Solving Problems in the Grant of Land Use Right Certificate

Issues related to land always cause pressing problems for ordinary people, thus they are looking forward to the amendment of 2005 Land Law. 

 

The Prime Minister will propose amendments to improve policies, laws and land-use management to clarify the rights of the State and the rights and obligations of land users for each type of land. The State will also consider extending the allocation time of land and the compensation for land acquisition in accordance with the interests of the state, land users and investors. The State will particularly ensure benefits of people in urban and rural areas.

 

Problems in the issue of land use right certificate (LURC)

Hukou (a certificate clarifying the number of members in a family living at one specific address and their basic information including year and place of birth, education, occupation, etc.) is the basis for granting land use right certificate. However, hukou is always changing due to split and merge of members, birth and death. Therefore, a household in hukou is not the same one as in land use right certificate.

 

Currently, when issuing the certificate of land use right, local authorities, especially ones in rural areas, still follow the old tradition of issuing general information without considering the consequences when that household uses land use right certificate in transactions. As for the certificate in the process of review, the authority will grant the LURC to households only when all members in that household submit LURC application certified by the commune’s People’s Committee. That will be the basement for land users to exercise their rights and obligations and for notary public offices as well as related agencies and organizations to accurately determine the number of members in households using land when they involve in transactions. In the case where the land was granted to households but one of the members of that household wants to split via a written agreement dividing the land use right, the authority must identify the land use right of remaining piece of land for the other members of that household.

 

The shortcomings and overlaps are due to incomplete and inconsistent lawful provisions. Besides, that people are unaware of the rights and obligations of personal property in the concept of household is increasingly becoming the object in the promotion of investment resources from the land for construction and development.

 

Currently, Hanoi authority has granted more than 1,057,645 LURCs for households and individuals, accounting for 95 percent of the eligible cases under the law in urban and rural areas. However, there still exist many problems in the process of issuing LURC.

 

Recently, Deputy Minister of Natural Resources and Environment, Mr Nguyen Manh Hien has worked with the Hanoi People's Committee on some of the content in the plan on management of land in the city. Many problems in LURC were brought to the working session.

 

Department of Natural Resources and Environment of Hanoi’s representative said that the city has about 112,000 cases ineligible for certificate of all types. They are classified into 12 types of using land against law, yet there is no or little legal basis to solve those cases. In addition, for purchase of houses in housing projects from 2001 to May 2012, Hanoi has allocated land for 370 development projects with a total land area of 121,433,750 sq.metres, equivalent to approximately 520,695 apartments, houses and villas in need of land use right certificate. 20,000 cases of house purchase have been issued certificates, and 200,000 others are still riddled with many unsolved problems.

 

Another pressing issue is that in some urban areas, the investors have not fulfilled their financial obligations to the State. In particular, they have not yet submitted full amount of money for land use right and followed improper construction of the approved design, making the issue of hukou stall and causing irritation for households.

 

Department of Natural Resources and Environment of Hanoi also said that, in recent years the grant of certificates of land use right for organizations reached the very low rate of about 27 percent. Up to now, Hanoi authority has only issued LURC for 5,208 in 19,247 pieces of land. When making the declaration and land certificate issue, organizations and enterprises have to follow the transition state of turning from enterprise to joint stock company. Enterprises applying for land certificate must follow the procedures established by the People’s Committee including re-determining the actual area under management and use, asking for approval of the Department of Planning and Architecture, planning for repairing and newly building areas, etc. This is the main cause of the delay in the declaration for certificates for economic organizations.

 

In addition, there are cases where the land won to launch investment project yet investor (or the project winning one) has not mapped out or carried out plan of the project according to regulations, but transferred land use rights to other organizations. Some investors even transferred the land use right to others right after winning projects, making it difficult for the grant of land certificates.

 

Many units are now not using land in accordance with the safety corridor for dyke works, historical, cultural, security and defense areas. Therefore, they are not yet eligible for land use right certificate. In addition, many enterprises or units using land have changes in land use area, but do not make the declaration or fulfill land use right. There exist some enterprises which have not yet followed financial obligations. Those enterprises are posing obstacles for the LURC issue progress in Hanoi.