Specifically, Article 138 of the amended Land Law stipulates that households and individuals currently using land without documents but not violating land laws, and not falling under cases where land was allocated without proper authority before July 1, 2014, will be considered for the issuance of land use right certificates. This article also outlines several cases that will be considered for the issuance of land use right certificates.
Many believe that when the aforementioned regulation comes into effect, it will resolve the issue of granting land use rights certificates for cases of land use originating from ancestors that has been used stably. These are still common cases, especially in rural areas.
In the context of a sluggish real estate market, with most investment channels unattractive, some have taken the risk of buying land without land titles in rural areas, hoping that when the Land Law comes into effect and land titles are issued, the selling price will increase many times over.
Many people are looking to buy land without land ownership certificates in Quang Khe commune, Dak G'long district, Dak Nong province.
Speaking to a reporter from the Nguoi Lao Dong newspaper, Mr. Bui Cong, a real estate broker in Dak Nong province, said that in the past few months he has received quite a few "orders" from customers inquiring about buying agricultural land without land titles. According to Mr. Cong, customers mainly request land with green titles (forest land), land without red titles but owned by people who have cultivated it for many years, or land with land extracts (land that has been surveyed and marked with boundary markers). "I just brokered the sale of two plots of land to two customers from Ho Chi Minh City and Hanoi. They bought agricultural land without titles, and immediately had boundary markers placed after the purchase. They said they bought it to wait for the land titles to be applied when the new law comes into effect on August 1st," Mr. Cong recounted.
According to Mr. Cong, forest land and agricultural land without land ownership certificates are currently very cheap, only 400-500 million VND/hectare (10,000 m2). Meanwhile, land with land ownership certificates is 2-3 times more expensive.
"Previously, when people talked about agricultural land without land titles, everyone was hesitant because they were afraid they wouldn't be able to get the paperwork done after buying it. Only local people bought and sold it among themselves for cultivation. Recently, many people have been actively searching for it, placing orders with me to find it. They may have learned about the new law allowing for land titles and the fact that this type of land is so cheap, which is why they're buying so much," Mr. Cong emphasized.
Similarly, Ms. Kim, an employee of a real estate brokerage company in Binh Phuoc and Tay Ninh provinces, also said that recently many people have contacted her asking to buy large plots of land for agriculture, with some even inquiring about buying land without land titles as long as the price is good. "Last week, my company advised and finalized a deal for a plot of land over 12 hectares, currently planted with durian and other fruit trees, in Loc Ninh district, Binh Phuoc province, for over 7 billion VND. Of these 12 hectares, only 3 hectares have land titles; the rest are still unregistered," Ms. Kim said.
A risky trend
Lawyer Nguyen Phuong Lien from SENLAW Law Firm stated that the new Land Law, soon to take effect, will facilitate the issuance of land titles to citizens. However, buying land without a title is a risky and potentially very dangerous form of investment. Citizens and investors need to carefully consider the advantages and disadvantages when buying or selling land following this trend. "Land without legal documents is usually much cheaper than land with officially recognized ownership. However, this comes with many risks. When buying land without legal documents, buyers find it difficult to verify the origin of the land, information about the plot, and its planning status. Furthermore, because there is no land use right certificate, buyers cannot be sure that the land is not subject to disputes or encroachment, or that there are overlapping land transactions and conflicts of ownership. In that case, buyers are dependent on the honesty of the seller. Buyers may also be restricted in their basic land use rights because they cannot transfer, gift, inherit, mortgage, change the land use purpose, or lease the land. If they want to build on the land, they must wait for the procedures to be completed to apply for a land use purpose conversion and obtain a land use right certificate..." - lawyer Lien analyzed.
As someone working in the real estate sector, Dr. Pham Anh Khoi, General Director of Real Estate Financial Services Company (FINA), stated that only after August 1st, when laws related to real estate and land business come into effect and are applied, can we assess the effectiveness of some people's "shortcut" decisions to buy land without land titles.
"Everyone knows that agricultural land, especially land without a land title, is very cheap, but if it is granted a title, the price will increase many times over. However, no one can be sure whether that untitled land is affected by any planning restrictions, is subject to disputes, or whether it will even be considered for a title."
"Agricultural land, if used for cultivation and with investment in high-tech agricultural production to increase economic efficiency, has great potential. However, those who buy agricultural land or land without a title deed to later change its purpose of use, subdivide it, and sell plots will face difficulties and are not encouraged under the Land Law and other laws related to real estate," this expert commented.
In fact, real estate and financial experts have repeatedly advised those with idle money and real estate investors to carefully consider before investing in land and houses in remote and suburban provinces. Before investing, they must consider the economic efficiency, exploitation potential, advantages, cash flow, return on investment, liquidity, and especially foreseeable risks.
Source: https://nld.com.vn/can-trong-khi-dau-tu-dat-khong-so-do-196240702212615686.htm
Comment (0)