Can businesses sell assets on land when land is recovered?

Businesses sell assets on land when land is recovered as a solution to help minimize losses, recover their invested capital, and maintain control over the asset disposal process. Understanding the right to sell assets attached to land before being recovered helps businesses protect their legal rights, avoid unnecessary loss and ensure the recovery process is transparent and in accordance with land law.

In cases where there is no compensation for assets attached to land when the State recovers the land

Currently, the Land Law 2024 regulates cases where the state recovers land as follows:

• The State recovers land for defense and security purposes according to Article 78 of the Land Law 2024;
• Land recovery for socio-economic development for national and public benefits according to Article 79 of the Land Law 2024;
• Land recovery due to violation of land law according to Article 81 of the Land Law 2024;
• Land recovery means terminating the use of land according to the law, voluntarily returning the land, there is a risk of threatening human life, and it is no longer possible to continue using it according to Article 82 of the Land Law 2024.

Pursuant to the provisions of Article 105 of the Land Law 2024, cases in which compensation for assets attached to land is not provided when the State recovers land include:

• Assets attached to land fall into one of the cases of land recovery specified in Clauses 1, 2, 4, 5 and 8, Article 81, Points b and c, Clause 1, Article 82 of the Land Law 2024.
• Assets attached to land are created in contravention of the law or created within the validity period of a land recovery notice from a competent state agency according to the provisions of the Land Law 2024;
• Assets attached to land are the part of the construction work under a construction permit with a term according to the law on construction, but by the time the land is recovered, the permit has expired. Property owners are supported for dismantling, demolishing, and relocation.
• Technical infrastructure, social infrastructure and other construction works that the owner of the project determines no longer need to use before the decision to recover land by the competent authority.

Thus, in cases where an enterprise is subject to compensation for assets on land from the state, it will not sell assets after the land recovery decision has been made. Because at this time, selling assets on land such as construction works, houses,… is not legally guaranteed. But businesses can consider harvesting crops, seafood,…

Can businesses sell assets on land when land is recovered?

Enterprises have the right to sell assets on land when land is recovered in certain cases.

Specifically, according to the provisions of Clause 7, Article 32 of Decree No. 102/2024/ND-CP, in case an enterprise has land recovered according to the provisions of Clause 7, Article 81 of the Land Law 2024 due to violation of land law, the enterprise is allowed to sell assets attached to the recovered land within 12 months from the date of the land recovery decision.

This time period is prescribed to create conditions for businesses to have time to carry out liquidation and transfer of assets on land. The sale of assets must comply with the provisions of law.

In case the investor acquires assets attached to land from the person whose land is recovered, the State will allocate and lease the land according to the provisions of law.

Thus, when the state recovers land in Clause 7, Article 81 of the Land Law 2024, only businesses can sell assets on land. This is a new regulation that creates favorable conditions for businesses when land is recovered to recover the value of assets invested in land before handing over the land to the State.

Are assets on confiscated land compensated by the state?

According to the provisions of Article 91 of the Land Law 2024 on compensation principles, the State’s land recovery must ensure objectivity, fairness and timeliness. Therefore, assets on land are considered for compensation if the enterprise is not subject to compensation for assets on land according to the provisions of Article 105 of the Land Law 2024.

In addition, in case an enterprise has land recovered due to violation of land law as prescribed in Clause 7, Article 81 of the Land Law 2024, if at the end of 12 months from the date of the decision to recover land, the recovered land user cannot sell his or her assets attached to the land, then the State will not compensate for assets attached to the land.

Furthermore, the property owner must dismantle the property and return the site to the State within the time limit stated in the land recovery decision. In case of failure to do so, the competent state agency will conduct forced land recovery according to regulations. Costs for dismantling and relocating assets in this case will be paid by the asset owner.

Thus, depending on each case, the state will compensate for damage to assets attached to the recovered land.

The time limit for enterprises to sell assets on recovered land

In cases where an enterprise has land recovered according to Clause 7, Article 81 of the Land Law 2024, the enterprise has 12 months from the date of the land recovery decision to sell assets on the recovered land. This period is calculated from the date the land recovery decision takes legal effect.

During this period, the enterprise has the right to conduct activities such as: liquidating assets, finding partners to buy back assets, and carrying out asset transfer procedures according to the provisions of law. The sale of assets must ensure compliance with regulations on registration, information disclosure, tax obligations and other financial obligations.

In cases where the recovered enterprise is eligible for compensation for assets on land, the enterprise can sell the assets before the land recovery decision is made. The buyer of assets attached to land must be informed about the plan for land recovery and dismantling and relocation of assets on land by the competent authority and must have a written agreement agreeing to the purchase and sale.

It can be seen that complying with this deadline helps businesses avoid the risk of losing the value of assets invested in land. Therefore, businesses need to proactively plan to handle assets as soon as they receive the land recovery decision to avoid missing the legal deadline, leading to unnecessary losses.

Consulting services for handling assets on recovered land of businesses at Long Phan Consulting Company

We provide comprehensive consulting services on handling assets on recovered land for businesses. Our consulting services include:

• Review land legal documents;
• Consulting on optimal asset disposal plans;
• Support negotiations with relevant parties;
• Drafting property purchase and sale contracts;
• Consulting on asset valuation;
• Advise on solutions when risks arise;
• Representing businesses in the process of appealing against land recovery decisions that do not comply with the law.

Above are some of the items that you will have access to while using our service package. We are committed to bringing the best results, worthy of your expectations.

Some frequently asked questions about handling assets on land recovered by the state from businesses at Long Phan Consulting Company

We would like to provide some common questions surrounding the sale of property on land recovered by the State. Please refer!

Is a business allowed to retain assets on land after the time limit for selling the assets expires?

No, after the 12-month period from the date of the land recovery decision, if the enterprise cannot sell the assets, it must dismantle it itself and return the premises to the State.

How is the compensation value of assets on land determined?

The compensation value is determined according to the market price at the time of the land recovery decision.

In what cases can businesses appeal the land recovery decision?

Enterprises can complain if the decision to recover land does not comply with the law.

What costs do businesses have to bear when dismantling assets on land?

Enterprises must bear the costs of dismantling and relocating assets.

What’s new in the regulations on selling property on land when it is revoked?

The new regulations create favorable conditions for businesses when land is recovered to recover the value of assets invested in land before handing over the land to the State.

With the above answers, we hope to have answered some of your questions about regulations related to handling assets on land recovered by the State.

Conclude

Thus, selling assets on land when land is recovered is the legal right of the enterprise within the legal time limit. Mastering the legal regulations on handling assets on recovered land helps businesses protect their legitimate rights. If you need detailed advice on this issue, please contact Long Phan Consulting Company via the hotline 0906735386 to receive timely and effective support from a team of experts.