What procedures do businesses leasing land use rights need to follow?

Businesses leasing land use rights help optimize resources, create stable income, and effectively exploit land value. To ensure legal transactions and avoid risks, businesses need to fully carry out procedures according to legal regulations, including determining rental conditions, drafting contracts, registering land changes, and fulfilling financial obligations. The content below provides detailed instructions on procedures, documents, and implementation orders. Please refer!

Conditions for businesses leasing land use rights

When leasing land use rights, businesses must meet the following conditions Article 45 of Land Law 2024, specifically:

1. Have one of several types of documents proving valid land use rights, including:

• Certificate of land use rights.
• Certificate of housing ownership and residential land use rights.
• Certificate of land use rights, ownership of houses and other assets attached to land.
• Certificate of land use rights, ownership of assets attached to land, except in cases of inheritance of land use rights, conversion of agricultural land when consolidating land, exchanging plots, donating land use rights to the State, residential communities, economic organizations with foreign investment capital receiving transfer of real estate projects according to the provisions of law on real estate business, land used to implement projects.

2. The land is not in dispute or the dispute has been resolved by a competent state agency, the judgment or decision of the Court, or the decision or award of the Arbitration has taken legal effect.
3. Land use rights are not distrained, other measures are applied to ensure judgment enforcement according to the provisions of the law on civil judgment enforcement.
4. The land is still within its useful life as prescribed in the Certificate.
5. Land use rights are not subject to temporary emergency measures according to the provisions of law.
6. In case of land leased with annual payments, businesses can only sublease it if it complies with the provisions of Article 133 of the Land Law 2024 and is approved by a competent State agency.

Enterprises that violate one of the above conditions may have their contracts declared invalid or be subject to administrative sanctions.

Enterprise’s process of leasing land use rights

Implementing procedures for leasing land use rights requires businesses to fully comply with legal regulations to ensure legal transactions, avoid risks of disputes and administrative sanctions.

Documents need to be prepared

Businesses need to prepare land lease records include:

• Application for land change registration.
• Contract for lease or sublease of land use rights, notarized or authenticated according to Article 122 of the Land Law 2024.
• Original certificate of land use rights.
• Written approval from a competent state agency for economic organizations receiving transfer, capital contribution, or lease of agricultural land use rights to implement investment projects.
• Document of the land user agreeing to allow the owner of assets attached to land to lease assets attached to land in the case of leasing assets attached to land where the asset owner is not also the land user.

Preparing complete documents according to regulations will help businesses carry out land change registration procedures quickly and legally. To avoid errors or problems during the approval process, businesses need to carefully review the necessary documents and follow the correct procedures.

Procedure for leasing land use rights

To ensure the leasing of land use rights goes smoothly, businesses need to follow the following order:

Step 1: Prepare a contract to lease land use rights:

• The contract needs to be made in writing, with full content according to the provisions of the Civil Code 2015 and the Land Law 2024.
• Notarize or authenticate the contract at a notary practice organization according to the provisions of Clause 3, Article 27 of the Land Law 2024.

Step 2: Prepare change registration documents:

• After the contract takes effect, businesses need to complete documents and register land changes according to regulations.
• Complete documents help shorten processing time at competent authorities.

Step 3: Submit documents to the competent authority:

• Depending on the locality, businesses submit documents at the Land Registration Office under the Department of Natural Resources and Environment or the district People’s Committee.
• The receiving agency is responsible for checking, receiving and processing documents according to regulations.

Step 4: Process documents and update changes to the Certificate:

• The land registration agency will verify records and update land use right lease information in the Land Use Rights Certificate.
• After completion, the business will receive a Land Use Rights Certificate with rental information recorded.

Fully implementing the above steps helps businesses ensure legal transactions, avoid legal risks and administrative sanctions according to Decree 91/2019/ND-CP.

Competent authority to resolve

Pursuant to the Land Law 2024, registration dossier for leasing land use rights accepted at:

• The land registration office belongs to the Department of Natural Resources and Environment, if the locality has established this agency.
• Department of Natural Resources and Environment or District People’s Committee, if the locality does not have a Land Registration Office.

Businesses need to check local regulations to determine the appropriate receiving agency.

Consulting services on procedures for leasing land use rights at Long Phan Consulting Company

Implementing procedures for leasing land use rights can be complicated if businesses do not clearly understand the legal regulations. Long Phan Consulting Company provide support services, including:

• Consulting on conditions and procedures for leasing land use rights according to regulations.
• Draft and review rental contracts, ensuring legality.
• Support businesses in submitting applications and working with state agencies.
• Consulting on solutions when there are disputes related to land lease contracts.
• Monitor the process of processing documents, receive results and hand them over to customers.

The above is one of the service items that we provide to you when carrying out procedures for leasing land use rights. In addition, we will base on your needs and each specific case to come up with the most optimal and effective solution.

Some frequently asked questions about businesses leasing land use rights

To give you a clearer perspective on this issue, we provide some common questions about businesses leasing land use rights:

Does the term of leasing land use rights affect the procedure?

The basic land change registration process is the same regardless of whether the lease term is short or long, as long as the contract is drawn up and notarized/authenticated properly. However, the lease term must be within the remaining land use term of the enterprise.

What basic contents should a land use rights lease contract ensure?

The contract must be made in writing and have contents that comply with the provisions of the Civil Code 2015 and the Land Law 2024, including information of the parties, detailed information about the land plot, lease term, rental price, payment method, rights and obligations of the parties.

If there is a house or construction on the land that is rented out, are the procedures different?

Change registration procedures apply generally to the lease of land use rights and assets attached to land (if any and recorded on the Certificate). The documents need to clearly show the lease of both land and assets on land.

In case an enterprise is leased land by the State with annual payment, what special attention should be paid to subleasing?

For land leased with annual payments, economic organizations can only sublease land use rights in the form of annual land rent payments and must be approved by a competent state agency according to the provisions of Article 133 of the Land Law 2024.

What evidence is considered valid to prove that land is not in dispute?

The land use rights certificate is the initial basis. If there is a resolved dispute, there needs to be a judgment or resolution decision from a competent state agency that has legal effect.

Can an enterprise authorize another person to carry out the change registration procedure?

The law allows land users to authorize others to carry out administrative procedures related to land through a duly notarized or authenticated authorization contract.

What is the purpose of “Document of approval from competent State agency” in the file?

This document is necessary in case leased land is used to implement an investment project, to ensure that the sublease is consistent with the approved project goals and progress.

Is notarization or authentication of land use rights lease contracts required in all cases?

According to Article 122 of the Land Law 2024 cited, land use rights lease contracts between economic organizations and related parties must be notarized or authenticated to ensure legality.

What is Form No. 09/DK mentioned?

This is the form for registration of changes in land and assets attached to land issued with Circular 09/2021/TT-BTNMT of the Ministry of Natural Resources and Environment, used uniformly in procedures for registering changes in land information.

What are the specific consequences if a business is late in registering changes after 30 days?

Enterprises may be fined for administrative violations according to Decree 91/2019/ND-CP (or its future replacement), the fine depends on the time of delay in registration and the type of land area.

Conclude

Businesses leasing land use rights need to comply with legal procedures to ensure the contract is valid and avoid risks. If you need advice or support in implementing procedures, please contact Long Phan Consulting Company via the hotline 0906735386 for detailed instructions.